Retiring in 1942: the best year to start the 4% rule
Retiring in 1942 with $2M and a 4% inflation-adjusted withdrawal, the portfolio grew to $410.5M after 50 years. Its worst year was 1974, when the S&P 500 lost 20.7% including dividends. A 1942 retiree started in the middle of World War II, near the market low of April 1942, and then rode the long postwar boom.
Portfolio Value: Started in 1942
100% S&P 500
100% bonds (Trinity study mix)
Major market event
Starting: $2,000,000
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Withdrawal: 4.0%