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Optimal certainty-equivalent spending retirements with DataNitro

18 pointsby karamazovover 11 years ago

1 comment

saalweachterover 11 years ago
You can die penniless with <i>way</i> less math than that.<p>The problem I have with this analysis is that -- at least with my first read-through -- it has no floor on income. It&#x27;s just trying to maximize the amount of money spent during your lifetime, with the only penalty for spending early being that you don&#x27;t earn interest on the money later in life.<p>The question most people want answered involves a floor to the amount of money they have to spend in the year. If I spend all my money at age 90 and manage to live to age 91, my regret isn&#x27;t the 5% interest I missed out on, it&#x27;s that I&#x27;m now destitute and homeless at age 91.<p>How do I maximize my expected lifetime spending while maintaining some floor on my annual spending?
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