The new 2021 includes the "Actuarial option" which is very interesting. I was wondering how to also study the "RMD" method that has been described in many financial planning articles and books. Essentially, the IRS RMD factors are used differntly compare to the IRS menthod. Instead each yeaer the RMD factor is applied to the total balance of the portfolio as a method to explore a withdrawal strategy amount for the amount of spending that year. For example if the retirees age is 70, then the factor is RMD factor is about 27. So, if that retiree has 1 Million in total portforlio, then they would withdraw 1Mill/27 = $37000 that year (or 3.7%). Then each subsequent year, the new RMD factor is found for the age and that is divided into the portfolio value at that time. Even though the RMD factor was designed by the IRS to define the minimum amount that should be removed from tax IRA's, the use of the RMD factor for withdrawal analysis is different in that the RMD factor is applied to the total portfolio value each year. THe RMD factors contain a longevity factor so that the retiree never runs out of money in the case that the retiree has a longer than planned life. If the portfolio does better or worse that previous year that expected, the use of the RMD factor will provide what is believed by academics to provide a safe withdrawal strategy, even thought it will be somewhat variable each year. I didn't see a method where this alternative withdrwal strategy could be modeled. Suggestions and comments please.
PRC2021 doesn't implement this withdrawal strategy so there really isn't a way to evaluate it with PRC. I'll add it to my list of candidate enhancements for some future update but cannot say at this time if and when it might actually be implemented.
Stuart: Thanks for consideration as something to possibly add in the future.