SWR
Business & Finance abbreviation · Personal Finance
| Stands for | Safe withdrawal rate |
|---|---|
| Categories | Business & Finance |
SWR stands for Safe withdrawal rate, a personal finance abbreviation.
Percentage of a retirement portfolio that can be withdrawn in the first year, then adjusted for inflation, with little risk of running out of money over a long retirement. The best-known figure is 4% for a 30-year horizon.
Example: For a 50-year early retirement, I'm planning around a 3.5% SWR instead of 4%.
Usage notes
Common in FIRE discussions, where many argue that longer horizons call for a lower rate than the classic 4%.
Related abbreviations
More personal finance abbreviations
- 401(a) – Qualified retirement plan (Internal Revenue Code section 401(a))
- 401(k) – Employer-sponsored retirement savings plan (Internal Revenue Code…
- 403(b) – Tax-sheltered annuity plan (Internal Revenue Code section 403(b))
- 457(b) – Deferred compensation plan (Internal Revenue Code section 457(b))
- 529 – Qualified tuition program (Internal Revenue Code section 529)
- ABLE – Achieving a Better Life Experience account
- AER – Annual equivalent rate
- APR – Annual percentage rate
- APRC – Annual percentage rate of charge
- APY – Annual percentage yield
- AU – Authorized user
- BT – Balance transfer