File:ConstantPercentageAgeInBonds.jpg

This graph shows a constant percentage-type retirement withdrawal method, where the yearly withdrawal is a set percentage of the total portfolio value. And, the amount of bonds in the portfolio is increased by 1% a year to equal the person's age. In this example, the ages covered are from 55-90.

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 45% stocks and 55% bonds at the start, changed 1% a year until the portfolio is 10% stocks and 90% bonds at the end. Yearly withdrawal is 4% of total portfolio value. Stocks are represented by the S&P 500 index and bonds are represented by 5-year treasury notes. Timeframe is 1972-2007.