The perfect withdrawal amount:
A methodology for creating retirement account distribution strategies
DOI:
https://doi.org/10.61190/fsr.v24i4.3243Keywords:
Retirement, Optimal withdrawal, Safe withdrawal rate, Withdrawal rule, Sequencing riskAbstract
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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