The perfect withdrawal amount:

A methodology for creating retirement account distribution strategies

Authors

  • E. Dante Suarez Trinity University, Department of Finance and Decision Sciences
  • Antonio Suarez Independent Financial Advisor
  • Daniel Walz Trinity University, Department of Finance and Decision Sciences

DOI:

https://doi.org/10.61190/fsr.v24i4.3243

Keywords:

Retirement, Optimal withdrawal, Safe withdrawal rate, Withdrawal rule, Sequencing risk

Abstract

We present a new way to develop withdrawal strategies from retirement portfolios. It is derived analytically, instead of from empirical testing, and it iterates always in the same manner. It is based on a new measure we develop, the Perfect Withdrawal Amount, for which we discuss how to construct a probability distribution and how to apply it sequentially. We also derive a new measure of sequencing risk. We present new strategies built with this framework.

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Published

2015-12-30

How to Cite

Suarez, E. D., Suarez, A., & Walz, D. (2015). The perfect withdrawal amount:: A methodology for creating retirement account distribution strategies. Financial Services Review, 24(4), 331–357. https://doi.org/10.61190/fsr.v24i4.3243

Issue

Vol. 24 No. 4 (2015): Winter 2015

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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