Portfolio Failure vs. Death Risk cool tool

[Toddtheformeraccountant]

A great little tool I found that really helps to put in perspective the real "risk" of early retirement failure when considering death.

Simple proposition: If there is a 10% chance of portfolio failure in 30 years....but your likelihood of death within 30 years is 50%...then your real risk of portfolio failure that you care about is 5%.

This tool visualizes that over all time periods and factoring in risk profiles.

Here is the link....suggest you check it out, it's pretty cool.

Will Your Money Last If You Retire Early? Visualizing Longevity Risk - Engaging Data

 

[REWahoo]

Here is a thread from a few days ago discussing the tool: http://www.early-retirement.org/forums/f28/another-take-on-firecalc-92360.html

 

[samclem]

A great little tool I found that really helps to put in perspective the real "risk" of early retirement failure when considering death.

Here is a thread from a few days ago discussing the tool: http://www.early-retirement.org/forums/f28/another-take-on-firecalc-92360.html

REWahoo, thanks. That thread provides some points about the shortcomings of this calculator. Bottom line--it significantly understates the likely expected remaining lifespan for the population of people who would be likely to use such a calculator. Anyway, we can continue the good discussion in the thread REWahoo linked to.