US Stocks/Bonds 20/80 Portfolio: 20-year retirement

Last Update: 28 February 2023

Do you have in mind a 20 years retirement, investing in the US Stocks/Bonds 20/80 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Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 4.601% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.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 35.35% of cases, you would have preserved your initial inflation adjusted capital.

The last 20 years of the US Stocks/Bonds 20/80 Portfolio

Over the last 20 years (last update: February 2023), the portfolio has returned 4.56% annualized, with a maximum drawdown of -16.54%.

A safe withdrawal rate would have been 6.744%.

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(%)
20 Years 1 Mar 2003
 28 Feb 2023 2.227 6.744 4.56
[ 2.02 ] 		-16.54
Jan 2022 - Sep 2022
Simulations are calculated with actual returns of US Stocks/Bonds 20/80 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 20/80 Portfolio page.

Withdrawal Rates Simulation (updated at Feb 2023)

How much would it be an acceptable withdrawal rate, for the US Stocks/Bonds 20/80 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 - 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
Aug 1898 		0.207
Jul 1900 		1.967
May 1901 		3.498
May 1901 		4.601
Apr 1911 		4.896
95% Succ. 		5.037
90% Succ. 		5.294
80% Succ. 		6.638
50% Succ.
Median 2.889
 3.838
 4.772
 5.702
 6.638
Average 3.310
 4.201
 5.117
 6.033
 6.949
Maximum
Best Period (from) 		9.204
Oct 1981 		9.832
Oct 1981 		10.461
Oct 1981 		11.089
Oct 1981 		11.717
Oct 1981
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 0.000
 0.360
 0.696
 1.225
 2.889
75% 0.207
 1.531
 1.823
 2.328
 3.838
50% 1.967
 2.701
 2.934
 3.338
 4.772
25% 3.498
 3.870
 4.020
 4.326
 5.702
0% 4.601
 4.896
 5.037
 5.294
 6.638
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
Apr 1960 		0.714
Oct 1961 		2.281
Oct 1961 		3.598
Jan 1940 		4.646
Jan 1941 		4.860
95% Succ. 		4.993
90% Succ. 		5.303
80% Succ. 		6.573
50% Succ.
Median 2.802
 3.773
 4.715
 5.637
 6.573
Average 3.055
 3.985
 4.923
 5.861
 6.799
Maximum
Best Period (from) 		9.204
Oct 1981 		9.832
Oct 1981 		10.461
Oct 1981 		11.089
Oct 1981 		11.717
Oct 1981
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 0.000
 0.515
 0.728
 1.196
 2.802
75% 0.714
 1.628
 1.829
 2.315
 3.773
50% 2.281
 2.740
 2.936
 3.371
 4.715
25% 3.598
 3.848
 4.004
 4.351
 5.637
0% 4.646
 4.860
 4.993
 5.303
 6.573
Period: Mar 1973 - 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) 		2.138
Jan 2003 		3.265
Jan 2003 		4.137
Mar 1973 		4.774
Mar 1973 		5.411
Mar 1973 		6.413
95% Succ. 		6.482
90% Succ. 		6.647
80% Succ. 		7.756
50% Succ.
Median 4.593
 5.392
 6.206
 6.972
 7.756
Average 4.803
 5.573
 6.343
 7.113
 7.883
Maximum
Best Period (from) 		9.204
Oct 1981 		9.832
Oct 1981 		10.461
Oct 1981 		11.089
Oct 1981 		11.717
Oct 1981
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Key
Withdrawal
Rates (%) 		Success Rate
100% 95% 90% 80% 50%
Preserved Capital 100% 2.138
 2.780
 2.978
 3.294
 4.593
75% 3.265
 3.657
 3.830
 4.078
 5.392
50% 4.137
 4.538
