Test your withdrawal rate against historical benchmarks. Calculate portfolio longevity and identify sequence-of-returns risk before it becomes fatal.
Inflation-adjusted increases withdrawals yearly to maintain purchasing power.
Enter withdrawal parameters to analyze portfolio sustainability
Sequence of returns risk is highest in the first 5-10 years of retirement. A bear market in your early retirement years can permanently impair portfolio longevity, even if average returns meet expectations.
Based on Bill Bengen's 1994 study of rolling 30-year periods. Assumed 60/40 portfolio and inflation-adjusted withdrawals. Current low-yield environment may require lower rates (3-3.5%) for conservative planning.
Consider 'guardrails' approach: reduce spending 10% if portfolio drops below thresholds. A 'bond tent' or cash buffer (2-3 years expenses) protects against forced selling in downturns.