BacktestFolio · Glossary
Guyton-Klinger
In plain language
Withdrawals are not locked like a classic fixed SWR: in good years they can rise a little, in hard years they can fall. That usually allows a higher starting rate, provided you accept that the annual amount will move around.
Technical definition
Dynamic withdrawal strategy with guardrails. If the current withdrawal rate falls below a threshold (prosperity), the withdrawal increases by 10%; if it rises above a threshold (capital preservation), it decreases by 10%, but only while more than 15 years remain. After a year with negative nominal return, and only if the current rate exceeds the initial rate, the withdrawal is not adjusted for inflation.