Retirement Withdrawal Rates And Portfolio Success Rates: What Can The Historical Record Teach Us?

Countless current and prospective retirees now rely on portfolio success rates calculated from the historical data for different retirement withdrawal strategies when planning their own retirements. Past history-based studies ushered forth what has become known as the 4 percent rule for retirement withdrawals, as historically 4 percent with inflation adjustments has served as a relatively safe withdrawal rate in the United States. But this paper investigates whether the safety of the 4 percent rule achieved with an aggressive asset allocation is an appropriate conclusion to draw from the historical record.

Provided by: Munich Personal Repec Archive Topic: Software Date Added: May 2011 Format: PDF

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