File:Constantpercentage.jpg

This graph shows a constant percentage-type retirement withdrawal method, where the yearly withdrawal is a set percentage of the total portfolio value.

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. 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.