Portfolio Inputs
Annual withdrawal = your yearly spending
$
%
Return Scenario
Portfolio Balance Over Time
How These Models Work
4% Rule
Withdraw 4% of starting balance in year 1, then adjust that dollar amount for inflation every year after.
↑Predictable, inflation-proof income.
↓Fixed spending regardless of market performance — a long downturn can deplete the portfolio.
3.5% Rule
Identical to the 4% Rule but starts at 3.5% — a more conservative starting withdrawal.
↑Lower depletion risk in poor markets.
↓Less annual income from the same starting portfolio.
Dynamic Spending
Each year, withdraw 4% of your current portfolio value — not a fixed dollar amount.
↑Portfolio rarely depletes because spending automatically shrinks when markets fall.
↓Unpredictable income — your annual spending rises and falls with the market.
All models assume your annual withdrawal is your total cost of living. Returns above your withdrawal rate cause the portfolio to grow; returns below it cause the portfolio to shrink. Use the Pessimistic scenario to stress-test depletion risk.