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Detailed Instructions: Safe Withdrawal Rate - Sweep SWR/Years
Why use this calculator?
To visualize the probability of portfolio survival across a wide range of withdrawal rates and retirement durations simultaneously. It helps you identify a "safe" rate for your specific time horizon and risk tolerance. (Note: Simulations use inflation-adjusted "Real Dollars")
How to use it
Input your expected portfolio Real Return (inflation-adjusted) and Standard Deviation (volatility). The calculator runs fixed simulations (e.g. 200 runs) for various combinations of SWR and years.
Example Inputs
Try these inputs to interpret the results correctly:
| Parameter | Example Value | Description |
|---|---|---|
| Real Return (%) | 5.8 (Targeting 50/50 Portfolio) | Projected annual return adjusted for inflation. |
| Standard Deviation (%) | 6.1 | Projected annual volatility of the portfolio. |
Common Values
Standard return and volatility assumptions used in many examples:
| Portfolio Type | Real Return | Standard Deviation |
|---|---|---|
| 50/50 Portfolio (Stocks/Bonds) | 5.8% | 6.1% |
| 100% Stocks (S&P 500) | 7.0% | 17.0% |
Note on Real vs. Nominal Dollars: Simulations use "Real Dollars" (inflation-adjusted). This means a 0% return maintains purchasing power, while positive returns approximate growth above inflation.
Example Output