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When you reach retirement, four major decisions will determine the bulk of your financial future. This article is about two of those decisions:
• How much income do you need or want from your retirement portfolio?• Do you need a fixed stream of income you can count on, or can you tolerate cash flow that goes
up and down depending on the success of your investments?
You may have saved for decades and invested your money carefully. But when the money must start flowing in the opposite direction – from your portfolio to you – you are suddenly faced with a whole new set of challenging choices.
This article is built around six tables of numbers that should be of interest to anyone who is retired or who is planning for retire-ment. These tables, found at the end of this article, are extremely useful to us when we work with clients.
Before we dig in, let’s back up for a moment. I mentioned four major financial decisions that will shape your future once you re-tire. In addition to the two we are examining here, the other two are:
• How will you invest your money?• How much risk will you take with your investments?
These last two questions are related. You will find our recommendations for how to invest, along with the reasons for those recommendations, in an article called, “The ultimate buy and hold strategy.” That article tells you what kinds of stocks and what kinds of bonds are most likely to give you the best long-term returns, based on all the history we can get our hands on.
However, that article leaves out one very important thing. It doesn’t tell you how much of your port-folio should be in stocks and how much in bonds. That is related to risk, which is the topic of another important article called, “Fine tuning your asset allocation.”
Taking money from your portfolioBack to the topic at hand. Only you can answer the question of how much you need or want from your portfolio and whether you can handle a variable income instead of a fixed one. Every situation is different, and you will probably get the best answers with the help of a professional financial advisor.
Without knowing all your circumstances, I cannot give you the answers that are best for you.
Four major financial
decisions will shape your future once you retire.
Retirement distributions: How much can you afford?Paul MerrimanJuly 2011
In this 2011 update to the article previously titled “How much money can you prudently take out of your investments in retirement,” Paul walks through six different distribution scenarios to show you what your retirement could look like financially.
Page 2 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
However, in this article I will give you a head start in thinking about the questions, something that should be extremely helpful preparation for a meeting with an advisor.
This article has been a favorite of readers on our web site for quite a few years. It used to be called, “Retirement: When your portfolio starts paying you.” You are reading a 2011 update of a major revision we published in the spring of 2009.
Because of investors’ concern about future inflation, the distributions shown in three of the six tables have been adjusted for actual inflation that occurred during the years in this study. Prior to 2009 we simply assumed a steady rate of inflation, an approach that’s simple on paper but does not reflect real life.
This article describes three possible withdrawal rates: 4 percent, 5 percent and 6 percent. We start with 5 percent, a good ballpark figure for many people. However, 5 percent may be too conservative for some investors and too aggressive for others.
The tables that go with this article show returns of globally diversified portfolios built with Dimensional Fund Advisors mutual funds. These portfolios are similar, but not identical, to those we manage for clients. Returns are net of assumed management fees of 1 percent annually plus applicable transaction costs. Percentages in the top row indicate various combinations of equities and fixed income.
Fixed income vs. variableA major decision you make when you retire is whether you will choose a fixed withdrawal plan or a flexible one. I’ll start by describing the fixed withdrawal plan.
For the purposes of this article, I am going to assume three things:
• You retire with a portfolio worth $1 million;• You need to supplement your other income (Social Security, pension, rental income and so forth)
by taking $50,000 from your portfolio the first year;• You will need to adjust that annual withdrawal every year to keep you protected from inflation.
We will refer to this plan as a fixed distribution schedule. Although the withdrawal each year will change, you will maintain a fixed amount of spending power each year as determined by changes in the Consumer Price Index.
Studying the numbersTable 1 shows the results of doing this starting with 1970, the earliest year for which we have full data.
If you are not used to looking at a table like this, here’s a quick guide. On the far right side is a column showing the actual distribution every year, which is derived from actual inflation in the previous year. For example, inflation in 1970 was 5.66 percent, and that raised the 1971 distribution to $52,830.
The other columns show the year-end values of the portfolio for various asset allocations. The portfolios begin on the left with the most conservative and become more aggressive as you move to the right.
