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Articles about ORP and retirement

Journal Articles - Studies Using ORP

The Phases of Retirement

Far from being the quiet twilight of life retirement is a bumpy collection of extraordinary events and phases. Phases are the intervals between life changing events that may require large spending in the year of the event or trigger a change in spending levels, or both. Examples of life changing events are downsizing to smaller living quarters, loss of spouse, or broken hip.

Draft of a paper in preparation.

Mitigating the Impact of Personal Income Taxes on Retirement Savings Distribution

A study demonstrating the superiority of optimal withdrawal schedules over the conventional wisdom of depleting the taxable account first, the the IRA, and finally the Roth IRA.

Journal of Personal Finance - Volume 14, Issue 1, Spring 2015, Page 17

A Three Step Procedure for Sustainable Retirement Savings Withdrawals

Anecdotal evidence indicates that some ORP users run ORP annually to determine their savings withdrawals for the current year and their disposable income for the year's spending budget. This study demonstrates that from a historical perspective this is a safe and efficient policy.

Journal of Financial Planning 30 (8): Pages 45-55.

Measuring the Financial Consequences of IRA to Roth IRA Conversions

IRS regulations permit the conversion of IRA savings to a Roth IRA, providing that income taxes are paid on the conversion. This study shows that while conversions have only a small effect on total disposable income the effect on when taxes are paid is large.

Journal of Personal Finance - Volume 15 Issue 1, Spring 2015, Page 47-55

A Quantitative Evaluation of Four Retirement Spending Models

Most retirement calculators assume constant spending, adjusted for inflation, throughout retirement. Studies show that retiree spending patterns are not constant but vary by the age of the retiree. This paper demonstrates the consequences of adapting the alternate spending models proposed by researchers.

Journal of Personal Finance - Volume 14 Issue 2, Autumn 2015, Page 43

Working Papers

ORP Overview - A description of ORP's purpose and capabilities.

Introduction to ORP - A brief introduction into ORP as an Linear programming application and a review of ORP's important assumptions.

ORP Model Description - How ORP does optimal distributions from Tax-Advantaged Retirement Accounts

ORP server architecture - A diagram of ORP's structure and principle components.

The Use of Historical Averages - A discussion of the pros and cons of using constant averages to represent investment rates of return and other rates in retirement plan modeling.

Consequences of Not Modeling Income Taxes - A brief discussion on the importances of including progressive income taxes in retire models.

A Comparison of ORP and Forecaster3 - Forecaster 3 is a retirement plan simulator the is available on the Internet at no charge. This document contrasts ORP's optimization to Forecaster 3' simulation.

White Papers

A Monte Carlo Linear Programming Implementation - A description of how ORP's Monte Carlo option is integrated into a linear programming application.

A Critique of Monte Carlo Retirement Calculators - A discussion of the use and abuse of the Monte Carlo method in retirement planning calculators.

Validating the Optimal Retirement Planner - A paper that discusses the validity of ORP's optimal plans.

A Comparison of ORP to Other Retirement Planning Tools - Compares ORP's input parameter set to an industry standard.