US Small Cap Value: 20-year retirement

Last Update: 31 January 2024

Do you have in mind a 20 years retirement, investing in the US Small Cap Value 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Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 3.38% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.

Considering the last 20 years (last update: January 2024), a safe withdrawal rate would have been 8.098%.

The last 20 years of the US Small Cap Value asset class

Over the last 20 years (last update: January 2024), the asset class has returned 8.49% annualized, with a maximum drawdown of -54.13%.

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
Swipe left to see all data
Timeframes ending at Jan 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]
Max
Drawdown(%)
20 Years 1 Feb 2004
31 Jan 2024 5.456 8.098 8.49
[ 5.76 ]
-54.13
Jun 2007 - Feb 2009
Simulations are calculated with actual returns of US Small Cap Value 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 January 2024

For a complete view of the asset class and all the possible strategies, please refer to US Small Cap Value page.

Withdrawal Rates Simulation (updated at Jan 2024)

How much would it be an acceptable withdrawal rate, for the US Small Cap Value asset class?

Analyzing the available data source, all the 20-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 - Jan 2024
Swipe left to see all data
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
May 1901
0.000
Jun 1912
0.898
Jul 1912
2.920
Sep 1929
3.380
Sep 1929
95%
2.303
3.241
3.959
4.734
5.549
90%
3.384
4.069
4.859
5.369
5.950
80%
5.361
5.889
6.441
6.908
7.577
50%
Median WR
7.861
8.388
8.891
9.382
9.949
Period: Feb 1924 - Jan 2024
Swipe left to see all data
WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
1.538
Sep 1929
1.999
Sep 1929
2.459
Sep 1929
2.920
Sep 1929
3.380
Sep 1929
95%
4.807
5.137
5.451
5.720
5.972
90%
5.803
6.292
6.653
6.998
7.342
80%
6.970
7.338
7.753
8.122
8.463
50%
Median WR
9.361
9.857
10.315
10.794
11.262
Period: Feb 1974 - Jan 2024
Swipe left to see all data
WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj)
100%
Preserved
75%
Preserved
50%
Preserved
25%
Preserved
0%
Preserved
Success 100%
Worst Period (From)
5.094
May 2002
5.662
May 2002
6.173
May 1998
6.676
May 1998
7.179
May 1998
95%
5.981
6.576
7.063
7.577
8.102
90%
6.356
6.917
7.525
8.165
8.792
80%
7.652
8.215
8.712
9.213
9.693
50%
Median WR
9.887
10.422
10.955
11.448
11.965
Simulations are calculated with actual returns of US Small Cap Value 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 January 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the US Small Cap Value asset class, over 20 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 20-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Jan 2024
Swipe left to see all data
Withdrawal
Rate
% Success over 20 Years
% Fail
% Success over 20 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
100.00
99.81
98.37
96.68
2.50 %
100.00
0.00
100.00
99.56
97.68
94.12
3.00 %
100.00
100% Succ.
3.380%
0.00
99.94
98.62
95.99
91.74
3.50 %
99.94
0.06
99.62
97.56
93.55
88.99
4.00 %
99.69
0.31
98.87
94.87
90.49
87.23
4.50 %
99.31
0.69
96.62
92.05
87.61
84.23
5.00 %
98.50
1.50
93.24
88.74
84.04
82.23
5.50 %
95.56
95% Succ.
5.549%
4.44
89.05
84.61
82.35
78.85
6.00 %
89.42
10.58
85.86
82.42
79.04
73.28
6.50 %
86.23
13.77
83.29
79.54
74.16
66.46
7.00 %
83.92
16.08
79.41
74.66
67.71
60.58
7.50 %
80.79
80% Succ.
7.577%
19.21
75.34
68.09
60.64
55.07
8.00 %
76.10
23.90
68.71
61.39
54.63
48.31
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Feb 1924 - Jan 2024
Swipe left to see all data
Withdrawal
Rate
% Success over 20 Years
% Fail
% Success over 20 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
100.00
100.00
99.90
99.58
2.50 %
100.00
0.00
100.00
99.90
99.58
98.86
3.00 %
100.00
100% Succ.
3.380%
0.00
99.90
99.58
98.86
98.44
3.50 %
99.90
0.10
99.58
98.86
98.34
97.29
4.00 %
99.48
0.52
98.86
98.13
97.09
96.57
4.50 %
98.86
1.14
97.81
96.98
96.25
95.84
5.00 %
97.71
2.29
96.88
96.05
95.21
94.28
5.50 %
96.46
95% Succ.
5.972%
3.54
95.63
94.59
93.55
92.30
6.00 %
94.90
5.10
93.86
93.34
91.47
89.18
6.50 %
93.65
6.35
92.61
90.95
88.35
84.29
7.00 %
91.99
90% Succ.
7.342%
8.01
89.91
87.72
84.08
79.71
7.50 %
89.07
10.93
87.10
82.21
78.36
74.40
8.00 %
85.64
14.36
81.27
77.32
73.15
66.91
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Feb 1974 - Jan 2024
Swipe left to see all data
Withdrawal
Rate
% Success over 20 Years
% Fail
% Success over 20 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
100.00
100.00
100.00
100.00
2.50 %
100.00
0.00
100.00
100.00
100.00
100.00
3.00 %
100.00
0.00
100.00
100.00
100.00
100.00
3.50 %
100.00
0.00
100.00
100.00
100.00
100.00
4.00 %
100.00
0.00
100.00
100.00
100.00
100.00
4.50 %
100.00
0.00
100.00
100.00
100.00
100.00
5.00 %
100.00
0.00
100.00
100.00
100.00
100.00
5.50 %
100.00
0.00
100.00
100.00
100.00
98.34
6.00 %
100.00
0.00
100.00
100.00
98.61
94.74
6.50 %
100.00
0.00
100.00
98.89
95.57
87.81
7.00 %
100.00
100% Succ.
7.179%
0.00
98.89
95.84
89.20
85.32
7.50 %
99.17
0.83
96.40
90.03
85.60
81.44
8.00 %
96.95
3.05
90.86
86.15
81.44
74.24
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of US Small Cap Value 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 January 2024

Related Pages

Asset Class Main Page:
US Small Cap Value Asset Class

For the US Small Cap Value Asset Class, we have prepared a report for each available timeframe:
20-Year    30-Year    40-Year    50-Year    60-Year    70-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