• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2017 Vol.8(4): 194-197 ISSN: 2010-023X
DOI: 10.18178/ijtef.2017.8.4.562

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Retirement Portfolio Realities: The Mathematics of Survival

Craig L. Israelsen
Abstract—This paper deals with several important retirement questions: “How much money do I need in my investment portfolio at the start of retirement?” and “How much can I safely withdraw from my investment portfolio during the retirement years?” This paper introduces the novel concept of “RAM” or Retirement Account Multiple. The mathematics of income replacement in retirement are demonstrated and the historical survival of two different retirement portfolios are reviewed over a 90-year period from 1926-2015.

Index Terms—Diversified retirement portfolio, income replacement in retirement, retirement account multiple (RAM), withdrawal rate.

Craig L. Israelsen is with the faculty of the Woodbury School of Business, Utah Valley University, Orem, Utah, 84058 (e-mail: craig@7TwelvePortfolio.com).


Cite: Craig L. Israelsen, "Retirement Portfolio Realities: The Mathematics of Survival," International Journal of Trade, Economics and Finance vol.8, no.4, pp. 194-197, 2017.

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