Today, in another virtual case study, I would like to show how withdrawal rates can be determined that preserve the initial capital. Such a calculation is useful, for example, when one wants to protect assets over generations.

Ben turned 55 this year and has been considering retirement for some time. He has already saved up a nice stock portfolio during his working life, currently worth 500,000€, and is also entitled to a pension. More importantly, however, he has a large life insurance policy that will bring him a payout of a round million $ on his 65th birthday in January 2032.

Ana has just turned 25 and successfully finished her college degree a few weeks ago. She is now starting her first real job as a project manager in a large corporation. Ana is a little bit concerned about how to provide sensibly for the future and therefore wants to invest part of her salary in a broadly diversified stock ETF from the very beginning.