In real life, inflation doesn’t
occur at a steady rate.
Page 3 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
You will notice immediately that there is some white space at the bottom of six of those columns. The reason is simple: those six portfolios ran out of money under these assumptions.
For example, if you had invested exclusively in the Standard & Poor’s 500 Index, by the end of 1991 your portfolio would have been worth only $182,041 (down from $1 million to start) and just barely able to pay you the $177,604 you needed in 1992 to match the spending power of the $50,000 you took out in 1970. After that, there was almost nothing left.
You will see that the more conservative portfolios on the left also ran out of money at various points. Six of the globally diversified portfolios held up all the way through these 41 years--longer than most people’s retirements--and five of those six had plenty of assets remaining at the end of 2010.
The obvious conclusion is, at least for the pattern of returns and inflation in these years, a prudent investor needed to have at least 50 percent of his or her portfolio in equities.
A balancing actRisk and return are a balancing act, and Table 1 shows it. Investors who were unwilling to risk having a good deal of their portfolios in equities eventually wound up taking the greater risk of running out of money. On the other hand, investors who sought higher long-term returns by owning more equities had to somehow keep their faith during the first few years of retirement. That was not a piece of cake.
Note that the 100 percent global equity portfolio dropped in value to $740,423 at the end of 1974. That had to be frightening for retirees who had started with $1 million. In hindsight, we can see that it all worked out quite well from that point forward, but there was no way to know that in January 1975 as the plan called for removing nearly $69,000 from that portfolio.
Another thing that jumps out at me from Table 1 is the cumulative effect of inflation. It’s very easy to dismiss inflation as a minor financial force, but as the distributions column in this table shows, inflation can be very powerful. What started out as a “mere” $50,000 in 1970 became $101,810 only 10 years later.
Before leaving this table, let me point out one other pretty interesting number that you’ll find at the bottom, labeled “Total Distribution” – nearly $6.5 million. That figure means the six portfolios that survived all these years paid out about $6.48 for every $1 they started with.
In addition, if you adjust the portfolio values at the end of 2010 for cumulative inflation, the globally diversified portfolios with allocations of 60 percent or more began 2011 with more spending power than they had at the start of 1970. Not bad at all, considering all the income they had generated in the meantime.
(Future returns will be different from those shown here, and inflation will be different. So, don’t take these numbers as results you can expect.)
Flexible distributionsNow that you know how to read this table, I’d like to move on to another dimension: a flexible distribution plan. I have long believed that one of the ultimate financial luxuries in life is to have saved enough money to take flexible distributions in retirement.
Inflation can be very powerful.
Page 4 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
The ultimate financial luxury? Having enough
money to take flexible
distributions in retirement.
A flexible distribution is one that changes, but not according to inflation the way we have shown in Table 1. In this case, the yearly distribution goes up and down according to the value of the portfolio. In other words, it automatically does what most smart retirees would naturally want to do if they could: take out more money after good investment returns and scale back on withdrawals when the portfolio is suffering.
Recall for a moment the first five years in Table 1. The retiree who followed that plan got more money every year, regardless of what the stock market was doing. His withdrawals were insulated from the big bad bear market of 1973 and 1974.
Table 2 shows a flexible distribution plan that also started out with a $50,000 withdrawal in 1970. But this time, subsequent distributions began with a drop, reflecting the market. Eventually the flexible distributions regained that $50,000 level, but in the meantime our theoretical retiree had to live on less real money than he had started with.
The layout of Table 2 is slightly different from that of Table 1, because each year’s distribution was different for each portfolio allocation.
You can see that in 1975, the distribution in each column was at its low point, reflecting the stock market’s dismal performance in the previous two years. From there they went up, though gradually.
By 1987, flexible-plan distributions (Table 2) were higher than fixed-plan ones (Table 1) in the 50 percent and 60 percent global equity portfolios, and they stayed ahead from that year forward.
However, for the second through 17th years of retirement, investors in the flexible plan had to make do with less purchasing power than they had in 1970.
You call that an ultimate luxury?
You may be wondering why anybody would be willing to embark on a flexible plan like this. It’s a very good question.
