Beyond The 4% Rule: How Much Can You Spend In Retirement?

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.  All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.  Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risk, including loss of principal.

The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.

IMPORTANT: The projections or other information generated by SCFR using a statistical tool called “R” regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

Past performance is no guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income investments are subject to various other risks, including changes in credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors.

International investments involve additional risks, which include differences in financial accounting standards, currency fluctuations, geopolitical risk, foreign taxes and regulations, and the potential for illiquid markets.

Small-cap stocks are subject to greater volatility than those in other asset categories.

Forecasts contained herein are for illustrative purposes only, may be based upon proprietary research and are developed through analysis of historical public data.

Performance may be affected by risks associated with non-diversification, including investments in specific countries or sectors. Additional risks may also include, but are not limited to, investments in foreign securities, fixed income, small capitalization securities and commodities. Each individual investor should consider these risks carefully before investing in a particular security or strategy.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

Charles Schwab Investment Management, Inc., dba Schwab Asset Management® is a registered investment adviser and an affiliate of Charles Schwab & Co., Inc. ("Schwab").

Asset allocations for hypothetical portfolios are as follows (example is hypothetical and provided for illustrative purposes only):

Conservative (Cash: 30%, Bonds: 50%, Large-Cap Stocks: 15%, Mid/Small-Cap Stocks: 0%, and International Stocks: 5%), Moderately Conservative (Cash: 10%, Bonds: 50%, Large-Cap Stocks: 25%, Mid/Small-Cap Stocks: 5%, and International Stocks: 10%), Moderate (Cash: 5%, Bonds: 35%, Large-Cap Stocks: 35%, Mid/Small-Cap Stocks: 10%, and International Stocks: 15%), and Moderately Aggressive (Cash: 5%, Bonds: 15%, Large-Cap Stocks: 45%, Mid/Small-Cap Stocks: 15%, and International Stocks: 20%).

Portfolio level capital market estimates and standard deviation*

Conservative (Return Estimate: 5.04%, Standard Deviation: 4.40%), Moderately Conservative (Return Estimate: 5.90%, Standard Deviation: 7.28%), Moderate (Return Estimate: 6.53%, Standard Deviation: 10.01%), Moderately Aggressive (Return Estimate: 7.08%, Standard Deviation: 12.80%).

Source: Charles Schwab Investment Management's (CSIM) 2025 10-year long-term return estimates.* Standard deviation is a statistical measure that calculates the degree to which returns have fluctuated over a given time period. A higher standard deviation indicates a higher level of variability in returns.