Desert Portfolio: 20-year retirement

Last Update: 31 October 2024

Do you have in mind a 20 years retirement, investing in the Gyroscopic Investing Desert Portfolio?

Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 4.557% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.

With a 4% withdrawal strategy, you would have lived on your investiment for 20 years in the 100% of cases. In the 38.46% 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 20 years of the Gyroscopic Investing Desert Portfolio

Over the last 20 years (last update: October 2024), the portfolio has returned 6.06% annualized, with a maximum drawdown of -14.7%.

A safe withdrawal rate would have been 7.149%.

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 Oct 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]		 Max
Drawdown(%)
20 Years 1 Nov 2004
 31 Oct 2024 3.503 7.149 6.06
[ 3.42 ] 		-14.70
Jan 2022 - Sep 2022
Simulations are calculated with actual returns of Gyroscopic Investing Desert 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 October 2024

For a complete view of the portfolio and all the possible strategies, please refer to Gyroscopic Investing Desert Portfolio page.

Withdrawal Rates Simulation (updated at Oct 2024)

How much would it be an acceptable withdrawal rate, for the Gyroscopic Investing Desert Portfolio?

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 - Oct 2024
Period: Nov 1924 - Oct 2024
Period: Nov 1974 - Oct 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
Aug 1898 		0.259
Jul 1901 		1.826
Jul 1901 		3.392
Jul 1901 		4.557
Apr 1911
95%
 0.715
 1.902
 3.004
 4.093
 5.065
90%
 1.344
 2.346
 3.329
 4.295
 5.243
80%
 1.933
 2.875
 3.824
 4.672
 5.603
50%
Median WR 		3.470
 4.382
 5.301
 6.209
 7.121
Only 1 case
Best Period (From) 		9.192
Jul 1920 		9.812
Jul 1920 		10.432
Jul 1920 		11.052
Jul 1920 		11.690
Jun 1920
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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) 		0.759
Oct 1961 		2.003
Mar 1937 		3.002
Mar 1937 		4.000
Mar 1937 		4.997
Feb 1937
95%
 1.404
 2.414
 3.409
 4.379
 5.300
90%
 1.674
 2.652
 3.626
 4.603
 5.513
80%
 2.051
 3.080
 4.088
 4.958
 5.868
50%
Median WR 		3.490
 4.415
 5.315
 6.237
 7.121
Only 1 case
Best Period (From) 		8.497
Jul 1982 		9.190
Jul 1982 		9.884
Jul 1982 		10.578
Jul 1982 		11.272
Jul 1982
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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) 		3.079
Nov 2003 		4.095
Jan 1999 		4.946
Feb 1999 		5.792
Feb 1999 		6.639
Feb 1999
95%
 3.485
 4.368
 5.240
 6.095
 6.953
90%
 3.621
 4.499
 5.375
 6.218
 7.059
80%
 4.020
 4.835
 5.654
 6.497
 7.281
50%
Median WR 		4.956
 5.683
 6.442
 7.166
 7.923
Only 1 case
Best Period (From) 		8.497
Jul 1982 		9.190
Jul 1982 		9.884
Jul 1982 		10.578
Jul 1982 		11.272
Jul 1982
Simulations are calculated with actual returns of Gyroscopic Investing Desert 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 October 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the Gyroscopic Investing Desert Portfolio, 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 - Oct 2024
Period: Nov 1924 - Oct 2024
Period: Nov 1974 - Oct 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
93.78
78.16
2.50 %
100.00
0.00
100.00
98.38
87.37
68.26
3.00 %
100.00
0.00
100.00
95.15
77.91
59.74
3.50 %
100.00
0.00
99.88
86.25
64.72
49.04
4.00 %
100.00
0.00
96.45
75.86
58.18
38.46
4.50 %
100.00
100% Succ.
4.557% 		0.00
85.19
62.73
46.55
34.29
5.00 %
96.52
95% Succ.
5.065% 		3.48
72.56
56.25
36.65
26.01
5.50 %
82.89
80% Succ.
5.603% 		17.11
61.42
44.43
31.11
19.10
6.00 %
71.00
29.00
55.26
34.79
22.53
15.06
6.50 %
60.49
39.51
41.69
26.82
17.17
9.46
7.00 %
53.14
50% Succ.
7.121% 		46.86
31.43
19.35
11.20
6.53
7.50 %
38.33
61.67
23.40
14.13
7.41
4.36
8.00 %
28.06
71.94
16.43
8.71
5.04
1.93
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
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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
81.06
2.50 %
100.00
0.00
100.00
100.00
93.13
70.34
3.00 %
100.00
0.00
100.00
100.00
82.10
61.29
3.50 %
100.00
0.00
100.00
93.13
67.12
49.64
4.00 %
100.00
0.00
100.00
81.79
60.04
35.90
4.50 %
100.00
100% Succ.
4.997% 		0.00
92.30
65.76
46.41
30.49
5.00 %
99.79
95% Succ.
5.300% 		0.21
78.77
57.23
33.82
21.44
5.50 %
90.32
90% Succ.
5.513% 		9.68
63.89
43.50
26.22
13.22
6.00 %
75.34
24.66
56.09
31.32
17.27
9.78
6.50 %
62.75
37.25
39.85
21.64
11.34
4.16
7.00 %
53.28
50% Succ.
7.121% 		46.72
27.06
13.32
5.31
2.19
7.50 %
35.90
64.10
18.00
8.22
2.81
1.25
8.00 %
23.41
76.59
10.30
3.43
1.56
0.52
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
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
93.91
4.00 %
100.00
0.00
100.00
100.00
100.00
80.06
4.50 %
100.00
0.00
100.00
100.00
89.75
70.64
5.00 %
100.00
0.00
100.00
99.45
76.18
48.48
5.50 %
100.00
0.00
100.00
85.87
59.28
29.09
6.00 %
100.00
0.00
98.61
69.25
37.67
21.61
6.50 %
100.00
100% Succ.
6.639% 		0.00
78.95
47.37
24.10
11.08
7.00 %
91.97
90% Succ.
7.059% 		8.03
57.34
27.42
13.30
5.82
7.50 %
68.42
50% Succ.
7.923% 		31.58
37.12
16.62
7.48
3.32
8.00 %
47.09
52.91
19.67
9.14
4.16
1.39
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of Gyroscopic Investing Desert 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 October 2024

Related Pages

Portfolio Main Page:
Gyroscopic Investing Desert Portfolio

For the Gyroscopic Investing Desert Portfolio, 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