Recall what I said earlier: “I have long believed that one of the ultimate financial luxuries in life is to have saved enough money to take flexible distributions in retirement.”
For example, imagine you retired needing $50,000 a year from your portfolio, but instead of $1 million, your portfolio was worth $1.5 million at the start of 1970. In that case, every distribution would be 1.5 times as great as shown in Table 2.
Your first-year distribution would give you 50 percent more money than you really needed, allowing you to spend money on some of the extras you are likely to desire in your first year of retirement.
Using the 60 percent equity globally diversified portfolio for an example, the low point of your distributions would be (again in 1975) $66,438, or 1.5 times the $44,292 shown in Table 2. Table 1 tells us that in 1975 it required $68,891 to match the spending power of $50,000 in 1970. If all you could spend that year was $66,438, you would have tightened your belt a little bit but not a great deal.
Page 5 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
And two years later, in 1977, you would have $91,299 to spend in the flexible plan. That’s comfortably above the $77,254 it would have taken to keep up with your $50,000 cost of living plus inflation. From that point forward, your flexible distributions would have keep going up nicely.
At least as important, your portfolio would have easily survived for 41 years, longer than most retirees are likely to live. Remember, this seemingly abundant retirement was possible because you had saved 1.5 times as much as you really needed.
Fixed vs. variableHere’s my take on fixed versus variable. If you have saved more than enough money to meet your needs with an inflation-adjusted withdrawal rate, you may be able to afford a flexible distribution plan where what you take out of the portfolio is determined by your investment results instead of by inflation.
Based on the years in this study, this could give you peace of mind knowing you are less likely to run out of money. It may leave more for your heirs, and it is likely to give you more spending power at some point in your retirement years. However, exactly when that happens, or whether it happens at all, is entirely dependent on patterns of market return that are highly unpredictable.
My advice, therefore, is to save more than you think you will need. I doubt very much that I will ever get a call from you complaining about the awful trouble you are in because you took my advice and saved too much money. If I do get that call, we will have an interesting conversation.
Take out more? Take out less?There is nothing cast in stone about taking 5 percent from a retirement portfolio every year. As we saw in Tables 1 and 2, the withdrawal rate would have worked well for many combinations of assets in the period starting in 1970. Each combination in Table 2 ended 2010 with more purchasing power than it started with 41 years earlier.
Many people want to take out more. So, I’m going to show you the hypothetical result of that in Table 3, based on a $1 million starting portfolio value and an initial withdrawal of $60,000.
Other people, for various reasons, may want to be more conservative and take out less. You will find that true in Table 4, based on an initial withdrawal of $40,000, or 4 percent of the initial $1 million.
Before you look at more of these tables, can you guess what they will look like? If you withdrew money at a rate of 6 percent instead of 5 percent, would you expect the portfolio values after a few years to be more than in Table 1? Or less?
Right! The portfolio values would logically be lower after some years of withdrawing money at a higher rate. That’s just what you see in Table 3 . In fact, you can see only three of those portfolios survived all the way to the end of 2010. And one of those three, the 80 percent global equity mix, obviously was in its last days; it had less than $1 million left from which to pay out more than $300,000 a year.
My advice: save more
than you think you will need.
Page 6 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
That leaves only the 90 percent and 100 percent columns in the long-term running. Both of them represent portfolios involving more risk than I think is appropriate for most retirees. Remember, this is a plan for people who really need that $60,000 a year and who don’t have much tolerance for failure.
For people with relatively short life expectancies and no burning desire to leave money to their heirs, this might work. But, for most people, I don’t think it’s the right plan.
Now turn to Table 4 , in which (as you no doubt guessed without looking at it) almost all the portfolios held up very well for many years. The difference is the low withdrawal rate, akin to “sipping” from the portfolio instead of “drinking” or “gulping”. Over 41 years, all the portfolios with 30 percent or more in equity, even the undiversified Standard & Poor’s 500 Index, survived just fine.
For investors who can meet their needs while taking out only 4 percent of their assets and who want to leave significant assets to their heirs, this could be a very desirable plan.
