Writing

In comparison to the equity risk premium, factor premiums have had similar risk adjusted excess returns and similar total premiums over long holding periods.  Factor premiums have been as reliably positive as the equity risk premium over various holding period and have exhibited comparatively smaller drawdowns.

A 4% withdrawal rate has worked very well in the United States. However, US Investors have had a remarkable run. Since 1871, the US had higher stock and bond returns along with lower inflation than almost all other countries. Adding 15 other countries to the picture provides us with the dramatically different experience of investors outside the US.

Typical returns data is focused on the United States because it typically has the best and most extensively studied returns....