US Stocks/Bonds 50/50 Portfolio: 50-year retirement

Last Update: 31 October 2024

Do you have in mind a 50 years retirement, investing in the US Stocks/Bonds 50/50 Portfolio?

Worst case scenario so far, over a 50-year time horizon, you could have withdrawn 3.267% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 50 years.

With a 4% withdrawal strategy, you would have lived on your investiment for 50 years in the 74.34% of cases. In the 46.43% 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 50 years of the US Stocks/Bonds 50/50 Portfolio

Over the last 50 years (last update: October 2024), the portfolio has returned 9.51% annualized, with a maximum drawdown of -26.93%.

A safe withdrawal rate would have been 6.109%.

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 Oct 2024
Withdrawal Rate (%)
Investment Performances
Timeframe Period from Period to Perpetual Safe Ann.Return(%)
[ Infl.Adj. ]		 Max
Drawdown(%)
50 Years 1 Nov 1974
 31 Oct 2024 5.707 6.109 9.51
[ 5.59 ] 		-26.93
Nov 2007 - Feb 2009
Simulations are calculated with actual returns of US Stocks/Bonds 50/50 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 October 2024

For a complete view of the portfolio and all the possible strategies, please refer to US Stocks/Bonds 50/50 Portfolio page.

Withdrawal Rates Simulation (updated at Oct 2024)

How much would it be an acceptable withdrawal rate, for the US Stocks/Bonds 50/50 Portfolio?

Analyzing the available data source, all the 50-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 - Oct 2024
Period: Nov 1924 - Oct 2024
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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) 		2.621
Jul 1901 		2.783
Jul 1901 		2.944
Jul 1901 		3.106
Jul 1901 		3.267
Jul 1901
95%
 3.060
 3.198
 3.322
 3.440
 3.557
90%
 3.209
 3.327
 3.444
 3.564
 3.689
80%
 3.376
 3.513
 3.643
 3.769
 3.905
50%
Median WR 		3.921
 4.050
 4.185
 4.323
 4.453
Only 1 case
Best Period (From) 		8.305
Jun 1920 		8.446
Jun 1920 		8.586
Jun 1920 		8.726
Jun 1920 		8.866
Jun 1920
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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) 		2.866
Feb 1937 		3.010
Feb 1937 		3.153
Mar 1937 		3.296
Mar 1937 		3.438
Mar 1937
95%
 3.161
 3.286
 3.397
 3.502
 3.607
90%
 3.257
 3.376
 3.491
 3.605
 3.708
80%
 3.390
 3.520
 3.652
 3.782
 3.903
50%
Median WR 		3.847
 3.990
 4.133
 4.283
 4.420
Only 1 case
Best Period (From) 		6.762
Jun 1932 		7.014
Jun 1932 		7.266
Jun 1932 		7.527
Jul 1932 		7.791
Jul 1932
Simulations are calculated with actual returns of US Stocks/Bonds 50/50 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 October 2024

Withdrawals and Success Rate

If you had implemented a specific Withdrawal Strategy with the US Stocks/Bonds 50/50 Portfolio, over 50 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 50-year timeframes available in the data source. To focus on a specific withdrawal rate, click on the links in the table.

Period: Jan 1871 - Oct 2024
Period: Nov 1924 - Oct 2024
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Withdrawal
Rate
% Success over 50 Years
% Fail
% Success over 50 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
100.00
3.00 %
100.00
100% Succ.
3.267% 		0.00
100.00
99.84
99.20
96.39
3.50 %
97.43
95% Succ.
3.557% 		2.57
92.94
87.73
80.67
73.62
4.00 %
74.34
50% Succ.
4.453% 		25.66
66.64
58.54
52.29
46.43
4.50 %
48.12
51.88
42.98
38.49
35.04
33.36
5.00 %
34.16
65.84
32.48
30.47
26.46
22.21
5.50 %
23.34
76.66
21.09
18.85
17.40
15.32
6.00 %
16.12
83.88
15.48
13.95
13.15
12.03
6.50 %
12.75
87.25
11.55
10.10
8.34
7.22
7.00 %
8.34
91.66
7.14
6.26
4.17
3.13
7.50 %
4.97
95.03
3.69
2.33
1.92
1.52
8.00 %
1.60
98.40
1.36
0.96
0.72
0.40
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 50 Years
% Fail
% Success over 50 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
100.00
3.00 %
100.00
100% Succ.
3.438% 		0.00
100.00
100.00
100.00
99.00
3.50 %
99.33
95% Succ.
3.607% 		0.67
95.01
89.18
81.53
73.88
4.00 %
74.21
50% Succ.
4.420% 		25.79
67.39
57.90
49.42
42.26
4.50 %
45.92
54.08
38.94
32.78
28.95
26.79
5.00 %
28.29
71.71
25.62
22.63
18.64
13.98
5.50 %
13.98
86.02
11.31
9.32
7.15
3.83
6.00 %
5.66
94.34
4.66
1.83
0.83
0.50
6.50 %
0.83
99.17
0.50
0.33
0.33
0.33
7.00 %
0.33
99.67
0.33
0.33
0.17
0.00
7.50 %
0.33
99.67
0.33
0.00
0.00
0.00
8.00 %
0.00
100.00
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 50/50 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 October 2024

Related Pages

Portfolio Main Page:
US Stocks/Bonds 50/50 Portfolio

For the US Stocks/Bonds 50/50 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