Not making sense to me.
I use the defaults, then change the 'Spending Models' to Percentage of Remaining Portfolio:
, then enter '95'.
The results provide a graph of the variable spending. In a few short years, it dips from $30,000 to near the blue 'two-person-poverty' line of $13,167. It's a bit tough to interpolate the numbers, but one line at 4 years is nearing $15,000 (much closer to the $13,167 line than the $20,394 line) ; at 7 years very close to the blue line, and below it at 14 years.
This does not add up for me.
Four years of 95% reductions in spending would get you to 81.45% (.95^4) of $30,000 = $24,435. So how can the line dip so low?
13167/30000 ~ 44%. You need to go 16 years to get that reduction at 95%. Yet, the spending lines are coming very close by year 7, and below the line by year 14.
Is this a bug, or am I confused (or both?).
According to the rule, each year's withdrawal is the greater of 95% of last year's withdrawal or 4% of the current portfolio as you started with.