Safe Withdrawal Rate - Sweep SWR/Years
The Purpose (Why?)
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 it Works
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.
Case Studies
See how this calculator was used in these foundational lessons:
ALGORITHMIC_NOTE: REAL_DOLLARS
Simulations use "Real Dollars" (inflation-adjusted). This means a 0% return maintains purchasing power, while positive returns approximate growth above inflation.
Input Specifications
| PARAMETER | DETAILS |
|---|---|
| Real Return (%) |
Projected annual return adjusted for inflation.
EXAMPLE: 5.8 (Targeting 50/50 Portfolio)
|
| Standard Deviation (%) |
Projected annual volatility of the portfolio.
EXAMPLE: 6.1
|
Benchmark Values
-
50/50 Portfolio (Stocks/Bonds)R: 5.8% | σ: 6.1%
-
100% Stocks (S&P 500)R: 7.0% | σ: 17.0%
Visualization Example
