An Age-Based, Three Dimensional, Universal Distribution Model Incorporating Sequence Risk
Larry R. Frank Sr.
Academy of Financial Services; Better Financial Education; Certified Financial Planner Board (CFP)
John B. Mitchell
Central Michigan University - Department of Finance and Law
David M. Blanchett
Unified Trust Company, NA
April 11, 2011
The authors develop an Age-Based Three Dimensional Distribution Model that illustrates a retiree transition from early retirement into later retirement, including superannuated years for the long-lived who continue to survive. The model for this concept development simultaneously: 1) Establishes an age-based distribution model; 2) Incorporates current age life expectancy directly into the model; 3) Addresses survivorship into superannuated ages; 4) Addresses sequence risk to incorporate decisions due to market changes as the retiree ages.
Number of Pages in PDF File: 25
Keywords: Retirement Planning, Adjustable Withdrawal Rates, Sequence Risk, Probability of Failure, Expected Longevity
JEL Classification: D14, D81, D90, G11, G17
Date posted: May 24, 2011 ; Last revised: May 11, 2016