Retired in › 1995

Retiring in 1995: did the 4% rule survive?

Retiring at the start of 1995 with $1M and spending $40,000 a year adjusted for inflation (the 4% rule), a 100% stock portfolio was still going after 29 years, with $4.6M left; a 60/40 portfolio was still going after 29 years, with $2.6M left.

Over the first 10 years, stocks returned 8.8% a year after inflation and the 60/40 mix 7.9%. The first decade matters most: losses early, while withdrawals continue, are what break a plan.

History so far covers 29 years from 1995, through 2023; the full 30 years aren't in yet.

← 1994 · 1996 → · The 4% rule over 30 years · All start years

Questions

What happened if you retired in 1995 with the 4% rule?

Retiring at the start of 1995 with $1M and spending $40,000 a year adjusted for inflation (the 4% rule), a 100% stock portfolio was still going after 29 years, with $4.6M left; a 60/40 portfolio was still going after 29 years, with $2.6M left.