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Investment
Income Contest
Objective
The
objective is to sustain the maximum possible investment income
withdrawal rate for 30 years.
Contest
Rules
| 1. |
You
must use the most current version of the Investment Income
Simulator (version
3.04). |
| 2. |
You
must use the Advanced Version tab of the Investment Income
Simulator Excel file. |
| 3. |
You
can use any Beginning Capital value and corresponding Initial
Income value that you like. Withdrawal Rate = (Initial
Income / Beginning Capital) X 100% |
| 4. |
A
qualifying withdrawal rate must be at least 0.01 higher than
the previous record. So for example if the current
record for a given difficulty level is a withdrawal rate of
5.00%, your entry must be at least 5.01% to qualify as a new
record. |
| 5. |
The
Inflation rate must be set to 3.0% . |
| 6. |
The
Fixed-Rate Return must not exceed 4.0%. |
| 7. |
The
High-Yield Dividend rate must not exceed 5.0% and the Blue-Chip
Dividend rate must not exceed 3.0%. |
| 8. |
You
must not adjust the income from it's original value. In
other words the goal is to see if you can maintain steady
income increasing 3% per year for 30 years. |
| 9. |
You
must NOT use the Repeat feature to re-run the same
scenario! Yes, we know this makes it much harder.
But if one knows the rates of
return or even the difficulty level in advance, it is unrealistically
easy to navigate the scenario. This means that you will have to
choose a
withdrawal rate without knowing the difficulty level of the upcoming
scenario...just like real-life! |
When the
above contest rules are followed, the withdrawal rate shown at the top of the
Income column will be displayed as green text.
Submissions
To
submit a record withdrawal rate, save a copy of the Investment
Income Simulator Excel file and
email it to: highscore@isgplanning.com
along with your name as you would like it displayed. Once
validated we will post your name along with a screen shot of your
winning strategy.
Disclaimers
The
maximum withdrawal rates that can be achieved with the Investment
Income Simulator depend upon
the investment rates of return that the Monte Carlo algorithm
generates. We have strived to design the algorithm such that
it generates rates of return that mirror actual historic stock market
patterns. However past performance is never a guarantee of
future results. Future rates of return may be lower than the
rates of return that the software generates.
We don't advocate pushing the withdrawal rate to the
outer limits in the real world. But within the context of a
game, it is a measure of strategy and skill. We hope to
illuminate the techniques that will also serve
investors well for maintaining reasonable levels of
investment income.
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