The chart illustrates the impact of avoiding annual raises in portfolio withdrawals after years when the portfolio’s value declines. For investors who start with a 4% withdrawal rate, the portfolio has a 90% chance of lasting 25 years with a 2.75% raise every year compared with a 95% chance if there’s no raise following years when the portfolio’s value declines. It has a 70% chance of lasting 30 years with a 2.75% raise every year, compared with an 85% chance if there’s no raise following years when its value declines.
The chart illustrates the impact of avoiding annual raises in portfolio withdrawals after years when the portfolio’s value declines. For investors who start with a 4% withdrawal rate, the portfolio has a 90% chance of lasting 25 years with a 2.75% raise every year compared with a 95% chance if there’s no raise following years when the portfolio’s value declines. It has a 70% chance of lasting 30 years with a 2.75% raise every year, compared with an 85% chance if there’s no raise following years when its value declines.
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