Jul 21, 2017

3D cost of safety - an extended version

Here is another data visualization that was fun but won't (yet, I think) add value.  This below takes the data from simulation[1] for 4 fixed, constant inflation adjusted (and presumably inelastic) spend rates (25k, 35k, 50k, and 100k) and then sees what the relationship is between those spend rates and effective spend rates at each wealth level and the related fail rate.  This was just to see what it looked like.  This is an extension of a prior post on "cost of safety." I was going to try to create a rotating gif but it was taking too much time. Maybe next week.



For four different constant spend rates: relationship 
between wealth level, effective spend rates, and 
fail rates.



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[1] Endowment 500k:4M by 100k, age 59, SS at 70, return suppression for 10 years, 50/50 allocation, etc.

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