US Intermediate Term (3-7y) Treasuries: a good asset for your retirement?

Last Update: 31 October 2024

US Intermediate Term (3-7y) Treasuries is an asset class belonging to Fixed Income category.

You can invest in this asset class, let it passively follow the market trend, and in the meantime you can periodically withdraw a portion of it for your retirement.

Worst case scenario so far, over a 30-year time horizon, you could have withdrawn 2.453% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 30 years.

Considering the last 30-year (last update: October 2024), a safe withdrawal rate would have been 5.544%.

In this post, we will find out the most affordable withdrawal strategies. All calculations are made on actual historical series.

US Intermediate Term (3-7y) Treasuries asset class

Over the last 30 years (last update: October 2024), the asset class has returned 4.39% annualized, with a maximum drawdown of -13.59%.

Let's consider different timeframes, all ending at October 2024: which Withdrawal Rates could you have applied without running out of money in your retirement?

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 Oct 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]		 Max
Drawdown(%)
10 Years 1 Nov 2014
 31 Oct 2024 0.000 9.643 1.17
[ -1.67 ] 		-13.59
Aug 2020 - Oct 2022
20 Years 1 Nov 2004
 31 Oct 2024 0.163 5.715 2.70
[ 0.14 ] 		-13.59
Aug 2020 - Oct 2022
30 Years 1 Nov 1994
 31 Oct 2024 2.322 5.544 4.39
[ 1.83 ] 		-13.59
Aug 2020 - Oct 2022
40 Years 1 Nov 1984
 31 Oct 2024 4.078 5.976 5.77
[ 2.91 ] 		-13.59
Aug 2020 - Oct 2022
50 Years 1 Nov 1974
 31 Oct 2024 2.894 4.014 6.39
[ 2.59 ] 		-13.59
Aug 2020 - Oct 2022
60 Years 1 Nov 1964
 31 Oct 2024 1.830 2.642 6.00
[ 1.98 ] 		-13.59
Aug 2020 - Oct 2022
70 Years 1 Nov 1954
 31 Oct 2024 1.630 2.258 5.50
[ 1.85 ] 		-13.59
Aug 2020 - Oct 2022
80 Years 1 Nov 1944
 31 Oct 2024 0.991 1.505 5.07
[ 1.35 ] 		-13.59
Aug 2020 - Oct 2022
Simulations are calculated with actual returns of US Intermediate Term (3-7y) Treasuries 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 October 2024

Withdrawal Rates Simulation (updated at Oct 2024)

During your retirement, tipically you want to divest periodically some amount of money from your invested capital, without running out of money over a long period.

How much would it be an acceptable withdrawal rate, for the US Intermediate Term (3-7y) Treasuries asset class?

▼ Methodology and Definitions
The algorithm calculates the chance of success of a initial withdrawal rate, whose amount in dollars is adjusted monthly for inflation. The algorithm tries a retirement simulation, starting at every possible month in the given period.
For instance, assuming a 20 years retirement, the algorithm will cover each 20 year timeframe starting at every possible month in the given period between the start and end month.

Here's how simulations work (each simulation is based on actual asset class returns, in US dollars):
  • At the beginning, you start with a certain amount of money invested in the portfolio (i.e. the initial invested capital).
  • Each month, money is withdrawn from the portfolio. The withdrawal rate is calculated based on the initial withdrawn, annualized.
  • Each month, portfolio value is updated, based on the asset classes returns (dividends are supposed to be reinvested).
  • Each month, portfolio is rebalanced, to reset to the original weight of the assets (applicable only if portfolio contains at least 2 assets).
  • Each month, the withdrawal is adjusted for inflation (US Inflation is used for simulation).
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.

The Perpetual Withdrawal Rate (PWR) is the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, preserving the original invested capital, adjusted for inflation too.

The Safe Withdrawal Rate (SWR) is the percentage of the initial portfolio balance that can be withdrawn at the beginning of each month with inflation adjustment, without the portfolio running out of money.

Learn more about Withdrawal Rate simulation
Data Sources and Credits

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

For instance, given a 20 years timeframe, the algorithm will cover each 20 year timeframe starting at every possible month in the given period between the start and end month (Oct 2024).

