# 1/N ¶

The 1/N strategy is a straightforward rule that determines your yearly withdrawal with the equation:

$withdrawal = \frac{\displaystyle 1}{\displaystyle portfolioValue}$

For example, if you estimate a 30 year retirement and start with $1,000,000, then your first year withdrawal will be `$1,000,000 / 30`

, or `$33,333.33`

.

Later on, if we assume that you have $250,000 in your portfolio with 2 years remaining, then your annual withdrawal would be `$250,000 / 2`

, or `$125,000`

.

### Strengths ¶

- Ensures that you spend every available dollar
- Never prematurely runs out of money

### Weaknesses ¶

- Tends to spend more money toward the end of your retirement than at the beginning.