Planning for retirement involves understanding how much you can safely withdraw from your savings each year without running out of money. The 'Safe Withdrawal Rate' (SWR) is a widely discussed concept, often based on historical market data. A common guideline, popularized by the "4% Rule," suggests that withdrawing 4% of your initial retirement portfolio value, adjusted annually for inflation, has a high probability of lasting 30 years.
However, the SWR is not a fixed number and can be influenced by various factors. These include your investment allocation, the specific time period you are retired (market conditions at the start of your retirement can significantly impact outcomes), your desired retirement duration, and your willingness to adjust withdrawals based on market performance. For 2025, and considering potential market shifts and inflation, it's wise to explore different withdrawal rates and understand their implications.
function calculateWithdrawal() {
var portfolioValue = parseFloat(document.getElementById("currentPortfolioValue").value);
var withdrawalRate = parseFloat(document.getElementById("desiredWithdrawalRate").value);
var resultDiv = document.getElementById("result");
if (isNaN(portfolioValue) || isNaN(withdrawalRate)) {
resultDiv.innerHTML = "Please enter valid numbers for both fields.";
return;
}
if (portfolioValue < 0 || withdrawalRate < 0) {
resultDiv.innerHTML = "Values cannot be negative.";
return;
}
var annualWithdrawalAmount = (portfolioValue * withdrawalRate) / 100;
resultDiv.innerHTML = "
Your Estimated Annual Withdrawal:
" +
"$" + annualWithdrawalAmount.toFixed(2) + "" +
"This calculation represents the initial annual amount you could withdraw based on your current portfolio value and desired withdrawal rate. Remember to consider inflation adjustments and market fluctuations for a sustainable retirement income.";
}
#retirementWithdrawalCalculator {
font-family: sans-serif;
max-width: 600px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ccc;
border-radius: 8px;
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 5px;
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.form-group input[type="number"] {
width: calc(100% – 12px);
padding: 8px;
border: 1px solid #ccc;
border-radius: 4px;
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button {
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
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font-size: 16px;
}
button:hover {
background-color: #0056b3;
}
#result {
margin-top: 20px;
padding: 15px;
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border: 1px solid #dee2e6;
border-radius: 4px;
}
#result h3 {
margin-top: 0;
color: #333;
}
#result p {
margin-bottom: 5px;
color: #555;
}