Last Update: 30 November 2024
Do you have in mind a 20 years retirement, investing in the US Stocks/Bonds 100/0 Portfolio?
Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 3.326% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.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 99.75% of cases. In the 74.32% 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 100/0 Portfolio
Over the last 20 years (last update: November 2024), the portfolio has returned 10.63% annualized, with a maximum drawdown of -50.84%.
A safe withdrawal rate would have been 7.694%.
Timeframes ending at Nov 2024 |
Withdrawal Rate (%) |
Investment Performances |
||||
|---|---|---|---|---|---|---|
| Timeframe | Period from | Period to | Perpetual | Safe | Ann.Return(%) [ Infl.Adj. ] |
Max Drawdown(%) |
| 20 Years |
1 Dec 2004 |
30 Nov 2024 | 6.008 | 7.694 |
10.63 [ 7.89 ] |
-50.84 Nov 2007 - Feb 2009 |
For a complete view of the portfolio and all the possible strategies, please refer to US Stocks/Bonds 100/0 Portfolio page.
Withdrawal Rates Simulation (updated at Nov 2024)
How much would it be an acceptable withdrawal rate, for the US Stocks/Bonds 100/0 Portfolio?
Analyzing the available data source, all the 20-years timeframes have been considered to calculate the withdrawal rates and their success percentage.
| 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 1901 |
0.860 Jul 1901 |
1.765 Sep 1929 |
2.546 Sep 1929 |
3.326 Sep 1929 |
|
|
95% |
1.970 |
2.827 |
3.657 |
4.453 |
5.136 |
||
|
90% |
2.468 |
3.312 |
4.023 |
4.764 |
5.481 |
||
|
80% |
3.326 |
4.136 |
4.902 |
5.554 |
6.153 |
||
|
50% Median WR |
6.356 |
6.989 |
7.615 |
8.251 |
8.905 |
||
|
Only 1 case Best Period (From) |
17.252 Jul 1932 |
17.778 Jul 1932 |
18.304 Jul 1932 |
18.831 Jul 1932 |
19.357 Jul 1932 |
||
| WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj) | |||||||
|---|---|---|---|---|---|---|---|
| 100% Preserved |
75% Preserved |
50% Preserved |
25% Preserved |
0% Preserved |
|||
| Success |
100% Worst Period (From) |
0.205 Sep 1929 |
0.985 Sep 1929 |
1.765 Sep 1929 |
2.546 Sep 1929 |
3.326 Sep 1929 |
|
|
95% |
2.023 |
2.830 |
3.609 |
4.297 |
4.960 |
||
|
90% |
2.661 |
3.317 |
3.985 |
4.605 |
5.267 |
||
|
80% |
3.271 |
4.063 |
4.773 |
5.436 |
6.079 |
||
|
50% Median WR |
6.551 |
7.099 |
7.810 |
8.373 |
9.007 |
||
|
Only 1 case Best Period (From) |
17.252 Jul 1932 |
17.778 Jul 1932 |
18.304 Jul 1932 |
18.831 Jul 1932 |
19.357 Jul 1932 |
||
| WR (%) - Withdrawal Rate, on % Preserved Capital (Infl.Adj) | |||||||
|---|---|---|---|---|---|---|---|
| 100% Preserved |
75% Preserved |
50% Preserved |
25% Preserved |
0% Preserved |
|||
| Success |
100% Worst Period (From) |
2.010 Apr 2000 |
2.678 Apr 2000 |
3.346 Apr 2000 |
4.014 Apr 2000 |
4.682 Apr 2000 |
|
|
95% |
3.074 |
3.634 |
4.254 |
4.830 |
5.405 |
||
|
90% |
4.165 |
4.746 |
5.291 |
5.739 |
6.236 |
||
|
80% |
5.672 |
6.300 |
6.858 |
7.417 |
7.956 |
||
|
50% Median WR |
7.076 |
7.799 |
8.412 |
9.131 |
9.846 |
||
|
Only 1 case Best Period (From) |
13.316 Aug 1982 |
13.891 Aug 1982 |
14.466 Aug 1982 |
15.041 Aug 1982 |
15.616 Aug 1982 |
||
Withdrawals and Success Rate
If you had implemented a specific Withdrawal Strategy with the US Stocks/Bonds 100/0 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.