 4.690
 4.889
 6.206
25% 4.774
 5.524
 5.588
 5.769
 6.972
0% 5.411
 6.413
 6.482
 6.647
 7.756
Simulations are calculated with actual returns of US Stocks/Bonds 20/80 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 20/80 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 - Feb 2023
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Withdrawal
Rate
20 Years
% Fail
% Success over 20 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
99.87
85.70
66.41
2.50 %
100.00
0.00
100.00
100.00
97.67
75.93
59.11
3.00 %
100.00
0.00
100.00
100.00
88.15
65.41
47.20
3.50 %
100.00
0.00
100.00
99.94
74.35
55.83
39.32
4.00 %
100.00
0.00
100.00
90.61
62.38
45.87
35.35
4.50 %
100.00
100% Succ.
4.601% 		0.00
100.00
73.16
54.69
38.75
29.87
5.00 %
91.37
90% Succ.
5.037% 		8.63
91.37
61.44
45.68
32.39
22.68
5.50 %
72.09
27.91
72.09
54.63
37.93
27.47
17.83
6.00 %
63.39
36.61
63.39
45.18
30.50
20.10
13.04
6.50 %
53.43
50% Succ.
6.638% 		46.57
53.43
36.61
24.57
15.25
10.96
7.00 %
42.97
57.03
42.97
28.92
18.46
11.28
8.32
7.50 %
35.79
64.21
35.79
21.74
12.92
9.20
5.80
8.00 %
26.91
73.09
26.91
16.26
10.02
6.74
3.59
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Mar 1923 - Feb 2023
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Withdrawal
Rate
20 Years
% Fail
% Success over 20 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
86.37
63.68
2.50 %
100.00
0.00
100.00
100.00
99.06
74.61
56.71
3.00 %
100.00
0.00
100.00
100.00
87.51
63.16
42.77
3.50 %
100.00
0.00
100.00
100.00
74.09
55.05
35.17
4.00 %
100.00
0.00
100.00
90.11
61.50
41.10
32.57
4.50 %
100.00
100% Succ.
4.646% 		0.00
100.00
75.03
54.11
34.96
25.08
5.00 %
89.70
80% Succ.
5.303% 		10.30
89.70
61.81
41.00
28.62
16.86
5.50 %
73.26
26.74
73.26
54.32
34.13
22.27
12.70
6.00 %
64.62
35.38
64.62
40.58
26.33
14.78
8.32
6.50 %
52.76
50% Succ.
6.573% 		47.24
52.76
32.78
19.15
10.51
6.87
7.00 %
37.46
62.54
37.46
24.56
13.42
6.97
4.27
7.50 %
32.67
67.33
32.67
16.75
8.43
5.10
2.81
8.00 %
23.00
77.00
23.00
11.55
5.83
3.33
1.66
Legend: Min% of Protected Capital
Min 0%
Min 25%
Min 50%
Min 75%
Min 100%
Period: Mar 1973 - Feb 2023
Swipe left to see all data
Withdrawal
Rate
20 Years
% Fail
% Success over 20 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
97.23
3.00 %
100.00
0.00
100.00
100.00
100.00
100.00
89.47
3.50 %
100.00
0.00
100.00
100.00
100.00
97.23
77.56
4.00 %
100.00
0.00
100.00
100.00
100.00
81.16
71.75
4.50 %
100.00
0.00
100.00
100.00
95.57
76.73
53.46
5.00 %
100.00
100% Succ.
5.411% 		0.00
100.00
98.61
78.95
61.22
33.24
5.50 %
99.45
0.55
99.45
95.29
70.36
45.98
24.93
6.00 %
96.68
95% Succ.
6.413% 		3.32
96.68
76.73
54.29
27.70
21.33
6.50 %
89.20
80% Succ.
6.647% 		10.80
89.20
62.88
37.40
21.88
18.28
7.00 %
67.04
32.96
67.04
49.31
24.38
18.56
11.36
7.50 %
58.73
50% Succ.
7.756% 		41.27
58.73
31.02
19.94
13.57
7.48
8.00 %
42.38
57.62
42.38
20.50
15.51
8.86
4.43
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 20/80 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 20/80 Portfolio

For the US Stocks/Bonds 20/80 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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