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What Is The 'Floor & Ceiling' Retirement Spending Strategy?

In a 2001 article, William Bengen offered a new balance between the constant amount and fixed percentage strategies with his “floor and ceiling” spending approach. This method begins by applying the fixed percentage rule, which allows greater spending when markets are up and forces spending reductions when they are down. While [...]
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Retirement Spending Increases And Decreases Over Time

Business & Finance / Personal Finance : Forbes: Personal Finance

An important simplifying assumption in William Bengen’s research is that retirees spend constant inflation-adjusted amounts throughout retirement. This may be at odds with the spending patterns of many retirees. An exploration of th...

The Perks Of Being A Flexible Spender In Retirement

Business & Finance / Personal Finance : Forbes: Personal Finance

William Bengen’s 1994 article introduced the concept of the 4% rule for retirement withdrawals. He defined the sustainable spending rate as the percentage of retirement date assets which can be withdrawn, with this amount adjusted f...

The Problems With A Constant Retirement Spending Strategy

Business & Finance / Personal Finance : Forbes: Personal Finance

The first method to be tested is the original constant inflation-adjusted withdrawal strategy introduced in William Bengen’s 1994 article, “Determining Withdrawal Rates Using Historical Data.” This will serve as a baseline for subse...

Seeking A Fixed Percentage Approach To Retirement Spending

Business & Finance / Personal Finance : Forbes: Personal Finance

The fixed percentage withdrawal strategy is the polar opposite of constant inflation-adjusted spending. Subsequent strategies we consider will strive to strike a balance between these two. This fixed percentage strategy calls for re...

What Is The 'Floor & Ceiling' Retirement Spending Strategy?

Business & Finance / Personal Finance : Forbes: Personal Finance

Placing a ceiling on spending will preserve sustainability by saving more than is needed in case of a rainy day. While including a floor on how far spending can fall opens the possibility of wealth depletion, it becomes increasingly...

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