Table 5 and Table 6 show the results from flexible distribution plans at 6 percent and 4 percent. You now know how to read these tables, and you can draw your own conclusions. Again, I believe flexible distributions are most appropriate for people who have over-saved.
If you assume starting portfolios of $1.5 million, instead of the ones shown here, you can multiply each distribution by 1.5 and see that in most cases those retirees would have had a good ride.
Lessons from these numbersIf this discussion leaves you with only one lesson, I hope it is the value of having more money, instead of less, when you retire.
Of course we don’t always have a choice about when we retire. In those cases our resources are whatever they are, and our challenge becomes making the most of them. These tables will help you think about how to do that based on your own circumstances.
If you are ready (or think you’re nearly ready) to retire, the tables in this article may help you form a general idea of what your retirement could look like financially.
One simple way for many people to improve their financial outlook in retirement is to work a few extra years.
This has at least four important benefits. First, additional years on the job will let you add more to your savings. Second, your portfolio has more time to potentially grow before it has to start paying you. Third, after your retirement your portfolio will have fewer years it must make payouts to you, meaning those payouts can be larger. Fourth, if you delay taking Social Security, your payments will be permanently higher.
Finally, if you are a young person with many years before you plan to retire, I hope you will consider ramping up your savings plan, now that you know more about how retirement income really works.
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1970
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51,
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1,00
7,73
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1,40
197
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9,53
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2,23
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7,00
574
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7,19
161
,325
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1975
1,03
1,61
81,
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270
1,05
7,10
71,
062,
880
1,06
4,80
21,
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7,47
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549
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974
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140
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1980
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912,
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170,
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91,
442,
610
1,57
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708,
676
1,83
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392
8,61
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1981
735,
277
859,
816
989,
497
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8,60
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1,08
22,
476,
118
4,57
7,44
76,
855,
583
9,25
5,03
511
,743
,063
14,2
01,3
0323
4,54
82.38
%20
0340
7,61
22,
805,
433
5,65
3,32
68,
932,
055
12,5
88,2
1416
,588
,596
20,7
70,2
7124
0,12
31.88
%20
0417
8,05
72,
912,
816
6,27
9,10
010
,274
,551
14,8
58,2
2920
,014
,390
25,5
63,0
2124
4,63
63.26
%20
052,
855,
732
6,55
9,50
111
,040
,619
16,2
71,6
0722
,261
,087
28,8
25,3
1625
2,60
13.42
%20
062,
940,
477
7,29
6,70
112
,735
,528
19,2
71,3
8226
,969
,114
35,6
49,8
5726
1,22
92.54
%20
072,
820,
857
7,39
3,60
313
,041
,160
19,7
56,2
4827
,587
,956
36,3
30,2
5026
7,86
54.08
%20
082,
109,
987
5,57
4,65
99,
379,
790
13,3
62,1
3517
,398
,501
21,2
03,7
3327
8,79
80.09
%20
092,
181,
600
6,52
5,39
311
,550
,678
17,0
75,9
6222
,958
,232
28,8
11,6
0327
9,05
32.72
%20
102,
131,
031
7,14
4,66
313
,084
,511
19,7
65,8
5027
,045
,835
34,4
74,8
1728
6,64
71.50
%
6,77
1,47
6
Tabl
e 1.
Mod
erat
e Fi
xed
Dist
ribut
ion
Sche
dule
Initi
al In
vest
men
t: $1
mill
ion.
$50
K is
with
draw
n ea
ch y
ear a
djus
ted
for i
nfla
tion.
Man
agem
ent f
ees p
lus t
rans
actio
n co
sts i
nclu
ded.
Tota
l Dis
trib
utio
n
Page
8 o
f 14
w
ww
.mer
riman
.com
1.
800.
423.
