VPW rule

The "VPW rule" refers to the Variable Percentage Withdrawal rule used in retirement planning. This method, endorsed by Bogleheads, involves adjusting the withdrawal rate from your retirement portfolio annually based on your current portfolio value, age, and retirement horizon. This approach contrasts with fixed percentage withdrawals, aiming to prevent depleting your funds. It provides a formula to adjust withdrawal rates over time, ensuring financial security but introducing variability in annual withdrawals as volatile as the portfolio itself 1.