calc_retirement_ruin {R4GoodPersonalFinances} | R Documentation |
Calculating retirement ruin probability
Description
Calculating retirement ruin probability
Usage
calc_retirement_ruin(
portfolio_return_mean,
portfolio_return_sd,
age,
gompertz_mode,
gompertz_dispersion,
portfolio_value,
monthly_spendings,
yearly_spendings = 12 * monthly_spendings,
spending_rate = yearly_spendings/portfolio_value
)
Arguments
portfolio_return_mean |
A numeric. Mean of portfolio returns. |
portfolio_return_sd |
A numeric. Standard deviation of portfolio returns. |
age |
A numeric. Current age. |
gompertz_mode |
A numeric. Gompertz mode. |
gompertz_dispersion |
A numeric. Gompertz dispersion. |
portfolio_value |
A numeric. Initial portfolio value. |
monthly_spendings |
A numeric. Monthly spendings. |
yearly_spendings |
A numeric. Yearly spendings. |
spending_rate |
A numeric. Spending rate (initial withdrawal rate). |
Value
A numeric. The probability of retirement ruin (between 0 and 1), representing the likelihood of running out of money during retirement.
References
Milevsky, M.A. (2020). Retirement Income Recipes in R: From Ruin Probabilities to Intelligent Drawdowns. Use R! Series. doi:10.1007/978-3-030-51434-1.
Examples
calc_retirement_ruin(
age = 65,
gompertz_mode = 88,
gompertz_dispersion = 10,
portfolio_value = 1000000,
monthly_spendings = 3000,
portfolio_return_mean = 0.02,
portfolio_return_sd = 0.15
)
[Package R4GoodPersonalFinances version 1.0.0 Index]