We could withdraw 4% from SPY and not be broke in almost every situation based on historaical SPY price and dividend data since 1993. And since growth funds such as IWF, VRGWX and SPYG beat SPY about 80% of the times, I wonder if I can keep a 100% growth portfolio as retirement funds. Is it safe if I withdraw 4% every year from it?
I have built this tool for comparison withdrawing funds from SPY and IWF.
APP
Tax Rate on Dividends: %.
Withdrawal Freqhency:
Withdrawal Rate: %.
Initaial Portfolio Value: $.
Retirement Date:.
Withdrawal Freqhency:
Withdrawal Rate: %.
Initaial Portfolio Value: $.
Retirement Date:.
Simulate 100 Times
Retired Right Before 2000 Financial Crisis
Withdrawing 4.83% from a total IWF portfolio leave me about broke now. SPY does a lot better.
Retired Right Before 2000 Financial Crisis
Withdrawing 11% from a total IWF portfolio leave me about broke now, which is a little better than SPY.
Conclusion
It is quite dangerous keeping a total growth fund for retirement.
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