Document Type


Publication Date

Spring 2008


Much research has addressed the question of how much money can safely be withdrawn from a retirement portfolio without prematurely running out of money (shortfall risk). Instead of constant (inflation adjusted) annual withdrawals, this study uses withdrawal amounts (and optionally, asset allocations) that are modified every five years over a 30-year withdrawal horizon. A bootstrap is used initially to obtain the conditional probability rules. Further simulations demonstrate that periodic (every five years) adjustments can decrease the risk of running out of money as well as increase the amount withdrawn, as compared to a “constant withdrawal amount” strategy

Citation/Publisher Attribution

Spitzer, J. J. (2008). Retirement withdrawals: an analysis of the benefits of periodic "midcourse" adjustments. Financial Services Review, 17(1), 17-29.

Publisher Statement

© 2008 Academy of Financial Services. All rights reserved.

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