US Stocks/Bonds 10/90 Portfolio: 20-year retirement

Last Update: 31 May 2024

Do you have in mind a 20 years retirement, investing in the US Stocks/Bonds 10/90 Portfolio?

Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 4.145% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.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 29.84% 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 US Stocks/Bonds 10/90 Portfolio

Over the last 20 years (last update: May 2024), the portfolio has returned 3.77% annualized, with a maximum drawdown of -16.14%.

A safe withdrawal rate would have been 6.278%.

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 May 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]
Max
Drawdown(%)
20 Years 1 Jun 2004
31 May 2024 1.308 6.278 3.77
[ 1.17 ]
-16.14
Sep 2021 - Oct 2022
Simulations are calculated with actual returns of US Stocks/Bonds 10/90 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 May 2024

For a complete view of the portfolio and all the possible strategies, please refer to US Stocks/Bonds 10/90 Portfolio page.

Withdrawal Rates Simulation (updated at May 2024)

How much would it be an acceptable withdrawal rate, for the US Stocks/Bonds 10/90 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 - May 2024
Period: Jun 1924 - May 2024
Period: Jun 1974 - May 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
Jul 1897
0.000
Jun 1900
1.689
Jul 1900
3.002
Aug 1939
4.145
Jan 1941
95%
0.000
0.842
2.185
3.550
4.690
90%
0.026
1.275
2.511
3.681
4.820
80%
0.553
1.679
2.838
3.984
5.062
50%
Median WR
2.455
3.276
4.198
5.223
6.283
Only 1 case
Best Period (From)
8.819
Oct 1981
9.476
Oct 1981
10.134
Oct 1981
10.792
Oct 1981
11.450
Oct 1981
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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
May 1933
0.315
Oct 1961
1.768
Aug 1939
3.002
Aug 1939
4.145
Jan 1941
95%
0.000
0.862
2.160
3.426
4.503
90%
0.000
1.192
2.412
3.644
4.735
80%
0.460
1.565
2.672
3.878
4.985
50%
Median WR
1.963
2.990
3.996
5.029
6.090
Only 1 case
Best Period (From)
8.819
Oct 1981
9.476
Oct 1981
10.134
Oct 1981
10.792
Oct 1981
11.450
Oct 1981
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)
0.933
Nov 2003
2.238
Nov 2003
3.543
Nov 2003
4.810
Apr 2004
6.035
Apr 2004
95%
1.476
2.690
3.903
5.118
6.292
90%
2.501
3.491
4.455
5.421
6.384
80%
2.968
3.903
4.840
5.692
6.500
50%
Median WR
4.159
4.986
5.838
6.649
7.449
Only 1 case
Best Period (From)
8.819
Oct 1981
9.476
Oct 1981
10.134
Oct 1981
10.792
Oct 1981
11.450
Oct 1981
Simulations are calculated with actual returns of US Stocks/Bonds 10/90 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 May 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the US Stocks/Bonds 10/90 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 - May 2024
Period: Jun 1924 - May 2024
Period: Jun 1974 - May 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
97.13
74.72
55.68
2.50 %
100.00
0.00
100.00
90.14
64.73
49.38
3.00 %
100.00
0.00
100.00
77.53
54.56
40.39
3.50 %
100.00
0.00
95.69
65.42
47.82
35.58
4.00 %
100.00
100% Succ.
4.145%
0.00
79.21
52.87
41.45
29.84
4.50 %
96.88
95% Succ.
4.690%
3.12
63.36
47.13
33.46
24.34
5.00 %
81.65
80% Succ.
5.062%
18.35
53.37
40.89
28.15
17.42
5.50 %
66.10
33.90
47.57
31.96
22.10
12.98
6.00 %
54.31
50% Succ.
6.283%
45.69
39.01
25.97
15.23
11.11
6.50 %
45.76
54.24
31.84
19.73
11.67
8.86
7.00 %
39.14
60.86
24.66
13.67
9.55
5.99
7.50 %
30.46
69.54
17.48
10.49
7.05
4.18
8.00 %
23.28
76.72
12.11
7.99
4.74
2.56
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
96.88
70.03
49.53
2.50 %
100.00
0.00
100.00
88.14
60.35
44.12
3.00 %
100.00
0.00
100.00
75.44
49.53
35.17
3.50 %
100.00
0.00
93.76
61.81
43.08
31.63
4.00 %
100.00
100% Succ.
4.145%
0.00
77.00
49.84
36.63
24.14
4.50 %
95.01
95% Succ.
4.503%
4.99
63.27
42.14
28.82
16.96
5.00 %
79.50
20.50
51.09
36.11
22.06
10.30
5.50 %
67.01
32.99
42.98
26.43
14.46
7.70
6.00 %
52.76
50% Succ.
6.090%
47.24
33.30
19.56
8.53
6.97
6.50 %
40.27
59.73
27.26
12.49
6.97
4.68
7.00 %
33.30
66.70
18.31
7.60
5.52
2.91
7.50 %
26.12
73.88
10.72
6.66
3.54
1.87
8.00 %
17.07
82.93
6.76
4.16
2.19
0.83
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
92.80
2.50 %
100.00
0.00
100.00
100.00
97.23
90.03
3.00 %
100.00
0.00
100.00
100.00
92.80
79.22
3.50 %
100.00
0.00
100.00
100.00
89.47
73.41
4.00 %
100.00
0.00
100.00
94.18
78.12
55.68
4.50 %
100.00
0.00
100.00
88.92
65.37
37.95
5.00 %
100.00
0.00
97.23
75.62
49.58
24.93
5.50 %
100.00
0.00
88.37
58.17
31.30
20.50
6.00 %
100.00
100% Succ.
6.035%
0.00
66.76
42.66
21.88
18.56
6.50 %
80.06
80% Succ.
6.500%
19.94
53.19
26.04
18.56
12.47
7.00 %
64.54
50% Succ.
7.449%
35.46
38.23
20.22
14.68
7.76
7.50 %
48.75
51.25
21.33
17.73
9.42
4.99
8.00 %
30.47
69.53
18.01
11.08
5.82
2.22
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Simulations are calculated with actual returns of US Stocks/Bonds 10/90 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 May 2024

Related Pages

Portfolio Main Page:
US Stocks/Bonds 10/90 Portfolio

For the US Stocks/Bonds 10/90 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