A guardrails withdrawal strategy changes how much you spend in retirement when markets move a lot, instead of spending the same amount every year.
In PortfolioPilot it is one of three withdrawal orders in your plan. After a bad run it cuts spending 10%, after a good run it raises it 10%, always within 80% to 120% of your starting budget. Included in the Free plan.
An illustrative comparison for a hypothetical plan. Switch between the two withdrawal orders.
Illustrative comparison of tax-efficient withdrawal with fixed spending and guardrails withdrawal for a hypothetical plan, at the 50th and 10th percentile.
The portfolio is hypothetical, and all figures are for demonstrative purposes only. Nothing shown is a recommendation to buy or sell any security.
Three steps from your accounts to the answer.
Open Plan, then Retirement planning. Enter your ages, monthly budget and Social Security, or keep the defaults.
Open Taxes & withdrawals and pick Guardrails withdrawal under Withdrawal order.
See the chance of success and both outcomes change, or save it as a what-if scenario.
The Withdrawal order setting has three options.
The recommended default: taxable accounts first, then tax-deferred, then tax-free.
Takes from every account type in proportion to its size.
Adjusts spending when your withdrawal rate moves past 1.2 or 0.8 times where it started.
Guardrails can protect the plan in bad markets, but you spend less in those years.
Your chance of not running out of money, from 1,000 simulations.
Retire later, spend less, and compare with your base plan.
Required minimum distributions, year by year.
Tests Roth conversion schedules bracket by bracket.
Add your accounts and set up your plan. Guardrails withdrawal is included in the Free plan.
Get startedShort answers here, with a link to the full help center article where one exists.
A spending rule that cuts or raises withdrawals when markets move a lot, within set limits.
For most people, tax-efficient withdrawal: taxable first, then tax-deferred, then tax-free. Read more in the Help Center →
No. It simulates your own budget and accounts instead of a fixed percentage. Read more in the Help Center →
It is a guardrails-style rule in the same spirit, with PortfolioPilot's own thresholds: 10% changes, 1.2 and 0.8 times the starting rate, within 80% to 120%.
Yes. All three withdrawal orders are included in the Free plan.
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