4893
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
nYe
ar-e
nd
Bala
nce
Dist
ribut
ion
Cum
ulat
ive
Dist
ribut
ion
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
nYe
ar-e
nd
Bala
nce
Dist
ribut
ion
Cum
ulat
ive
Dist
ribut
ion
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
n19
701,
007,
736
50,0
0050
,000
991,
401
50,0
0050
,000
975,
066
50,0
0050
,000
909,
726
50,0
0050
,000
988,
247
50,0
0050
,000
1971
1,10
4,34
950
,387
100,
387
1,10
7,93
949
,570
99,5
701,
110,
907
48,7
5398
,753
1,11
5,66
645
,486
95,4
861,
073,
257
49,4
1299
,412
1972
1,18
5,93
355
,217
155,
604
1,21
4,92
455
,397
154,
967
1,24
3,38
255
,545
154,
299
1,34
9,95
455
,783
151,
270
1,21
3,07
153
,663
153,
075
1973
1,06
3,61
959
,297
214,
901
1,06
4,74
260
,746
215,
713
1,06
3,71
162
,169
216,
468
1,04
2,49
867
,498
218,
767
983,
405
60,6
5421
3,72
919
7494
7,51
253
,181
268,
082
917,
601
53,2
3726
8,95
088
5,83
153
,186
269,
653
747,
105
52,1
2527
0,89
268
7,05
249
,170
262,
899
1975
1,10
0,37
347
,376
315,
457
1,09
9,68
045
,880
314,
830
1,09
4,36
144
,292
313,
945
1,03
3,76
837
,355
308,
247
895,
582
34,3
5329
7,25
219
761,
195,
149
55,0
1937
0,47
61,
208,
489
54,9
8436
9,81
41,
217,
320
54,7
1836
8,66
31,
205,
374
51,6
8835
9,93
61,
053,
710
44,7
7934
2,03
119
771,
269,
649
59,7
5743
0,23
41,
312,
717
60,4
2443
0,23
91,
350,
825
60,8
6642
9,52
91,
450,
514
60,2
6942
0,20
592
9,15
852
,686
394,
716
1978
1,36
3,53
663
,482
493,
716
1,44
7,44
465
,636
495,
875
1,52
7,65
167
,541
497,
070
1,80
5,00
772
,526
492,
730
940,
728
46,4
5844
1,17
419
791,
407,
902
68,1
7756
1,89
31,
507,
486
72,3
7256
8,24
71,
604,
621
76,3
8357
3,45
31,
959,
387
90,2
5058
2,98
11,
058,
346
47,0
3648
8,21
019
801,
524,
678
70,3
9563
2,28
81,
664,
137
75,3
7464
3,62
11,
804,
971
80,2
3165
3,68
42,
367,
405
97,9
6968
0,95
01,
331,
264
52,9
1754
1,12
819
811,
535,
944
76,2
3470
8,52
21,
666,
321
83,2
0772
6,82
81,
796,
668
90,2
4974
3,93
22,
299,
017
118,
370
799,
320
1,20
2,61
966
,563
607,
691
1982
1,73
9,11
976
,797
785,
319
1,86
8,75
183
,316
810,
144
1,99
5,46
689
,833
833,
766
2,45
4,03
911
4,95
191
4,27
11,
387,
089
60,1
3166
7,82
219
831,
923,
532
86,9
5687
2,27
52,
110,
050
93,4
3890
3,58
22,
299,
161
99,7
7393
3,53
93,
055,
396
122,
702
1,03
6,97
31,
614,
406
69,3
5473
7,17
619
842,
018,
862
96,1
7796
8,45
22,
202,
620
105,
503
1,00
9,08
42,
386,
497
114,
958
1,04
8,49
73,
100,
664
