Faculty Publications

Title

Does International Diversification Improve Safe Withdrawal Rates?

Document Type

Article

Publication Date

3-4-2014

Abstract

Safe withdrawal rate (SWR) studies have been based on a few asset classes and rarely incorporated international diversification. This is problematic, as an SWR depends on portfolio return and volatility, and broader diversification can extend the efficient frontier toward better retirement outcomes. To determine the benefits of international diversification, I looked at the relative performance of withdrawal rates in 20 developed-market countries.