Suggestions

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Dynamic spending in retirement

Allow for dynamic spending in retirement, dependent on performance of stock market.

This obviously would have to be linked with the Monte Carlo module, rather than the fixed growth module.

This and other features could allow ProjectionLab to start being used for retirement planning

17 votes

Tagged as Suggestion

Suggested 19 July 2022 by user Nadav

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  • 19 July 2022 Nadav suggested this task

  • 20 July 2022 Kyle Nolan approved this task

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    shlomi dvir

    This relates to another suggestion (proposed by the user ‘’Ronnie Sandsof’) to integrate a dynamic strategy called risk-based guardrails (not Gyton-Klinger).

    It fulfills your request, as it is designed to manage portfolio withdrawals in response to changing market conditions/fluctuations and the portfolio’s current value. When the portfolio performs well, withdrawals can be higher, but when performance is poor, it is automatically reduced to avoid overspending.

    It works by setting a target success probability (e.g., an 80% chance of the portfolio lasting through retirement). If the portfolio is underperforming, the strategy lowers the withdrawal rate to maintain that probability. Conversely, if the portfolio is performing well, it allows higher withdrawals, increasing the chances of achieving financial goals without running the risk of early depletion.

    06 March