Retiring in 2010: How That Retirement Is Going, 14 Years In
A $1,000,000 60/40 portfolio, retiring in 2010 and spending $40,000/yr (inflation-adjusted), tested against the 14 years of real market history available since then.
Year by year: the 4% plan
| Year | Age | Stocks | Bonds | 60/40 | Withdrawal | End balance |
|---|---|---|---|---|---|---|
| 1 | 65 | +13% | +6% | +10% | $40,000 | $1,058,000 |
| 2 | 66 | −1% | +14% | +5% | $40,000 | $1,069,000 |
| 3 | 67 | +14% | +1% | +9% | $40,000 | $1,119,000 |
| 4 | 68 | +30% | −11% | +14% | $40,000 | $1,226,000 |
| 5 | 69 | +12% | +9% | +11% | $40,000 | $1,314,000 |
| 6 | 70 | −1% | −1% | −1% | $40,000 | $1,262,000 |
| 7 | 71 | +10% | −1% | +6% | $40,000 | $1,290,000 |
| 8 | 72 | +19% | 0% | +11% | $40,000 | $1,392,000 |
| 9 | 73 | −6% | −2% | −4% | $40,000 | $1,293,000 |
| 10 | 74 | +29% | +7% | +20% | $40,000 | $1,506,000 |
| 11 | 75 | +17% | +9% | +14% | $40,000 | $1,668,000 |
| 12 | 76 | +21% | −6% | +10% | $40,000 | $1,794,000 |
| 13 | 77 | −24% | −20% | −22% | $40,000 | $1,361,000 |
| 14 | 78 | +22% | +1% | +14% | $40,000 | $1,501,000 |
What this sequence teaches
Over the first five years of this retirement (2010–2014), a 60/40 portfolio's cumulative real return was +58%. The single worst year in the tested window was 2022, when the 60/40 blend returned −22% in real terms.
Under the 4% withdrawal plan, the real portfolio balance bottomed out at $1,058,000 in 2010, before recovering in later years.
Because the first five years were strongly positive, this retirement built a real cushion early. A strong start is one of the best protections against sequence-of-returns risk, since later downturns bite a larger balance instead of a depleted one.
What RetireOdds actually simulates
The table above is the transparent skeleton: one portfolio, one withdrawal rule, one sequence of real historical returns, before taxes. It's meant to be checkable by hand.
Inside RetireOdds, the same year-by-year loop runs against your plan and adds what a real retirement actually has to deal with: federal and state taxes with account buckets (taxable, tax-deferred, Roth) drawn in order, Social Security claiming and its partial taxability, Required Minimum Distributions, healthcare costs (ACA subsidies before 65, Medicare and IRMAA after), Roth conversions, and one-time life events.
It also runs three engines instead of one: Monte Carlo (1,000 lognormal real-return paths calibrated to this same 1928–2023 dataset), a block bootstrap of this history, and the historical replay shown on this page. A plan fails if any year is unfunded — including the last one.
Read the full method on /methodology, walk through the product in the user guide, or try your own numbers in the free calculator.
Returns are approximate, rounded, planning-grade real (inflation-adjusted) totals for US large-cap stocks and 10-year Treasuries — this is educational modeling, not financial advice.