Skip to main content

Comparing Withdrawal Strategies Across Scenarios

Your profile has a default withdrawal strategy — the rule WealthPath uses to decide how much to pull from your portfolio each year in retirement. But what if you want to see how a different strategy would affect your plan?

The Scenario Withdrawal Strategy Override lets you pick a different strategy for any scenario, so you can compare them side by side without changing your profile defaults.

Why This Matters​

Withdrawal strategy has a big impact on how long your money lasts. For example:

  • The 4% rule gives predictable, inflation-adjusted income but ignores how your portfolio is actually performing.
  • Dynamic (guardrails) adapts to market conditions but makes your income less predictable.
  • Fixed-dollar matches your spending exactly but doesn't self-correct if your portfolio falls behind.

Choosing the right strategy is easier when you can see the outcomes next to each other. Create two scenarios with different strategies and compare their portfolio longevity, depletion age, and readiness score in one view.

How to Set a Withdrawal Strategy on a Scenario​

  1. Go to the Scenarios page.
  2. Click Create Scenario (or edit an existing one).
  3. In the Overrides section, toggle on Withdrawal Strategy.
  4. Select a strategy from the dropdown:
    • Fixed Dollar — withdraw exactly what you need (expenses minus income).
    • Fixed Percentage — withdraw a fixed % of your current portfolio each year.
    • % of Initial Balance — withdraw a fixed % of your starting portfolio, adjusted for inflation each year (the classic "4% rule").
    • Dynamic (Guardrails) — adjust withdrawals based on portfolio performance, within a floor and ceiling you set.
  5. If the strategy requires parameters, additional controls will appear:
    • Withdrawal Rate — the percentage to withdraw (applies to fixed-percentage, % of initial, and dynamic strategies).
    • Floor — the maximum percentage your withdrawal can decrease from last year, in real terms (dynamic strategy only).
    • Ceiling — the maximum percentage your withdrawal can increase from last year, in real terms (dynamic strategy only).
  6. Click Save Scenario.

If you leave the toggle off, the scenario uses whatever withdrawal strategy you have set in your profile — exactly as before.

Example: Comparing the 4% Rule Against Dynamic Guardrails​

Suppose your profile uses the Fixed Dollar strategy, and you want to explore whether a percentage-based approach would extend your runway.

Scenario A — "4% Rule"

  • Toggle on Withdrawal Strategy
  • Select % of Initial Balance
  • Set rate to 4%

Scenario B — "Dynamic 5% with Guardrails"

  • Toggle on Withdrawal Strategy
  • Select Dynamic (Guardrails)
  • Set rate to 5%, floor to 10%, ceiling to 10%

Now select both scenarios and click Compare. The comparison view will show you:

  • Portfolio at retirement — the same for both (only the drawdown differs).
  • Fund depletion age — which strategy makes your money last longer?
  • Readiness score — which scenario gives you more margin?
  • Overlay chart — see how the two portfolio trajectories diverge over time.

How It Works Behind the Scenes​

When you compare scenarios, WealthPath runs a full projection for each one. If a scenario has a withdrawal strategy override, that strategy is used for its projection. If not, your profile's default strategy applies. The baseline projection (shown for reference) always uses your profile strategy.

Everything else about the projection stays the same — same retirement income, same expenses, same tax model, same account sequencing. Only the withdrawal amount calculation changes, so the comparison isolates the impact of the strategy choice.

Tips​

  • Start with your profile default as the baseline. Create scenarios only for the strategies you want to test — the comparison view automatically includes your profile default as the baseline row.
  • Combine with other overrides. You can set a withdrawal strategy and change the retirement age or rate of return on the same scenario. For example: "What if I retire at 60 and use the 4% rule?"
  • Dynamic guardrails need tuning. A wider floor/ceiling range gives more flexibility but less income stability. Try a few combinations to find your comfort level.
  • Fixed-dollar doesn't need a rate. It withdraws exactly your expenses minus income, so there's no percentage to configure.