• Corpus ID: 156833259

Determining Withdrawal Rates Using Historical Data

  title={Determining Withdrawal Rates Using Historical Data},
  author={William P. Bengen},
At the onset of retirement, investment advisors make crucial recommendations to clients concerning asset allocation, as well as dollar amounts they can safely withdraw annually, so clients will not outlive their money. This article utilizes historical investment data as a rational basis for these recommendations. It employs graphical interpretations of the data to determine the maximum safe withdrawal rate (as a percentage of initial portfolio value), and establishes a range of stock and bond… 

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