Three Funds Portfolio: 10-year retirement

Last Update: 30 November 2024

Do you have in mind a 10 years retirement, investing in the Bogleheads Three Funds Portfolio?

Worst case scenario so far, over a 10-year time horizon, you could have withdrawn 8.624% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 10 years.

With a 4% withdrawal strategy, you would have lived on your investiment for 10 years in the 100% of cases. In the 81.91% of cases, you would have preserved your initial inflation adjusted capital.

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

The last 10 years of the Bogleheads Three Funds Portfolio

Over the last 10 years (last update: November 2024), the portfolio has returned 8.33% annualized, with a maximum drawdown of -23.16%.

A safe withdrawal rate would have been 12.239%.

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 portfolio didn't run out of money during retirement. The portfolio went to zero exaclty at the end of the retirement period.

Learn more about Withdrawal Rate simulation
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Timeframes ending at Nov 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]		 Max
Drawdown(%)
10 Years 1 Dec 2014
 30 Nov 2024 4.893 12.239 8.33
[ 5.24 ] 		-23.16
Jan 2022 - Sep 2022
Simulations are calculated with actual returns of Bogleheads Three Funds Portfolio | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Portfolio is rebalanced each month | Inflation is updated at November 2024

For a complete view of the portfolio and all the possible strategies, please refer to Bogleheads Three Funds Portfolio page.

Withdrawal Rates Simulation (updated at Nov 2024)

How much would it be an acceptable withdrawal rate, for the Bogleheads Three Funds Portfolio?

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: Dec 1974 - Nov 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
Nov 1998 		0.376
Mar 1999 		3.729
Mar 1999 		6.444
Apr 2000 		8.624
Apr 2000
95%
 1.020
 3.110
 5.539
 7.774
 9.918
90%
 2.905
 4.842
 6.718
 8.669
 10.725
80%
 4.310
 6.125
 7.987
 9.807
 11.595
50%
Median WR 		6.058
 7.941
 9.882
 11.579
 13.341
Only 1 case
Best Period (From) 		15.363
Aug 1982 		16.967
Aug 1982 		18.572
Aug 1982 		20.177
Aug 1982 		21.782
Aug 1982
Simulations are calculated with actual returns of Bogleheads Three Funds Portfolio | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Portfolio is rebalanced each month | Inflation is updated at November 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the Bogleheads Three Funds Portfolio, 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: Dec 1974 - Nov 2024
Swipe left to see all data
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
100.00
100.00
97.92
94.18
2.50 %
100.00
0.00
100.00
100.00
96.05
93.56
3.00 %
100.00
0.00
100.00
100.00
95.01
88.57
3.50 %
100.00
0.00
100.00
100.00
94.80
85.65
4.00 %
100.00
0.00
100.00
99.38
94.18
81.91
4.50 %
100.00
0.00
100.00
97.71
93.56
76.72
5.00 %
100.00
0.00
100.00
95.43
87.73
68.40
5.50 %
100.00
0.00
100.00
95.01
85.45
57.80
6.00 %
100.00
0.00
100.00
94.18
81.70
50.52
6.50 %
100.00
0.00
99.58
92.10
76.51
45.11
7.00 %
100.00
0.00
97.30
88.15
67.36
37.63
7.50 %
100.00
0.00
95.43
84.82
56.55
28.69
8.00 %
100.00
0.00
94.18
79.63
49.06
24.32
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of Bogleheads Three Funds Portfolio | Preserved capital and withdrawals are considered adjusted for inflation | Withdrawals happen monthly | Performances are calculated in USD dollars, considering reinvestment of dividends when applicable | Portfolio is rebalanced each month | Inflation is updated at November 2024

Related Pages

Portfolio Main Page:
Bogleheads Three Funds Portfolio

For the Bogleheads Three Funds Portfolio, we have prepared a report for each available timeframe:
10-Year    20-Year    30-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