What is it about?
Here, we analyze several withdrawal strategies for equity investors in both the US and Finland. The selected strategies vary from the well-known 4% rule to more advanced rules. We analyze both the historical performance of the results using more than 110 years of data, as well as the decision-making in the face of the uncertain future.
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Why is it important?
Many investors have a mandate to invest in a way that maximizes withdrawals while not risking the investment's real value. Typical examples are endowment investors such as universities or certain types of pension funds.
Perspectives
Jan and I planned to do a simple study using a newly updated stock market index for Finland. Ultimately, we got curious and interested in the topic which not that widely studied. As a result, the paper got longer and longer, and the US market was added.
Professor Mika Vaihekoski
Turun Yliopisto
Read the Original
This page is a summary of: Long-term equity investing and withdrawal rules, Financial Markets and Portfolio Management, February 2026, Springer Science + Business Media,
DOI: 10.1007/s11408-026-00492-1.
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