Safe Withdrawal Rate
InvestingThe percentage of a retirement portfolio that can be withdrawn annually without running out of money, traditionally 4%.
Example
Example: Consider an investor building a $100,000 portfolio. Safe Withdrawal Rate — the percentage of a retirement portfolio that can be withdrawn annually without running — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.