An Age-Based, Three Dimensional, Universal Distribution Model Incorporating Sequence Risk

25 Pages Posted: 24 May 2011 Last revised: 1 May 2016

See all articles by Larry R. Frank Sr

Larry R. Frank Sr

Better Financial Education; Academy of Financial Services; Certified Financial Planner Board (CFP)

John B. Mitchell

Central Michigan University - Department of Finance and Law

David Blanchett

PGIM

Date Written: April 11, 2011

Abstract

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.

Keywords: Retirement Planning, Adjustable Withdrawal Rates, Sequence Risk, Probability of Failure, Expected Longevity

JEL Classification: D14, D81, D90, G11, G17

Suggested Citation

Frank Sr, Larry R. and Frank Sr, Larry R. and Mitchell, John B. and Blanchett, David, An Age-Based, Three Dimensional, Universal Distribution Model Incorporating Sequence Risk (April 11, 2011). Available at SSRN: https://ssrn.com/abstract=1849983 or http://dx.doi.org/10.2139/ssrn.1849983

Larry R. Frank Sr (Contact Author)

Academy of Financial Services

La Crosse, WI 54601
United States

HOME PAGE: http://academyfinancial.org

Better Financial Education ( email )

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HOME PAGE: http://www.BetterFinancialEducation.com

Certified Financial Planner Board (CFP) ( email )

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John B. Mitchell

Central Michigan University - Department of Finance and Law ( email )

328 Sloan Hall
Mount Pleasant, MI 48859
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David Blanchett

PGIM ( email )

Two Gateway Center
Sixth Floor
Newark, NJ 07102
United States
859-492-5637 (Phone)

HOME PAGE: http://www.davidmblanchett.com

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