The only spending rule article you will ever need

• Autores: M. Barton Waring, Laurence B. Siegel
• Localización: Financial analysts journal, ISSN-e 0015-198X, Vol. 71, Nº. 1, 2015, págs. 91-107
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • After examining an array of approaches to determining a spending rule for retirees, the authors propose the annually recalculated virtual annuity. Each year, one should spend (at most) the amount that a freshly purchased annuity�with a purchase price equal to the then-current portfolio value and priced at current interest rates and number of years of required cash flows remaining�would pay out in that year. Investors who behave in this way will experience consumption that fluctuates with asset values, but they can never run out of money.