File:Constantdollar.jpg

This graph shows a constant dollar-type retirement withdrawal method, where the initial withdrawal is adjusted in each subsequent year by the amount of inflation.

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 consists of 70% stocks and 30% bonds, rebalanced yearly. Initial withdrawal of 4%, adjusted each year by actual inflation value. Stocks are represented by the S&P 500 index and bonds are represented by 5-year treasury notes. Timeframe is 1972-2007.