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This document provides information on life expectancy and portfolio sustainability based on retirement at age 55. It shows that with a portfolio consisting of 60% equities, a 3.7% withdrawal rate has a 10% probability of failure, while a 4% withdrawal rate has a 15% probability of failure. It also lists portfolio values and withdrawal rates that correspond to higher probabilities of failure, such as a 4.3% withdrawal rate resulting in a 20% probability of portfolio failure.
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- 1. 2012 Life Expectancy Based on Outlive Oldest Birth Year: 1955 Note: Expected Longevity = 50% % and Retiring at Age 55 Youngest Birth Year: 1955 Joint Female Male Longevity Percentile 50% 89 85 81 Target POF 10% 34 30 26 Portfolio % Decline Probability of Failure (POF) @ WR%: LTP Equity ~ 60% Required: WR%: POF Sustainable @ Lowest Current LTP Value= $631,894 3.70% 10.00% POF @ Port. Value $582,423 7.8% 4.00% 15.00% $1,282 Sustainable $539,830 14.6% 4.30% 20.00% $1,187 Dist. $$ per Routine Operations $508,627 19.5% 4.55% 25.00% $1,118 month. Reserve Mos. 36 Monthly Distr. 1,470 $17,640.00 <Ann Distrib. Target ($Y) Emergency Procedures