Golden Butterfly Portfolio: 70-year retirement

Last Update: 30 April 2023

Do you have in mind a 70 years retirement, investing in the Golden Butterfly Portfolio?

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

Key Points

Worst case scenario so far, over a 70-year time horizon, you could have withdrawn 2.653% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 70 years.

With a 4% withdrawal strategy, you would have lived on your investiment for 70 years in the 50.76% of cases. In the 43.68% of cases, you would have preserved your initial inflation adjusted capital.

The last 70 years of the Golden Butterfly Portfolio

Over the last 70 years (last update: April 2023), the portfolio has returned 8.97% annualized, with a maximum drawdown of -17.95%.

A safe withdrawal rate would have been 5.368%.

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 Apr 2023
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]		 Max
Drawdown(%)
70 Years 1 May 1953
 30 Apr 2023 5.218 5.368 8.97
[ 5.25 ] 		-17.95
Jan 2022 - Sep 2022
Simulations are calculated with actual returns of Golden Butterfly 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 April 2023

For a complete view of the portfolio and all the possible strategies, please refer to Golden Butterfly Portfolio page.

Withdrawal Rates Simulation (updated at Apr 2023)

How much would it be an acceptable withdrawal rate, for the Golden Butterfly Portfolio?

Analyzing the available data source, all the 70-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 - Apr 2023
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PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Minimum
Worst Period (from) 		2.357
Jul 1901 		2.431
Jul 1901 		2.505
Jul 1901 		2.579
Jul 1901 		2.653
Jul 1901 		2.874
95% Succ. 		3.051
90% Succ. 		3.219
80% Succ. 		4.025
50% Succ.
Median 3.823
 3.878
 3.936
 3.985
 4.025
Average 3.993
 4.049
 4.105
 4.161
 4.218
Maximum
Best Period (from) 		7.131
Jun 1920 		7.175
Jun 1920 		7.219
Jun 1920 		7.264
Jun 1920 		7.308
Jun 1920
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 2.357
 2.613
 2.791
 2.964
 3.823
75% 2.431
 2.682
 2.856
 3.028
 3.878
50% 2.505
 2.745
 2.915
 3.091
 3.936
25% 2.579
 2.808
 2.988
 3.155
 3.985
0% 2.653
 2.874
 3.051
 3.219
 4.025
Period: May 1923 - Apr 2023
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PWR (%) - Perpetual Withdrawal Rate
SWR (%) - Safe Withdrawal Rate
Preserved Capital 100% 75% 50% 25% 0% 0% 0% 0% 0%
Success Rate 100% 100% 100% 100% 100% 95% 90% 80% 50%
Minimum
Worst Period (from) 		2.963
Feb 1937 		2.999
Feb 1937 		3.034
Feb 1937 		3.069
Feb 1937 		3.105
Feb 1937 		3.429
95% Succ. 		3.597
90% Succ. 		3.792
80% Succ. 		4.470
50% Succ.
Median 4.337
 4.369
 4.400
 4.439
 4.470
Average 4.369
 4.406
 4.443
 4.480
 4.516
Maximum
Best Period (from) 		6.883
Jul 1932 		6.925
Jul 1932 		6.967
Jul 1932 		7.009
Jul 1932 		7.051
Jul 1932
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 2.963
 3.284
 3.443
 3.652
 4.337
75% 2.999
 3.320
 3.482
 3.687
 4.369
50% 3.034
 3.356
 3.520
 3.722
 4.400
25% 3.069
 3.392
 3.558
 3.757
 4.439
0% 3.105
 3.429
 3.597
 3.792
 4.470
Simulations are calculated with actual returns of Golden Butterfly 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 April 2023

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the Golden Butterfly Portfolio, over 70 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 70-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Apr 2023
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Withdrawal
Rate
70 Years
% Fail
% Success over 70 Years - on % Preserved Capital
% Success Percentile No Capital
Preserved		 0%
Preserved 		25%
Preserved 		50%
Preserved 		75%
Preserved 		100%
Preserved
2.00 %
100.00
0.00
100.00
100.00
100.00
100.00
100.00
2.50 %
100.00
100% Succ.
2.653% 		0.00
100.00
100.00
100.00
99.80
98.99
3.00 %
92.32
90% Succ.
3.051% 		7.68
92.32
88.98
85.24
81.80
78.26
3.50 %
66.84
33.16
66.84
63.90
61.78
59.45
57.63
4.00 %
50.76
50% Succ.
4.025% 		49.24
50.76
49.54
48.23
46.01
43.68
4.50 %
35.89
64.11
35.89
34.48
33.47
32.36
31.85
5.00 %
25.08
74.92
25.08
23.76
23.05
21.74
21.13
5.50 %
15.27
84.73
15.27
14.16
13.14
11.53
10.52
6.00 %
6.77
93.23
6.77
5.56
4.25
3.64
3.34
6.50 %
2.02
97.98
2.02
2.02
2.02
1.82
1.52
7.00 %
0.71
99.29
0.71
0.51
0.30
0.30
0.30
7.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
8.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: May 1923 - Apr 2023
Swipe left to see all data
Withdrawal
Rate
70 Years
% Fail
% Success over 70 Years - on % Preserved Capital
% Success Percentile No Capital
Preserved		 0%
Preserved 		25%
Preserved 		50%
Preserved 		75%
Preserved 		100%
Preserved
2.00 %
100.00
0.00
100.00
100.00
100.00
100.00
100.00
2.50 %
100.00
0.00
100.00
100.00
100.00
100.00
100.00
3.00 %
100.00
100% Succ.
3.105% 		0.00
100.00
100.00
100.00
99.72
99.17
3.50 %
93.35
90% Succ.
3.597% 		6.65
93.35
91.69
90.86
89.20
87.53
4.00 %
71.47
50% Succ.
4.470% 		28.53
71.47
69.53
67.59
64.54
62.88
4.50 %
48.48
51.52
48.48
47.65
47.09
45.98
44.88
5.00 %
27.98
72.02
27.98
25.48
24.10
21.61
19.94
5.50 %
9.97
90.03
9.97
8.86
8.03
7.20
6.37
6.00 %
2.49
97.51
2.49
1.94
0.83
0.83
0.83
6.50 %
0.55
99.45
0.55
0.55
0.55
0.55
0.55
7.00 %
0.55
99.45
0.55
0.28
0.00
0.00
0.00
7.50 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
8.00 %
0.00
100.00
0.00
0.00
0.00
0.00
0.00
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of Golden Butterfly 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 April 2023

Related Pages

Portfolio Main Page:
Golden Butterfly Portfolio

For the Golden Butterfly Portfolio, 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

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