Safe withdrawal rate
The yearly withdrawal a portfolio can sustain.
A safe withdrawal rate is the percent of your portfolio you can take out each year without a high risk of running out of money.
What changes it
How long the money must last, your mix of stocks and bonds, fees, and the luck of when you retire. Retiring right before a crash, known as sequence-of-returns risk, hurts most because you sell low early on.
Flexible spending, cutting back a little in bad years, makes almost any plan safer.