Commodities: 10-year retirement

Last Update: 30 June 2024

Do you have in mind a 10 years retirement, investing in the Commodities asset class?

According to the historical returns and stats of the asset class, which has been a sustainable withdrawal rate to live off your investiment?

Worst case scenario so far, over a 10-year time horizon, you could have withdrawn 2.99% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 10 years.

Considering the last 10 years (last update: June 2024), a safe withdrawal rate would have been 4.446%.

The last 10 years of the Commodities asset class

Over the last 10 years (last update: June 2024), the asset class has returned -4.17% annualized, with a maximum drawdown of -75%.

The Withdrawal Rates calculated here are annualized and refer to the initial capital (not the current!). The first month withdrawal is 1/12 of that annualized withdrawal and it's adjusted for inflation for each subsequent month.

A Perpetual Withdrawal Rate (PWR) protected the original inflation adjusted capital.

A Safe Withdrawal Rate (SWR) didn't protect the original capital, but the investment didn't run out of money during retirement. The capital went to zero exaclty at the end of the retirement period.

Learn more about Withdrawal Rate simulation
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Timeframes ending at Jun 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]
Max
Drawdown(%)
10 Years 1 Jul 2014
30 Jun 2024 0.000 4.446 -4.17
[ -6.78 ]
-75.00
Jul 2014 - Apr 2020
Simulations are calculated with actual returns of Commodities Asset Class | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Inflation is updated at June 2024

For a complete view of the asset class and all the possible strategies, please refer to Commodities page.

Withdrawal Rates Simulation (updated at Jun 2024)

How much would it be an acceptable withdrawal rate, for the Commodities asset class?

Analyzing the available data source, all the 10-years timeframes have been considered to calculate the withdrawal rates and their success percentage.

Legend:
SWR 100% Success
PWR 100% Capital Protection
Period: Jan 1871 - Jun 2024
Period: Jul 1924 - Jun 2024
Period: Jul 1974 - Jun 2024
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WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
0.000
Jan 1878
0.000
Sep 1908
0.000
Feb 1910
0.000
Mar 2008
2.990
Jul 2008
95%
0.000
0.000
0.000
1.869
5.261
90%
0.000
0.000
0.000
3.011
6.741
80%
0.000
0.000
2.319
5.438
8.465
50%
Median WR
0.000
2.230
4.690
7.186
9.605
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WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
0.000
Feb 1933
0.000
Aug 1936
0.000
Feb 2005
0.000
Mar 2008
2.990
Jul 2008
95%
0.000
0.000
0.000
1.774
5.300
90%
0.000
0.000
0.374
3.940
7.247
80%
0.000
0.000
2.360
5.423
8.383
50%
Median WR
0.771
3.242
5.417
7.607
9.605
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WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
0.000
Aug 1974
0.000
Nov 1974
0.000
Feb 2005
0.000
Mar 2008
2.990
Jul 2008
95%
0.000
0.000
0.000
0.858
4.645
90%
0.000
0.000
0.000
1.646
4.963
80%
0.000
0.000
0.010
2.708
6.928
50%
Median WR
2.992
4.950
6.848
8.932
10.812
Simulations are calculated with actual returns of Commodities Asset Class | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Inflation is updated at June 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the Commodities asset class, over 10 years, which would have been the success rate so far?

Simulations follow the same rules mentioned before. Withdrawals are expressed as yearly rates and refer to the initial capital. After that, withdrawal amount is monthly adjusted for inflation.