152,
770
1,18
9,74
31,
629,
792
80,7
2081
7,89
719
852,
421,
834
100,
943
1,06
9,39
52,
693,
317
110,
131
1,11
9,21
52,
972,
658
119,
325
1,16
7,82
24,
147,
336
155,
033
1,34
4,77
62,
046,
402
81,4
9089
9,38
619
862,
795,
548
121,
092
1,19
0,48
63,
168,
298
134,
666
1,25
3,88
13,
562,
793
148,
633
1,31
6,45
55,
335,
681
207,
367
1,55
2,14
32,
303,
164
102,
320
1,00
1,70
619
872,
884,
671
139,
777
1,33
0,26
43,
316,
527
158,
415
1,41
2,29
63,
782,
168
178,
140
1,49
4,59
45,
977,
087
266,
784
1,81
8,92
72,
302,
455
115,
158
1,11
6,86
519
883,
121,
133
144,
234
1,47
4,49
73,
654,
767
165,
826
1,57
8,12
24,
242,
661
189,
108
1,68
3,70
37,
175,
826
298,
854
2,11
7,78
12,
555,
007
115,
123
1,23
1,98
719
893,
457,
584
156,
057
1,63
0,55
44,
087,
959
182,
738
1,76
0,86
14,
790,
827
212,
133
1,89
5,83
68,
404,
211
358,
791
2,47
6,57
33,
191,
620
127,
750
1,35
9,73
819
903,
271,
148
172,
879
1,80
3,43
33,
781,
169
204,
398
1,96
5,25
94,
329,
633
239,
541
2,13
5,37
76,
876,
054
420,
211
2,89
6,78
32,
935,
843
159,
581
1,51
9,31
919
913,
725,
631
163,
557
1,96
6,99
14,
359,
446
189,
058
2,15
4,31
75,
052,
200
216,
482
2,35
1,85
98,
401,
938
343,
803
3,24
0,58
63,
641,
091
146,
792
1,66
6,11
119
923,
736,
482
186,
282
2,15
3,27
24,
362,
606
217,
972
2,37
2,28
95,
044,
504
252,
610
2,60
4,46
98,
308,
799
420,
097
3,66
0,68
33,
724,
351
182,
055
1,84
8,16
519
934,
150,
478
186,
824
2,34
0,09
64,
930,
400
218,
130
2,59
0,42
05,
798,
413
252,
225
2,85
6,69
410
,187
,365
415,
440
4,07
6,12
33,
891,
586
186,
218
2,03
4,38
319
943,
897,
076
207,
524
2,54
7,62
04,
660,
988
246,
520
2,83
6,94
05,
518,
077
289,
921
3,14
6,61
59,
947,
392
509,
368
4,58
5,49
13,
745,
338
194,
579
2,22
8,96
219
954,
289,
786
194,
854
2,74
2,47
45,
134,
639
233,
049
3,06
9,98
96,
082,
816
275,
904
3,42
2,51
910
,986
,617
497,
370
5,08
2,86
04,
889,
840
187,
267
2,41
6,22
919
964,
358,
213
214,
489
2,95
6,96
35,
272,
312
256,
732
3,32
6,72
16,
311,
143
304,
141
3,72
6,65
911
,864
,214
549,
331
5,63
2,19
15,
717,
224
244,
492
2,66
0,72
119
974,
396,
433
217,
911
3,17
4,87
45,
314,
542
263,
616
3,59
0,33
76,
356,
412
315,
557
4,04
2,21
711
,899
,340
593,
211
6,22
5,40
27,
243,
602
285,
861
2,94
6,58
219
984,
434,
659
219,
822
3,39
4,69
55,
345,
188
265,
727
3,85
6,06
46,
373,
427
317,
821
4,36
0,03
711
,775
,749
594,
967
6,82
0,36
98,
848,
082
362,
180
3,30
8,76
219
994,
541,
440
221,
733
3,61
6,42
