File:Dividends.jpg

This graph shows a spend-only-the-dividends retirement withdrawal method, where the yearly withdrawal is simply whatever dividends are thrown off by the stock and bond holdings.

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 the full value of the stock and bond dividends. Stocks are represented by the S&P 500 index and bonds are represented by 5-year treasury notes. Timeframe is 1972-2007.