Historical performance and safe withdrawal rate analysis for the 3-Bucket Retirement Strategy. See asset allocation, risk metrics, and success rates across different withdrawal strategies and retirement horizons.
Bucket 1 (2 yrs cash), Bucket 2 (5 yrs bonds), Bucket 3 (remainder in stocks). Refill buckets when markets are up. Designed for psychological comfort during market volatility.
Source: Morningstar/Christine Benz
Worst year: -16.9%
Sharpe: 0.44
| Metric | Value |
|---|---|
| CAGR (Annual Return) | 5.8% |
| Volatility (Std Dev) | 10.5% |
| Maximum Drawdown | -25.2% |
| Sharpe Ratio | 0.44 |
| Best Year | 21.5% |
| Worst Year | -16.9% |
| Withdrawal Rate | 30-Year Success | 40-Year Success |
|---|---|---|
| Conservative (3%) | 100% | 92% |
| Moderate (3.5%) | 98% | 90% |
| Standard (4%) | 90% | 82% |
| Aggressive (5%) | 74% | 66% |
Conservative (3%)
Moderate (3.5%)
Standard (4%)
Aggressive (5%)
Calculation Assumptions
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