Planned

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Add option to treat running out of money in the final year as a "Success"

The goal of spend-maximizing actuarial strategies is to die with an estate/legacy equal to zero, which can result in PL grossly overestimating the failure rate of those WSs when “Spend Strategized Amount” is selected due to (sometimes minor) overspending in the last year of life.

Suggestion is to add a checkbox in MC config labeled “Count running out in the last year as success”. This checkbox could perhaps be within MC overall setting, or perhaps in the configuration options for each of the spend-maximizing actuarial Withdrawal Strategies.

4 votes

Tagged as Suggestion

Suggested 05 February 2024 by user Straight Flush

Moved into Planned 05 February 2024

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  • 05 February 2024 Straight Flush suggested this task

  • 05 February 2024 Kyle Nolan moved this task into Planned

  • avatar
    Mike Bendtsen

    Would like to see this as an option at an account level. Would like to have my HSA run to zero by the last year in my plan. Or my Cash Value in my Whole Life Insurance be zero 3-yrs before my end-of-plan…

    10 April 2025
  • avatar
    Bryan Osborn

    Could we expand this feature to allow configuring a value other than ‘0’ as the minimum acceptable final end state? This gets at legacy planning at least in a very rough sense. I need to leave money for my disabled child, so this a core part of my planning.

    To get more sophisticated, this brings in the fact that life expectancy is a random variable. What I’d really like to say is… “My net worth can never drop below X, should I pass that year.” X needs to be a function of time to model this correctly in my situation, but anything in that direction would be a big help.

    30 November 2025