Retired in › 2011

Retiring in 2011: did the 4% rule survive?

Retiring at the start of 2011 with $1M and spending $40,000 a year adjusted for inflation (the 4% rule), a 100% stock portfolio was still going after 13 years, with $2.3M left; a 60/40 portfolio was still going after 13 years, with $1.3M left.

Over the first 10 years, stocks returned 11.6% a year after inflation and the 60/40 mix 8.1%. The first decade matters most: losses early, while withdrawals continue, are what break a plan.

History so far covers 13 years from 2011, through 2023; the full 30 years aren't in yet.

← 2010 · 2012 → · The 4% rule over 30 years · All start years

Questions

What happened if you retired in 2011 with the 4% rule?

Retiring at the start of 2011 with $1M and spending $40,000 a year adjusted for inflation (the 4% rule), a 100% stock portfolio was still going after 13 years, with $2.3M left; a 60/40 portfolio was still going after 13 years, with $1.3M left.