Retirement Investing
Safe Withdrawal Rate
Definition
What is Safe Withdrawal Rate?
An estimated withdrawal rate intended to support spending over a long retirement under stated assumptions.
Example in practice
How This Looks in Practice
A retiree tests whether 3.5% annual withdrawals survive poor market sequences.
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Related Terms
Retirement Investing
Withdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.
Retirement InvestingSequence-of-Returns Risk
The risk that poor returns early in a withdrawal period cause lasting portfolio damage.
Retirement InvestingRetirement Account
An account or arrangement designed to accumulate and invest money for retirement.
Estate PlanningEstate
The property, investments, rights, and obligations left by a person at death.