Period: Jan 1871 - Oct 2024
Period: Nov 1924 - Oct 2024
Period: Nov 1974 - Oct 2024
Swipe left to see all data
PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital (Infl.Adj) 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Timeframes 10 Years
Worst Period (from) 		0.000
Jun 1896 		0.000
Jan 1910 		1.893
May 1941 		4.920
May 1941 		7.488
Sep 1915 		8.357 8.725 9.702 10.872
20 Years
Worst Period (from) 		0.000
May 1897 		0.000
Jan 1899 		0.933
Aug 1939 		2.364
Aug 1939 		3.652
Feb 1941 		4.145 4.598 4.817 5.841
30 Years
Worst Period (from) 		0.000
May 1890 		0.000
Jun 1939 		0.739
May 1940 		1.626
Nov 1940 		2.453
Feb 1941 		2.801 3.044 3.455 4.079
40 Years
Worst Period (from) 		0.000
Feb 1933 		0.000
Nov 1938 		0.145
Sep 1941 		0.998
Aug 1941 		1.826
Feb 1941 		2.059 2.236 2.774 3.259
50 Years
Worst Period (from) 		0.000
Feb 1931 		0.210
Jun 1934 		0.733
Jun 1934 		1.189
Jun 1939 		1.506
Feb 1941 		1.709 1.782 2.365 2.829
60 Years
Worst Period (from) 		0.608
Oct 1915 		0.839
Aug 1939 		1.020
Aug 1939 		1.201
Aug 1939 		1.377
Feb 1941 		1.527 1.609 2.075 2.458
70 Years
Worst Period (from) 		0.234
Aug 1911 		0.635
May 1911 		1.028
May 1911 		1.188
Aug 1939 		1.304
Feb 1941 		1.428 1.492 1.825 2.149
80 Years
Worst Period (from) 		0.428
May 1901 		0.751
May 1901 		1.048
Jun 1939 		1.150
Jun 1939 		1.251
Feb 1941 		1.354 1.412 1.673 1.978
Legend:
SWR 100% Success
95% Success
90% Success
PWR 100% Capital Protection
75%
50% Protection
25%
Swipe left to see all data
PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital (Infl.Adj) 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Timeframes 10 Years
Worst Period (from) 		0.000
May 1936 		0.000
Jul 1938 		1.893
May 1941 		4.920
May 1941 		7.798
Feb 1946 		8.495 8.794 9.630 10.650
20 Years
Worst Period (from) 		0.000
Apr 1932 		0.000
Sep 1938 		0.933
Aug 1939 		2.364
Aug 1939 		3.652
Feb 1941 		4.015 4.234 4.730 5.612
30 Years
Worst Period (from) 		0.000
Oct 1932 		0.000
Jun 1939 		0.739
May 1940 		1.626
Nov 1940 		2.453
Feb 1941 		2.688 2.814 3.187 3.796
40 Years
Worst Period (from) 		0.000
Feb 1933 		0.000
Nov 1938 		0.145
Sep 1941 		0.998
Aug 1941 		1.826
Feb 1941 		1.988 2.063 2.277 3.099
50 Years
Worst Period (from) 		0.000
Feb 1931 		0.210
Jun 1934 		0.733
Jun 1934 		1.189
Jun 1939 		1.506
Feb 1941 		1.587 1.706 1.780 2.670
60 Years
Worst Period (from) 		0.658
Aug 1939 		0.839
Aug 1939 		1.020
Aug 1939 		1.201
Aug 1939 		1.377
Feb 1941 		1.428 1.514 1.580 2.253
70 Years
Worst Period (from) 		0.838
Jul 1939 		0.955
Aug 1939 		1.072
Aug 1939 		1.188
Aug 1939 		1.304
Feb 1941 		1.336 1.386 1.458 1.855
80 Years
Worst Period (from) 		0.846
Jun 1939 		0.947
Jun 1939 		1.048
Jun 1939 		1.150
Jun 1939 		1.251
Feb 1941 		1.274 1.293 1.365 1.475
Legend:
SWR 100% Success
95% Success
90% Success
PWR 100% Capital Protection
75%
50% Protection
25%
Swipe left to see all data
PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital (Infl.Adj) 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Timeframes 10 Years
Worst Period (from) 		0.000
Nov 2011 		0.702
Nov 2013 		3.750
Nov 2013 		6.788
Nov 2014 		9.085
Dec 1976 		9.659 9.879 10.476 11.898
20 Years
Worst Period (from) 		0.000
Jul 2003 		1.399
Oct 2003 		2.816
Jul 2003 		4.217
Jun 2003 		5.606
Jun 2003 		5.841 6.132 6.385 7.286
30 Years
Worst Period (from) 		1.714
Nov 1993 		2.538
Nov 1993 		3.361
Oct 1993 		4.182
Oct 1993 		4.831
Dec 1976 		5.020 5.076 5.255 5.998
Legend:
SWR 100% Success
95% Success
90% Success
PWR 100% Capital Protection
75%
50% Protection
25%
