Safe Withdrawal Rate (SWR)
The percentage of a retirement portfolio that can be withdrawn annually with high probability of never running out.
Definition
The Trinity Study (1998) backtested 4% as safe for a 30-year retirement with >95% historical success. Modern updates suggest 3.25-3.5% for 50-60 year early-retirement horizons. The withdrawal is adjusted for inflation annually — not 4% of the current balance each year.
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