$1M Portfolio Could Generate $40,000 Annual Income for 30 Years

The famous 4% rule from 1994 remains surprisingly durable — but the original study contained crucial details most retirees overlook

The Details

Bengen's original 4% finding assumed no fees, perfect rebalancing, and most critically — the retiree would never earn another dollar or adjust spending even if the portfolio doubled. Real retirees who can cut spending 10% in bad years may safely start at 5% or higher.

What this means for you

Retirement decisions compound — getting one of these details wrong can cost tens of thousands of dollars over a retirement. The good news: most of these mistakes are completely avoidable if you understand how the rule actually works.

Next step

If you want to see how this applies to your specific situation, take the free Retire Ready Score — a 2-minute assessment that scores your current plan across income, taxes, healthcare, and protection.