NYU Optimal Retirement Withdrawal Strategy Conference
May 1, 2008
ORP was a presentator.
For Details

The Optimal Retirement Planner

The Big Picture of Retirement Financial Planning

Before Retirement

Tax-deferred Savings Accounts	Max out tax-deferred contributions (IRA, SEP, 401K, etc.). Reduce taxes now, enjoy the benefits later.
The Miracle of Compounding	Investments give off returns which are reinvested, which then give off more returns. The earlier the investment the more money for retirement. Tax-deferred savings compound to larger amounts than do conventional savings because they are not taxed each year, only when they are withdrawn.

After Retirement

Compounding Continues	Even after retirement, when contributions stop and withdrawals begin, the portfolio continues to grow for some years thanks to compounding.
Inflation	The wrecker of retirement plans. The good news is that Federal fiscal and monetary policies are providing price stability.
Taxes	The graduated personal income tax on tax-deferred withdrawals sometimes challenges the conventional wisdom of withdrawal strategies.
Optimal Withdrawal Strategy	Optimization maximizes after-tax retirement spending by annually minimizing taxes while meeting minimum withdrawal requirements.

Taxonomy of Retirement Calculators

Google Retirement Calculator and over 2 million hits are returned. See links for a small sample of retirement calculators.

Retirement calculators can collected into these classes:

Calculators that compute the year of retirement that the money runs out.

Calculators that compute how much will have to saved between now and retirement.

Calculators that compute the rate of return retirement assets will have to produce

Calculators that compute the probability that retirement goals can be met.

Calculators that compute the amount of after tax, inflated money that will be available for spending throughout retirement.

The last class has only one member -- The Optimal Retirement Planner (ORP). This is because ORP is more than a calculator; ORP is an optimizer.

Definition: Optimization - a mathematical technique for finding the maximum of a function of many variables subject to a set of constraints. To put it another way; optimization is the selecting of the set of choices that makes the most money without breaking any of the rules

ORP offers insights into both phases of the retirement cycle:.

Before retirement ORP demonstrates the growth, through compounding, in retirement plan value.

After retirement ORP maximizes the money available for spending during retirement.

ORP does not ask for estimated annual expenditures. Instead, ORP shows how much after-tax, inflation adjusted money will be available for spending each year.

is a retirement planner like no other!

ORP maximizes retirement cash flow from investment returns and drawing down the account's capital to a given estate level at the end of the plan. ORP's linear programming optimizer maximizes the cash available for spending during retirement by modeling compounding investment returns, inflation, income taxes and minimum withdrawal requirements.

Everyone needs to do retirement planning!

	1961-1981 Max out that 401K!
	1943-1960 Early Retirement?
	1925-1942 Into Retirement.

ORP is supported by Sundown Software Systems which provides the linear programming model formulation and optimization software. Sundown Software Systems and James S. Welch, Jr. are not engaged in the sale of financial products or services.

Use of the ORP optimizer is free and private. ORP is available for use without warranty of any kind.

We ask that you tell us how you heard of ORP and contribute your opinion about this site by sending us an e-mail at orplanner@gmail.com

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