Legacy & Sustainable Withdrawal In Retirement Portfolio

It’s often said that the ideal retirement is one in which you spend your last penny on your last day on earth. The last cheque you write should be to the undertaker, and it should bounce.

This might explain why discussion around sustainable income in retirement tends to revolve around making it to your deathbed without just enough money in the bank. We often define term ‘Success Rate’ or ‘Probability of Success’ as the percentage of scenarios in which the portfolio ends up with a balance of £1 or more.

The reality is that most retirees do want to leave a legacy to the people they care about. So what if we change the definition of success rate to reflect the percentage of scenario that the portfolio leaves the desired legacy?

In this video, we use Timeline software to illustrate how we to take factor legacy into account when considering the sustainability of income from a retirement portfolio.

Abraham is the Founder and CEO of Timelineapp. He has authored the Beyond the 4% rule book, written several industry papers and delivered many talks. He holds a master’s degree from Coventry University and an alphabet soup of designations, including the Investment Management Certificate, Chartered Financial Planner and Chartered Wealth Manager.


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