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Safe Withdrawal Rate & Fee Impact

The 4% rule is a gross portfolio withdrawal idea. Assets under management (AUM) fees come out of the account, so they change both spending power and ending wealth — but not by simply subtracting the fee from 4% (for example, 4% − 1% is not 3%).

How this tool works

Research-style estimates (for example, work popularized by Michael Kitces) suggest a 1% investment expense might reduce a 4% safe withdrawal rate toward about 3.6%, not 3%, because fees shrink when the portfolio shrinks in bad markets. This calculator shows that spending impact — and the much larger effect fees can have on ending wealth when markets are kinder.

Use Simple model for a constant-return estimate, or Sequence scenarios for three teaching paths (tough / typical / favorable). This is not a full historical backtest like FiCalc; it focuses on the fee question.

Your portfolio & fees

Default matches common “smaller balance” examples; enter your own amount.
Baseline SWR (before AUM)
Common rule of thumb: 4%.
AUM / advisor fee
Typical advice: ~1%. Smaller balances may face higher % or minimum fees.
Fund expense ratio
Low-cost index funds are often ~0.03–0.10%; active funds can be much higher.
Retirement length

Calculation mode

Expected real return (before fees)
Used only in Simple mode. Spending stays flat in real terms.

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