Maximum Rate of Withdrawal
motivated by a discussion on NFB

Once upon a time I did a spreadsheet that, among many other things, calculated the Maximum Withdrawal Rate ...

>What! Safe Withdrawals, again?!
Pay attention.
I now have a spreadsheet which does only the Maximum Rate of Withdrawal.

>And that means ... what?
Assume you start a portfolio in, say 1960 and withdraw a percentage of your original portfolio, increasing that amount each year with inflation.
"What withdrawal rate would have reduced your initial portfolio to \$0, after umpteen years?"

"What withdrawal rate would have reduced your initial portfolio to X% of its original value, after umpteen years?"

We might also want ...

>Can you just show a picture of the spreadsheet? A picture is worth a thousand ...
Here's a picture:

Here's what you do:

1. Pick 4 (of 8 possible) assets       Example: 1, 2, 3 and 4
2. Pick the percentage allocation devoted to each       Example: 25%, 25%, 25% and (of course!) 25%
3. Pick a number of years       Example: 30 years
4. Pick how much you want left, after those years have elapsed       Example: 25%
5. Click the Calculate MRW button.
Then you get a chart of the Maximum Rate of Withdrawal starting at each year since 1928.
You also get a chart of what'd happen to a \$1.00 portfolio had you withdrawn that MRW, from some year you select. Example: 1960

>And there's a money-back guarantee on the accuracy of the spreadsheet?
Always.