Illustrating Dynamic Withdrawal Strategies With Timeline

This video walks you through the dynamic withdrawal strategies available on Timeline, the sustainable withdrawal rate app.

These withdrawal strategies can be broadly classified into 2 categories;

  • Inflation adjustments are rule-based approaches on how withdrawals are adjusted for inflation each year during the retirement period. These include;
  1. Constant Inflation Adjustment (William Bengen’s original approach)
  2. Guyton Inflation Adjustment (by Jonathan Guyton)
  3. Cap and Collar Inflation Adjustment
  4. Fixed Spending (i.e no inflation adjustment)
  • Spending strategies involve making further adjustments to the withdrawal over and above inflation adjustments. These are rules-based increases or decreases in spending, depending on portfolio performance/outstanding balance at the end of each year. They include;
  1. Guardrails (by Jonathan Guyton & William Klinger)
  2. Ratcheting Rule (by Michael Kitces)

The inflation adjustments can be used on their own or combined with any of the spending strategies.

Abraham is the Founder and CEO of Timelineapp. He has authored the Beyond the 4% rule book, written several industry papers and delivered many talks. He holds a master’s degree from Coventry University and an alphabet soup of designations, including the Investment Management Certificate, Chartered Financial Planner and Chartered Wealth Manager.


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