Safe withdrawal Rate Flashcards

1
Q

Safe withdrawal Rate

A
  • Amount of money
  • As a %
  • Of Initial Investment
  • that can be withdrawn
  • each year
  • For a given period of time
  • inc Inflation adjustments
  • which will not lead to Portfolio failure
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2
Q

Portfolio failure is defined as

A

95 % probability of depletion to zero at any time with a specified period

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