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

Last Update: 30 April 2024

Do you have in mind a 20 years retirement, investing in the US Stocks/Bonds 20/80 Portfolio?

Worst case scenario so far, over a 20-year time horizon, you could have withdrawn 4.601% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 20 years.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 35.04% 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 20/80 Portfolio

Over the last 20 years (last update: April 2024), the portfolio has returned 4.44% annualized, with a maximum drawdown of -16.54%.

A safe withdrawal rate would have been 6.507%.

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 Apr 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]
Max
Drawdown(%)
20 Years 1 May 2004
30 Apr 2024 1.957 6.507 4.44
[ 1.80 ]
-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 April 2024

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 Apr 2024)

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 - Apr 2024
Period: May 1924 - Apr 2024
Period: May 1974 - Apr 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
Aug 1898
0.207
Jul 1900
1.967
May 1901
3.498
May 1901
4.601
Apr 1911
95%
0.360
1.536
2.707
3.871
4.899
90%
0.701
1.825
2.938
4.021
5.038
80%
1.233
2.332
3.342
4.341
5.294
50%
Median WR
2.881
3.823
4.760
5.691
6.633
Only 1 case
Best Period (From)
9.204
Oct 1981
9.832
Oct 1981
10.461
Oct 1981
11.089
Oct 1981
11.717
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)
0.000
Apr 1960
0.714
Oct 1961
2.281
Oct 1961
3.598
Jan 1940
4.646
Jan 1941
95%
0.515
1.628
2.740
3.848
4.860
90%
0.728
1.829
2.936
4.004
4.993
80%
1.196
2.315
3.371
4.351
5.303
50%
Median WR
2.746
3.686
4.631
5.585
6.551
Only 1 case
Best Period (From)
9.204
Oct 1981
9.832
Oct 1981
10.461
Oct 1981
11.089
Oct 1981
11.717
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)
1.693
Nov 2003
2.876
Nov 2003
4.060
Nov 2003
5.187
Mar 2004
6.292
Mar 2004
95%
2.308
3.396
4.478
5.524
6.452
90%
2.820
3.733
4.665
5.595
6.512
80%
3.172
4.013
4.878
5.769
6.648
50%
Median WR
4.593
5.392
6.206
6.972
7.756
Only 1 case
Best Period (From)
9.204
Oct 1981
9.832
Oct 1981
10.461
Oct 1981
11.089
Oct 1981
11.717
Oct 1981
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 April 2024

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 - Apr 2024
Period: May 1924 - Apr 2024
Period: May 1974 - Apr 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
99.88
85.82
66.08
2.50 %
100.00
0.00
100.00
97.69
76.14
58.59
3.00 %
100.00
0.00
100.00
88.26
65.52
46.78
3.50 %
100.00
0.00
99.94
74.58
55.34
38.98
4.00 %
100.00
0.00
90.69
62.71
45.47
35.04
4.50 %
100.00
100% Succ.
4.601%
0.00
73.39
54.28
38.41
29.61
5.00 %
91.44
90% Succ.
5.038%
8.56
61.77
45.28
32.10
22.49
5.50 %
72.33
27.67
54.28
37.60
27.23
17.68
6.00 %
63.71
36.29
44.78
30.23
19.93
12.93
6.50 %
53.28
50% Succ.
6.633%
46.72
36.29
24.36
15.12
10.87
7.00 %
42.60
57.40
28.67
18.30
11.18
8.24
7.50 %
35.48
64.52
21.55
12.80
9.12
5.75
8.00 %
26.67
73.33
16.11
9.93
6.68
3.56
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
100.00
86.37
62.64
2.50 %
100.00
0.00
100.00
99.06
74.61
55.25
3.00 %
100.00
0.00
100.00
87.51
62.85
41.31
3.50 %
100.00
0.00
100.00
74.09
53.59
33.71
4.00 %
100.00
0.00
90.11
61.50
39.65
31.11
4.50 %
100.00
100% Succ.
4.646%
0.00
75.03
52.76
33.51
23.62
5.00 %
89.70
80% Succ.
5.303%
10.30
61.81
39.54
27.16
15.40
5.50 %
73.26
26.74
53.07
32.67
20.81
11.24
6.00 %
64.62
35.38
39.13
24.87
13.32
8.01
6.50 %
51.82
50% Succ.
6.551%
48.18
31.32
17.69
9.37
6.87
7.00 %
36.00
64.00
23.10
11.97
6.97
4.27
7.50 %
31.22
68.78
15.30
7.60
5.10
2.81
8.00 %
21.54
78.46
10.20
5.83
3.33
1.66
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
97.23
2.50 %
100.00
0.00
100.00
100.00
100.00
93.35
3.00 %
100.00
0.00
100.00
100.00
99.17
86.43
3.50 %
100.00
0.00
100.00
100.00
93.35
77.29
4.00 %
100.00
0.00
100.00
100.00
80.33
71.75
4.50 %
100.00
0.00
100.00
93.91
76.73
53.46
5.00 %
100.00
0.00
100.00
78.95
61.22
33.24
5.50 %
100.00
0.00
95.57
70.36
45.98
24.93
6.00 %
100.00
100% Succ.
6.292%
0.00
76.73
54.29
27.70
21.33
6.50 %
90.58
90% Succ.
6.512%
9.42
62.88
37.40
21.88
18.28
7.00 %
67.04
32.96
49.31
24.38
18.56
11.36
7.50 %
58.73
50% Succ.
7.756%
41.27
31.02
19.94
13.57
7.48
8.00 %
42.38
57.62
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 April 2024

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:
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