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[Solved] Growth adjustment factor for actuarial method

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(@jkandell)
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Joined: 4 years ago
Posts: 278
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The addition of ability for user to set a simple growth adjustment factor would be beneficial to the actuarial method.

User could set growth to increase or decrease yearly amortized spending amount in order to, for instance,

  • You want to spend a little more toward the beginning of retirement when you are healthy to enjoy it, thereby taking out less when you are old.
  • You want to take out a little less at the beginning of retirement in order to ensure you'll have a bit more toward end of life when expenses increase.
  • The "natural" actuarial withdrawal shape in Pralana doesn't quite match your preference, and you want to flatten it.

Here's a spreadsheet to show what I'm talking about.

Simple tweak to the discount rate make the actuarial spending routine more powerful.



   
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