TITLE

A Dynamic and Adaptive Approach to Distribution Planning and Monitoring

AUTHOR(S)
Blanchett, David M.; Frank, Sr., Larry R.
PUB. DATE
April 2009
SOURCE
Journal of Financial Planning;Apr2009, Vol. 22 Issue 4, p52
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article presents information on retirement income planning. A dynamic approach which adjusts the withdrawal rate in order to maintain sustainability is presented. It is noted that this adaptive approach is more realistic and better in terms of risk management than a static rate of withdrawal. Examples are presented which illustrate the changing probabilities of a person outliving their savings as they age. A gradual increase in withdrawal rates would balance a shrinking potential time for distribution. Furthermore, annually reviewing withdrawal rates allows adjustments based on portfolio performance. It is said that the guidelines presented in this article are easier to implement than some previous methods of monitoring and adjusting distribution.
ACCESSION #
37830543

 

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