Success rates are calculated over all 10-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Jun 2024
Period: Jul 1924 - Jun 2024
Period: Jul 1974 - Jun 2024
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Withdrawal
Rate
% Success over 10 Years
% Fail
% Success over 10 Years - on % Preserved Capital (Infl.Adj)
At least 0%
Capital Preserved
Percentile No Capital
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
100.00
0.00
94.60
81.72
52.18
29.89
2.50 %
100.00
100% Succ.
2.990%
0.00
91.70
78.93
47.36
26.12
3.00 %
99.94
0.06
90.08
74.75
43.47
23.62
3.50 %
99.83
0.17
88.16
69.70
38.65
21.01
4.00 %
99.54
0.46
87.29
59.08
32.73
18.86
4.50 %
98.32
1.68
86.07
53.05
28.73
16.95
5.00 %
95.71
95% Succ.
5.261%
4.29
82.53
47.42
23.68
15.15
5.50 %
94.20
5.80
79.05
42.08
20.55
13.29
6.00 %
93.27
6.73
72.78
35.69
18.51
11.32
6.50 %
92.16
90% Succ.
6.741%
7.84
63.55
30.30
16.08
10.33
7.00 %
88.97
11.03
52.58
24.38
13.70
9.46
7.50 %
87.46
12.54
45.85
20.26
12.01
8.30
8.00 %
84.39
15.61
40.10
17.59
10.91
6.62
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
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Withdrawal
Rate
% Success over 10 Years
% Fail
% Success over 10 Years - on % Preserved Capital (Infl.Adj)
At least 0%
Capital Preserved
Percentile No Capital
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
100.00
0.00
94.63
83.07
55.23
43.57
2.50 %
100.00
100% Succ.
2.990%
0.00
91.67
78.63
52.73
40.43
3.00 %
99.91
0.09
90.56
72.06
50.69
37.47
3.50 %
99.72
0.28
90.29
66.79
48.84
33.49
4.00 %
99.26
0.74
89.92
56.71
45.51
30.06
4.50 %
98.89
1.11
88.81
55.32
42.28
27.01
5.00 %
95.37
95% Succ.
5.300%
4.63
83.26
52.73
37.00
24.14
5.50 %
94.63
5.37
78.72
49.58
32.65
21.18
6.00 %
93.71
6.29
68.92
46.35
29.51
18.04
6.50 %
92.41
7.59
60.31
42.46
25.62
16.47
7.00 %
91.03
90% Succ.
7.247%
8.97
55.04
36.36
21.83
15.08
7.50 %
89.82
10.18
50.79
31.91
19.15
13.23
8.00 %
85.11
14.89
45.79
28.03
17.39
10.55
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
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Withdrawal
Rate
% Success over 10 Years
% Fail
% Success over 10 Years - on % Preserved Capital (Infl.Adj)
At least 0%
Capital Preserved
Percentile No Capital
Preserved
25%
Preserved
50%
Preserved
75%
Preserved
100%
Preserved
2.00 %
100.00
0.00
87.94
75.68
70.69
56.34
2.50 %
100.00
100% Succ.
2.990%
0.00
81.29
75.05
67.78
53.64
3.00 %
99.79
0.21
78.79
74.64
64.45
49.90
3.50 %
99.38
0.62
78.17
73.60
62.58
45.11
4.00 %
98.34
1.66
77.34
72.35
58.63
40.12
4.50 %
97.51
95% Succ.
4.645%
2.49
76.51
70.48
54.68
35.97
5.00 %
89.60
10.40
75.47
67.98
49.48
32.85
5.50 %
87.94
12.06
74.84
64.86
43.24
30.35
6.00 %
85.86
14.14
74.22
60.91
38.46
27.86
6.50 %
82.95
80% Succ.
6.928%
17.05
72.56
55.30
34.93
25.36
7.00 %
79.83
20.17
70.69
48.44
32.02
22.45
7.50 %
78.17
21.83
66.32
42.62
29.73
18.71
8.00 %
77.13
22.87
59.88
37.21
26.82
13.51
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of Commodities Asset Class | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Inflation is updated at June 2024

Related Pages

Asset Class Main Page:
Commodities Asset Class

For the Commodities Asset Class, we have prepared a report for each available timeframe:
10-Year    20-Year    30-Year    40-Year    50-Year    60-Year    70-Year    80-Year   

if you want to learn more about the statistics of a specific withdrawal rate, we suggest these in particular:
2%    2.5%    3%    3.5%    4%    4.5%    5%   

Website Homepage:
BestRetirementPortfolio.com