US Stocks/Bonds 10/90 Portfolio: 40-year retirement

Last Update: 28 February 2023

Do you have in mind a 40 years retirement, investing in the US Stocks/Bonds 10/90 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Worst case scenario so far, over a 40-year time horizon, you could have withdrawn 2.255% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 40 years.

With a 4% withdrawal strategy, you would have lived on your investiment for 40 years in the 36.3% of cases. In the 12.25% of cases, you would have preserved your initial inflation adjusted capital.

The last 40 years of the US Stocks/Bonds 10/90 Portfolio

Over the last 40 years (last update: February 2023), the portfolio has returned 6.5% annualized, with a maximum drawdown of -16.14%.

A safe withdrawal rate would have been 6.181%.

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 Feb 2023
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]		 Max
Drawdown(%)
40 Years 1 Mar 1983
 28 Feb 2023 4.661 6.181 6.50
[ 3.57 ] 		-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 January 2023

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 Feb 2023)

How much would it be an acceptable withdrawal rate, for the US Stocks/Bonds 10/90 Portfolio?

Analyzing the available data source, all the 40-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 - Feb 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) 		0.000
Nov 1938 		0.071
Sep 1941 		0.823
Sep 1941 		1.553
Aug 1941 		2.255
Jan 1941 		2.524
95% Succ. 		2.707
90% Succ. 		3.150
80% Succ. 		3.502
50% Succ.
Median 2.280
 2.579
 2.869
 3.188
 3.502
Average 2.494
 2.867
 3.249
 3.631
 4.013
Maximum
Best Period (from) 		7.033
Mar 1873 		7.333
Mar 1873 		7.633
Mar 1873 		7.937
Feb 1873 		8.243
Feb 1873
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 0.000
 0.322
 0.644
 1.677
 2.280
75% 0.071
 0.892
 1.090
 2.069
 2.579
50% 0.823
 1.453
 1.605
 2.455
 2.869
25% 1.553
 1.991
 2.183
 2.815
 3.188
0% 2.255
 2.524
 2.707
 3.150
 3.502
Period: Mar 1923 - Feb 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) 		0.000
Nov 1938 		0.071
Sep 1941 		0.823
Sep 1941 		1.553
Aug 1941 		2.255
Jan 1941 		2.397
95% Succ. 		2.537
90% Succ. 		2.797
80% Succ. 		3.380
50% Succ.
Median 2.319
 2.580
 2.829
 3.103
 3.380
Average 2.237
 2.595
 2.970
 3.344
 3.719
Maximum
Best Period (from) 		6.993
Oct 1981 		7.275
Oct 1981 		7.557
Oct 1981 		7.839
Oct 1981 		8.120
Oct 1981
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 0.000
 0.000
 0.333
 0.689
 2.319
75% 0.071
 0.567
 0.904
 1.197
 2.580
50% 0.823
 1.187
 1.464
 1.661
 2.829
25% 1.553
 1.804
 1.996
 2.224
 3.103
0% 2.255
 2.397
 2.537
 2.797
 3.380
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 January 2023

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the US Stocks/Bonds 10/90 Portfolio, over 40 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 40-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Feb 2023
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Withdrawal
Rate
40 Years
% Fail
% Success over 40 Years - on % Preserved Capital
% Success Percentile No Capital
Preserved		 0%
Preserved 		25%
Preserved 		50%
Preserved 		75%
Preserved 		100%
Preserved
2.00 %
100.00
100% Succ.
2.255% 		0.00
100.00
94.28
87.82
84.41
66.15
2.50 %
95.47
95% Succ.
2.524% 		4.53
95.47
87.53
76.99
55.83
35.12
3.00 %
84.93
80% Succ.
3.150% 		15.07
84.93
66.59
43.50
32.81
23.53
3.50 %
50.26
50% Succ.
3.502% 		49.74
50.26
39.57
30.51
22.12
16.78
4.00 %
36.30
63.70
36.30
28.88
21.46
15.74
12.25
4.50 %
28.29
71.71
28.29
19.60
13.36
11.51
10.10
5.00 %
18.04
81.96
18.04
12.77
11.06
9.21
7.65
5.50 %
12.47
87.53
12.47
10.17
8.69
7.05
5.94
6.00 %
9.65
90.35
9.65
8.09
6.31
5.49
4.45
6.50 %
7.05
92.95
7.05
5.86
4.83
3.27
2.00
7.00 %
4.97
95.03
4.97
3.64
2.23
1.11
0.15
7.50 %
2.75
97.25
2.75
1.56
0.37
0.00
0.00
8.00 %
0.59
99.41
0.59
0.00
0.00
0.00
0.00
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Mar 1923 - Feb 2023
Swipe left to see all data
Withdrawal
Rate
40 Years
% Fail
% Success over 40 Years - on % Preserved Capital
% Success Percentile No Capital
Preserved		 0%
Preserved 		25%
Preserved 		50%
Preserved 		75%
Preserved 		100%
Preserved
2.00 %
100.00
100% Succ.
2.255% 		0.00
100.00
89.32
77.25
73.23
62.55
2.50 %
91.54
90% Succ.
2.537% 		8.46
91.54
76.70
69.90
56.59
33.98
3.00 %
76.01
50% Succ.
3.380% 		23.99
76.01
64.08
38.42
30.10
20.53
3.50 %
42.72
57.28
42.72
33.84
25.24
17.75
14.84
4.00 %
29.82
70.18
29.82
22.19
16.64
13.04
8.74
4.50 %
21.50
78.50
21.50
13.73
8.74
7.91
6.93
5.00 %
9.71
90.29
9.71
8.04
7.21
5.96
4.99
5.50 %
7.35
92.65
7.35
6.10
5.55
4.58
3.88
6.00 %
5.69
94.31
5.69
4.85
4.02
3.61
2.91
6.50 %
4.16
95.84
4.16
3.74
3.05
1.80
0.55
7.00 %
3.33
96.67
3.33
2.22
0.69
0.28
0.00
7.50 %
1.39
98.61
1.39
0.42
0.28
0.00
0.00
8.00 %
0.28
99.72
0.28
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 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 January 2023

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:
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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