Withdrawal Rate

Your withdrawal rate is the percentage of your portfolio you take out each year in retirement. The classic "4% rule" comes from the Trinity Study, which found that withdrawing 4% of a 60/40 portfolio (adjusted annually for inflation) had historically survived 30+ years of retirement in most market scenarios. Lower rates (3–3.5%) are considered safer for early retirees with longer horizons; higher rates increase the risk of running out of money.