Asset allocation can have a meaningful impact on retirement success. This chart illustrates how three different investment strategies of $1M may or may not support the “4% rule.” The 4% rule is the initial withdrawal rate that, when grown by inflation, has a high likelihood of not running out of money for 30 years. Assuming J.P. Morgan's Long-Term Capital Market Assumptions and an 80% confidence level, it is clear that some investment is required to be successful – the 100% cash portfolio is fully depleted after 24 years. A less diversified portfolio invested in global equities (ACWI) and U.S. aggregate bonds is successful but is fully depleted after 30 years. A more diversified portfolio (one that includes asset classes like REITs, High-yield Bonds, Emerging Markets Equity and Debt, etc.) can meaningfully improve outcomes as illustrated by the purple line. For specifics about the asset allocation assumptions, see the Disclosure page.