85,
592,
412
267,
259
4,12
3,32
36,
808,
983
318,
671
4,67
8,70
813
,613
,236
588,
787
7,40
9,15
610
,173
,623
442,
404
3,75
1,16
620
004,
567,
749
227,
072
3,84
3,50
05,
553,
677
279,
621
4,40
2,94
46,
674,
705
340,
449
5,01
9,15
812
,633
,572
680,
662
8,08
9,81
88,
785,
799
508,
681
4,25
9,84
820
014,
504,
824
228,
387
4,07
1,88
85,
432,
054
277,
684
4,68
0,62
86,
473,
519
333,
735
5,35
2,89
311
,826
,226
631,
679
8,72
1,49
77,
354,
721
439,
290
4,69
9,13
820
024,
463,
965
225,
241
4,29
7,12
95,
277,
799
271,
603
4,95
2,23
06,
163,
905
323,
676
5,67
6,56
910
,332
,977
591,
311
9,31
2,80
85,
442,
432
367,
736
5,06
6,87
420
035,
141,
262
223,
198
4,52
0,32
76,
309,
236
263,
890
5,21
6,12
07,
637,
543
308,
195
5,98
4,76
414
,602
,005
516,
649
9,82
9,45
76,
653,
710
272,
122
5,33
8,99
520
045,
465,
654
257,
063
4,77
7,39
06,
834,
910
315,
462
5,53
1,58
28,
427,
495
381,
877
6,36
6,64
117
,273
,748
730,
100
10,5
59,5
577,
008,
292
332,
685
5,67
1,68
120
055,
521,
303
273,
283
5,05
0,67
36,
987,
861
341,
746
5,87
3,32
88,
717,
958
421,
375
6,78
8,01
618
,686
,015
863,
687
11,4
23,2
456,
984,
236
350,
415
6,02
2,09
520
065,
842,
135
276,
065
5,32
6,73
87,
544,
113
349,
393
6,22
2,72
19,
598,
725
435,
898
7,22
3,91
422
,151
,758
934,
301
12,3
57,5
457,
683,
712
349,
212
6,37
1,30
720
075,
906,
656
292,
107
5,61
8,84
57,
584,
831
377,
206
6,59
9,92
69,
595,
086
479,
936
7,70
3,85
021
,604
,581
1,10
7,58
813
,465
,133
7,70
0,56
338
4,18
66,
755,
493
2008
4,94
3,58
529
5,33
35,
914,
178
5,99
8,22
237
9,24
26,
979,
168
7,14
4,29
747
9,75
48,
183,
604
12,0
69,4
431,
080,
229
14,5
45,3
624,
609,
003
385,
028
7,14
0,52
120
095,
449,
360
247,
179
6,16
1,35
76,
818,
538
299,
911
7,27
9,07
98,
367,
104
357,
215
8,54
0,81
915
,785
,436
603,
472
15,1
48,8
345,
537,
278
230,
450
7,37
0,97
120
105,
764,
669
272,
468
6,43
3,82
57,
317,
373
340,
927
7,62
0,00
69,
106,
142
418,
355
8,95
9,17
518
,121
,289
789,
272
15,9
38,1
066,
052,
649
276,
864
7,64
7,83
5
Tabl
e 2.
Mod
erat
e Fl
exib
le D
istr
ibut
ion
Sche
dule
Initi
al In
vest
men
t: $1
mill
ion.
5%
of a
ccou
nt v
alue
is w
ithdr
awn
at th
e be
ginn
ing
of e
ach
year
. Man
agem
ent f
ees p
lus t
rans
actio
n co
sts i
nclu
ded.
40%
Glo
bal E
quity
/ 60
% B
onds
50%
Glo
bal E
quity
/ 50
% B
onds
60%
Glo
bal E
quity
/ 40
% B
onds
S&P
500
Inde
x W
/Div
s10
0% G
loba
l Equ
ity
Page
9 o
f 14
w
ww
.mer
riman
.com
1.
800.
423.
