Compare three retirement withdrawal strategies side-by-side using 35 years of real historical market data. Find out which approach keeps your money working longest.
| Year | Hist. Year | Stock Return | Bond Return | Portfolio Return | Start Balance | Withdrawal | End Balance | Status |
|---|
Withdraw a fixed dollar amount equal to your initial rate times your portfolio. Adjust that dollar amount for inflation each year, regardless of portfolio performance. Simple and predictable, but rigid.
Start like Static, but apply guardrail rules: if your current withdrawal rate rises 20% above initial (portfolio dropped), cut spending 10%. If it falls 20% below initial (portfolio grew), take a 10% raise. Adapts to market conditions.
Withdraw a fixed percentage of whatever the portfolio is worth each year. Income fluctuates with the market, but the portfolio can theoretically never be depleted to zero. Provides a natural safety valve.
Historical data cycles through S&P 500 stock returns and US aggregate bond returns from 1990 to 2024 (35 years). For simulations longer than 35 years, the cycle repeats. This is a simplified educational model; actual returns will vary.