File:Galeno.jpg

This graph shows a combination retirement withdrawal method, which includes a constant percentage allocation shift combined with a yearly withdrawal amount that is averaged over a 7.5 year period.

The blue bar-graph shows withdrawals in individual years (using the left-hand scale), while the red line shows the remaining portfolio value (using the right-hand scale). Portfolio initially consists of 70% stocks and 30% bonds, but is not rebalanced yearly. Initial withdrawal of 4% of the total portfolio, which is determined by dividing the bond portion by 7.5 (the averaging, where the bond portfolio holds 7.5 years of withdrawals). Each year, 6% of the stock portion is converted to bonds and the yearly withdrawal is again calculated by dividing the total bond holdings by 7.5. This is essentially a modified Galeno withdrawal strategy.

Stocks are represented by the S&P 500 index and bonds are represented by 5-year treasury notes. Timeframe is 1972-2007.