Simulations are calculated with actual returns of US Intermediate Term (3-7y) Treasuries 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 October 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the US Intermediate Term (3-7y) Treasuries asset class, 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 the past timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Oct 2024
Period: Nov 1924 - Oct 2024
Period: Nov 1974 - Oct 2024
Swipe left to see all data
Withdrawal
Rate
10 Years
10 Years
20 Years
20 Years
30 Years
30 Years
40 Years
40 Years
50 Years
50 Years
60 Years
60 Years
70 Years
70 Years
80 Years
80 Years
% Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile
2.00 %
100.00
100.00
100.00
100% Succ.
2.453%
97.00
95% Succ.
2.059%
86.45
80% Succ.
2.365%
82.52
80% Succ.
2.075%
63.56
50% Succ.
2.149%
49.49
2.50 %
100.00
100.00
99.39
95% Succ.
2.801%
86.83
80% Succ.
2.774%
73.38
50% Succ.
2.829%
47.12
32.37
26.83
3.00 %
100.00
100.00
90.79
90% Succ.
3.044%
68.76
50% Succ.
3.259%
40.74
21.65
18.97
18.26
3.50 %
100.00
100.00
100% Succ.
3.652%
77.54
43.23
20.05
14.73
12.21
9.47
4.00 %
100.00
97.26
95% Succ.
4.145%
51.92
50% Succ.
4.079%
29.63
12.83
9.58
7.35
7.10
4.50 %
100.00
92.28
90% Succ.
4.598%
44.72
21.07
7.14
5.86
5.66
5.52
5.00 %
100.00
72.18
38.87
14.92
5.21
4.61
4.47
3.61
5.50 %
100.00
55.07
50% Succ.
5.841%
26.70
10.90
4.17
3.02
2.38
0.56
6.00 %
100.00
48.91
18.76
8.63
2.97
1.15
0.00
0.00
6.50 %
100.00
43.12
12.84
5.93
1.60
0.00
0.00
0.00
7.00 %
100.00
100% Succ.
7.488%
35.97
9.28
3.80
0.00
0.00
0.00
0.00
7.50 %
99.88
27.38
6.32
1.76
0.00
0.00
0.00
0.00
8.00 %
97.63
19.17
3.77
0.15
0.00
0.00
0.00
0.00
Swipe left to see all data
Withdrawal
Rate
10 Years
10 Years
20 Years
20 Years
30 Years
30 Years
40 Years
40 Years
50 Years
50 Years
60 Years
60 Years
70 Years
70 Years
80 Years
80 Years
% Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile % Success Percentile
2.00 %
100.00
100.00
100.00
100% Succ.
2.453%
94.31
90% Succ.
2.063%
71.88
61.12
50% Succ.
2.253%
43.77
29.88
2.50 %
100.00
100.00
98.93
95% Succ.
2.688%
75.17
59.73
50% Succ.
2.670%
34.51
2.77
0.00
3.00 %
100.00
100.00
83.71
80% Succ.
3.187%
57.28
50% Succ.
3.099%
26.79
0.00
0.00
0.00
3.50 %
100.00
100.00
100% Succ.
3.652%
70.63
50% Succ.
3.796%
35.78
4.99
0.00
0.00
0.00
4.00 %
100.00
95.42
95% Succ.
4.015%
46.61
21.64
0.67
0.00
0.00
0.00
4.50 %
100.00
87.83
80% Succ.
4.730%
38.88
14.42
0.00
0.00
0.00
0.00
5.00 %
100.00
70.45
34.72
10.68
0.00
0.00
0.00
0.00
5.50 %
100.00
53.07
50% Succ.
5.612%
20.93
8.74
0.00
0.00
0.00
0.00
6.00 %
100.00
44.22
14.15
7.35
0.00
0.00
0.00
0.00
6.50 %
100.00
37.15
8.56
4.02
0.00
0.00
0.00
0.00
7.00 %
100.00
31.11
6.66
2.36
0.00
0.00
0.00
0.00
7.50 %
100.00
100% Succ.
7.798%
22.89
3.80
0.42
0.00
0.00
0.00
0.00
8.00 %
98.61
13.22
2.02
0.00
0.00
0.00
0.00
0.00
Swipe left to see all data
Withdrawal
Rate
10 Years
10 Years
20 Years
20 Years
30 Years
30 Years
% Success Percentile % Success Percentile % Success Percentile
2.00 %
100.00
100.00
100.00
2.50 %
100.00
100.00
100.00
3.00 %
100.00
100.00
100.00
3.50 %
100.00
100.00
100.00
4.00 %
100.00
100.00
100.00
4.50 %
100.00
100.00
100.00
100% Succ.
4.831%
5.00 %
100.00
100.00
96.68
95% Succ.
5.020%
5.50 %
100.00
100.00
100% Succ.
5.606%
71.37
50% Succ.
5.998%
6.00 %
100.00
91.69
90% Succ.
6.132%
49.38
6.50 %
100.00
77.01
29.88
7.00 %
100.00
62.33
50% Succ.
7.286%
23.24
7.50 %
100.00
42.11
13.28
8.00 %
100.00
25.21
7.05
Simulations are calculated with actual returns of US Intermediate Term (3-7y) Treasuries 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 October 2024

Related Pages

Asset Class Main Page:
US Intermediate Term (3-7y) Treasuries Asset Class

For the US Intermediate Term (3-7y) Treasuries 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%   

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