US Stocks/Bonds 80/20 Portfolio: 30-year retirement

Last Update: 30 April 2024

Do you have in mind a 30 years retirement, investing in the US Stocks/Bonds 80/20 Portfolio?

Worst case scenario so far, over a 30-year time horizon, you could have withdrawn 3.731% of your initial capital each year, kept withdrawing all the time (adjusting for inflation), and you wouldn't have run out of money before 30 years.

With a 4% withdrawal strategy, you would have lived on your investiment for 30 years in the 99.8% of cases. In the 77.58% 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 30 years of the US Stocks/Bonds 80/20 Portfolio

Over the last 30 years (last update: April 2024), the portfolio has returned 9.27% annualized, with a maximum drawdown of -42.23%.

A safe withdrawal rate would have been 8.238%.

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(%)
30 Years 1 May 1994
30 Apr 2024 7.013 8.238 9.27
[ 6.56 ]
-42.23
Nov 2007 - Feb 2009
Simulations are calculated with actual returns of US Stocks/Bonds 80/20 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 80/20 Portfolio page.

Withdrawal Rates Simulation (updated at Apr 2024)

How much would it be an acceptable withdrawal rate, for the US Stocks/Bonds 80/20 Portfolio?

Analyzing the available data source, all the 30-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)
1.509
Jun 1902
2.277
Jun 1902
3.045
Jun 1902
3.531
Sep 1929
3.731
Sep 1929
95%
3.157
3.490
3.802
4.102
4.416
90%
3.474
3.771
4.055
4.310
4.634
80%
3.900
4.239
4.546
4.851
5.126
50%
Median WR
5.733
6.015
6.298
6.589
6.969
Only 1 case
Best Period (From)
13.340
Jul 1932
13.573
Jul 1932
13.806
Jul 1932
14.039
Jul 1932
14.272
Jul 1932
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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)
2.931
Sep 1929
3.131
Sep 1929
3.331
Sep 1929
3.531
Sep 1929
3.731
Sep 1929
95%
3.400
3.621
3.872
4.102
4.334
90%
3.619
3.876
4.117
4.377
4.609
80%
4.165
4.432
4.710
4.987
5.228
50%
Median WR
6.295
6.609
6.862
7.151
7.447
Only 1 case
Best Period (From)
13.340
Jul 1932
13.573
Jul 1932
13.806
Jul 1932
14.039
Jul 1932
14.272
Jul 1932
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)
5.631
May 1974
5.857
May 1974
6.084
May 1974
6.310
May 1974
6.536
May 1974
95%
6.135
6.358
6.604
6.838
7.069
90%
6.287
6.547
6.821
7.076
7.358
80%
6.564
6.842
7.146
7.408
7.677
50%
Median WR
7.214
7.516
7.782
8.058
8.310
Only 1 case
Best Period (From)
11.019
Aug 1982
11.340
Aug 1982
11.660
Aug 1982
11.980
Aug 1982
12.300
Aug 1982
Simulations are calculated with actual returns of US Stocks/Bonds 80/20 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 80/20 Portfolio, over 30 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 30-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 30 Years
% Fail
% Success over 30 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
99.80
2.50 %
100.00
0.00
100.00
100.00
99.86
99.66
3.00 %
100.00
0.00
100.00
100.00
99.66
97.57
3.50 %
100.00
100% Succ.
3.731%
0.00
100.00
99.59
94.73
88.99
4.00 %
99.80
95% Succ.
4.416%
0.20
97.03
90.95
84.94
77.58
4.50 %
93.32
90% Succ.
4.634%
6.68
86.97
80.96
74.34
65.29
5.00 %
82.17
80% Succ.
5.126%
17.83
77.11
71.17
62.32
56.11
5.50 %
74.41
25.59
68.40
60.23
54.42
51.59
6.00 %
66.24
33.76
58.54
52.40
50.17
47.47
6.50 %
56.52
50% Succ.
6.969%
43.48
50.64
48.41
44.29
38.62
7.00 %
49.49
50.51
45.17
41.12
35.31
29.64
7.50 %
42.81
57.19
37.68
32.01
26.00
20.80
8.00 %
34.03
65.97
29.03
22.62
17.56
13.77
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 30 Years
% Fail
% Success over 30 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
0.00
100.00
100.00
100.00
99.88
3.50 %
100.00
100% Succ.
3.731%
0.00
100.00
99.76
97.15
92.63
4.00 %
99.64
95% Succ.
4.334%
0.36
97.03
92.39
87.63
83.59
4.50 %
91.80
90% Succ.
4.609%
8.20
88.35
83.23
78.95
73.72
5.00 %
83.23
80% Succ.
5.228%
16.77
79.67
75.27
70.63
66.71
5.50 %
76.81
23.19
72.29
67.90
64.68
61.36
6.00 %
69.68
30.32
65.64
62.07
59.10
56.00
6.50 %
62.90
37.10
59.33
56.60
51.96
45.66
7.00 %
56.96
50% Succ.
7.447%
43.04
52.08
47.68
41.26
33.29
7.50 %
48.87
51.13
43.52
36.39
28.18
20.21
8.00 %
38.29
61.71
32.10
23.19
16.65
11.77
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 30 Years
% Fail
% Success over 30 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
0.00
100.00
100.00
100.00
100.00
3.50 %
100.00
0.00
100.00
100.00
100.00
100.00
4.00 %
100.00
0.00
100.00
100.00
100.00
100.00
4.50 %
100.00
0.00
100.00
100.00
100.00
100.00
5.00 %
100.00
0.00
100.00
100.00
100.00
100.00
5.50 %
100.00
0.00
100.00
100.00
100.00
100.00
6.00 %
100.00
0.00
100.00
100.00
99.59
97.51
6.50 %
100.00
100% Succ.
6.536%
0.00
99.59
97.51
91.70
82.57
7.00 %
97.93
95% Succ.
7.069%
2.07
90.46
85.48
71.37
60.17
7.50 %
86.72
80% Succ.
7.677%
13.28
73.86
62.24
50.21
36.93
8.00 %
64.73
35.27
51.45
40.25
29.46
20.33
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 80/20 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 80/20 Portfolio

For the US Stocks/Bonds 80/20 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