This is parts of chapter 7 who those who prefer code or spreadsheets over the analytical solutions and graphs given in the book.
https://gist.github.com/tadeoos/2835c22 ... cde14a5efb
ERE math (chapter 7)
Re: ERE math (chapter 7)
What I'm hoping to see at some point is an actuary knowledgeable in life insurance mathematics take a crack at the topic.
Obviously you can derive the amount of time worked for any number of accumulated expenses (1/withdrawal ratio) from the starting capital, interest rate and savings rate -- see below -- but that doesn't factor into account mortality and the desired ruin probability / probability of exhausting the stash before death.
Obviously you can derive the amount of time worked for any number of accumulated expenses (1/withdrawal ratio) from the starting capital, interest rate and savings rate -- see below -- but that doesn't factor into account mortality and the desired ruin probability / probability of exhausting the stash before death.
-
- Site Admin
- Posts: 16373
- Joined: Fri Jun 28, 2013 8:38 pm
- Location: USA, Zone 5b, Koppen Dfa, Elev. 620ft, Walkscore 77
- Contact:
Re: ERE math (chapter 7)
See https://engaging-data.com/will-money-last-retire-early/xmj wrote: ↑Fri Jan 27, 2023 3:18 amObviously you can derive the amount of time worked for any number of accumulated expenses (1/withdrawal ratio) from the starting capital, interest rate and savings rate -- see below -- but that doesn't factor into account mortality and the desired ruin probability / probability of exhausting the stash before death.
Re: ERE math (chapter 7)
This is a great find, thanks Jacob, I think I'm going to rewrite this into an Org file for my own reference; it should solidify my understanding better.
Re: ERE math (chapter 7)
I've since solved this by ChatGPT-enabled learning about ruin theory and have a few Jupyter Notebooks I'll one day clean up and throw on Github.xmj wrote: ↑Fri Jan 27, 2023 3:18 amWhat I'm hoping to see at some point is an actuary knowledgeable in life insurance mathematics take a crack at the topic.
Obviously you can derive the amount of time worked for any number of accumulated expenses (1/withdrawal ratio) from the starting capital, interest rate and savings rate -- see below -- but that doesn't factor into account mortality and the desired ruin probability / probability of exhausting the stash before death.