BacktestFolio · Glossary
PWR
In plain language
With PWR you withdraw only the 'returns' without touching the capital: at the end of the horizon you still have the same wealth in real terms. Suited to those who want to leave an inheritance or cannot afford to deplete capital.
Technical definition
Perpetual Withdrawal Rate: the withdrawal rate that, even in the worst historical scenario, preserves the entire initial capital in real terms at the end of the horizon. It is more conservative than SWR.