| 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
|
99.88
|
98.63
|
94.84
|
|
| 2.50 % |
100.00
|
0.00 |
100.00
|
99.25
|
97.64
|
89.86
|
|
| 3.00 % |
100.00
|
100% Succ. 3.326% |
0.00 |
99.75
|
98.76
|
93.10
|
83.89
|
| 3.50 % |
99.88
|
0.12 |
99.25
|
97.01
|
87.94
|
78.36
|
|
| 4.00 % |
99.75
|
0.25 |
98.51
|
90.49
|
81.65
|
74.32
|
|
| 4.50 % |
98.94
|
1.06 |
94.28
|
84.39
|
75.44
|
69.78
|
|
| 5.00 % |
96.27
|
95% Succ. 5.136% |
3.73 |
86.69
|
78.67
|
69.84
|
65.55
|
| 5.50 % |
89.80
|
10.20 |
80.47
|
71.89
|
66.98
|
61.01
|
|
| 6.00 % |
82.15
|
80% Succ. 6.153% |
17.85 |
74.50
|
67.91
|
62.56
|
54.85
|
| 6.50 % |
76.06
|
23.94 |
70.34
|
64.55
|
56.97
|
47.76
|
|
| 7.00 % |
72.45
|
27.55 |
65.73
|
58.71
|
49.56
|
39.18
|
|
| 7.50 % |
68.97
|
31.03 |
60.57
|
51.62
|
41.60
|
33.15
|
|
| 8.00 % |
62.31
|
37.69 |
53.54
|
44.84
|
33.89
|
27.86
|
|
| 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
|
99.79
|
98.86
|
95.53
|
|
| 2.50 % |
100.00
|
0.00 |
100.00
|
99.06
|
98.13
|
90.84
|
|
| 3.00 % |
100.00
|
100% Succ. 3.326% |
0.00 |
99.58
|
98.54
|
92.92
|
84.08
|
| 3.50 % |
99.79
|
0.21 |
98.75
|
96.57
|
87.72
|
77.52
|
|
| 4.00 % |
99.58
|
0.42 |
97.71
|
89.70
|
80.65
|
73.47
|
|
| 4.50 % |
98.23
|
95% Succ. 4.960% |
1.77 |
92.20
|
83.14
|
74.30
|
69.82
|
| 5.00 % |
93.96
|
90% Succ. 5.267% |
6.04 |
84.91
|
77.11
|
70.55
|
65.87
|
| 5.50 % |
86.16
|
13.84 |
78.88
|
72.74
|
67.43
|
61.91
|
|
| 6.00 % |
80.75
|
80% Succ. 6.079% |
19.25 |
74.09
|
68.26
|
63.48
|
57.23
|
| 6.50 % |
75.86
|
24.14 |
70.14
|
65.35
|
59.00
|
50.99
|
|
| 7.00 % |
72.01
|
27.99 |
66.60
|
60.56
|
51.72
|
42.46
|
|
| 7.50 % |
68.89
|
31.11 |
61.91
|
53.49
|
44.43
|
36.42
|
|
| 8.00 % |
62.23
|
37.77 |
55.36
|
47.14
|
36.84
|
31.43
|
|
| 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
|
99.72
|
|
| 3.00 % |
100.00
|
0.00 |
100.00
|
100.00
|
99.72
|
95.57
|
|
| 3.50 % |
100.00
|
0.00 |
100.00
|
99.72
|
96.95
|
92.80
|
|
| 4.00 % |
100.00
|
0.00 |
100.00
|
97.78
|
93.35
|
90.58
|
|
| 4.50 % |
100.00
|
100% Succ. 4.682% |
0.00 |
98.06
|
93.63
|
90.58
|
87.53
|
| 5.00 % |
98.34
|
95% Succ. 5.405% |
1.66 |
93.91
|
90.86
|
87.53
|
85.87
|
| 5.50 % |
94.46
|
5.54 |
90.86
|
88.09
|
85.87
|
82.27
|
|
| 6.00 % |
91.14
|
90% Succ. 6.236% |
8.86 |
87.81
|
85.60
|
82.55
|
75.62
|
| 6.50 % |
88.64
|
11.36 |
85.04
|
82.83
|
76.73
|
66.76
|
|
| 7.00 % |
85.32
|
14.68 |
83.10
|
77.84
|
68.98
|
52.35
|
|
| 7.50 % |
83.38
|
80% Succ. 7.956% |
16.62 |
78.39
|
70.64
|
57.62
|
42.11
|
| 8.00 % |
78.95
|
21.05 |
71.47
|
62.33
|
44.60
|
33.80
|
|
Related Pages
Portfolio Main Page:
US Stocks/Bonds 100/0 Portfolio
For the US Stocks/Bonds 100/0 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