4893
100%
Fi
xed
Inco
me
10%
Glob
al E
quity
20
%Gl
obal
Equ
ity
30%
Glob
al E
quity
40
%Gl
obal
Equ
ity
50%
Glob
al E
quity
60
%Gl
obal
Equ
ity
70%
Glob
al E
quity
80
%Gl
obal
Equ
ity
90%
Glob
al E
quity
10
0%Gl
obal
Equ
ity
S&P
500
Inde
x w
/Div
sDi
strib
utio
nsAc
tual
Infla
tion
1970
1,06
1,65
01,
045,
489
1,02
9,32
81,
013,
167
997,
006
980,
845
964,
684
948,
523
932,
362
916,
201
900,
040
977,
845
60,000
5.66
%19
711,
059,
919
1,06
5,24
71,
069,
835
1,07
3,68
11,
076,
699
1,07
9,06
31,
080,
686
1,08
1,56
81,
081,
709
1,08
1,10
91,
079,
768
1,04
5,37
963
,396
3.27
%19
721,
028,
415
1,05
7,78
91,
086,
615
1,11
4,84
11,
142,
313
1,16
9,17
41,
195,
276
1,22
0,56
51,
244,
987
1,26
8,49
01,
291,
021
1,16
5,86
065
,466
3.41
%19
7399
0,70
099
9,27
01,
006,
008
1,01
1,46
01,
014,
400
1,01
5,56
81,
014,
871
1,01
2,77
71,
008,
360
1,00
2,10
199
4,01
893
7,10
867
,696
8.71
%19
7497
1,72
795
2,53
893
1,07
190
7,86
888
1,97
385
4,29
182
4,90
179
4,37
276
2,07
572
8,60
269
4,07
763
5,04
673
,590
12.34%
1975
947,
527
961,
011
970,
387
976,
029
976,
462
972,
719
964,
590
952,
569
935,
794
914,
826
889,
623
757,
927
82,669
6.94
%19
7693
2,59
095
9,55
498
2,31
91,
001,
133
1,01
4,15
11,
022,
348
1,02
5,30
21,
023,
411
1,01
5,47
71,
001,
980
982,
585
829,
197
88,404
4.86
%19
7785
5,31
690
4,14
894
9,82
099
2,37
71,
029,
301
1,06
1,35
61,
087,
693
1,10
8,39
91,
121,
660
1,12
7,62
31,
125,
357
683,
618
92,704
6.70
%19
7876
3,52
083
6,87
890
9,67
498
1,75
91,
050,
099
1,11
4,90
41,
174,
814
1,23
0,13
11,
276,
700
1,31
4,72
31,
342,
328
623,
139
98,916
9.02
%19
7968
6,92
277
0,55
485
4,95
493
9,82
11,
022,
011
1,10
2,12
31,
177,
405
1,24
9,25
21,
311,
711
1,36
5,88
21,
408,
321
610,
242
107,83
613
.29%
1980
592,
349
694,
400
800,
920
911,
674
1,02
3,06
51,
136,
202
1,24
6,50
11,
356,
588
1,45
8,26
81,
551,
761
1,63
3,26
764
6,24
212
2,17
212
.52%
1981
491,
862
598,
986
709,
596
823,
278
936,
163
1,04
9,95
31,
159,
269
1,26
6,89
51,
364,
359
1,45
2,04
91,
526,
241
483,
804
137,46
48.92
%19
8242
0,73
054
8,05
767
7,18
680
7,34
393
3,95
41,
059,
003
1,17
6,80
31,
290,
092
1,38
9,22
71,
474,
990
1,54
3,53
640
5,59
914
9,72
93.83
%19
8328
0,67
442
5,80
257
9,06
273
9,75
890
2,57
51,
069,
630
1,23
4,58
01,
399,
660
1,55
2,38
71,
692,
726
1,81
4,66
630
6,45
115
5,46
33.79
%19
8413
2,22
329
4,33
446
3,56
263
9,14
281
5,01
399
3,38
81,
168,
528
1,34
1,11
61,
498,
747
1,64
0,66
51,
761,
529
154,
187
161,35
63.95
%19
8514
7,88
435
6,07
458
0,14
481
2,87
81,
057,
152
1,30
6,45
91,
561,
336
1,80
3,52
62,
032,
099
2,23
7,31
316
7,72
83.80
%19
8620
9,55
347
9,93
177
1,06
41,
087,
020
1,42
2,38
61,
775,
655
2,12
4,49
32,
465,
850
2,78
6,77
717
4,09
91.10
%19
8732
,993
321,
889
641,
543
997,
256
1,38
6,45
01,
805,
449
2,23
0,72
92,
658,
153
3,07
1,91
717
6,01
14.43
%19
8815
1,28
851
6,69
293
6,77
61,
412,
719
1,94
1,16
62,
494,
497
3,06
8,52
33,
642,
814
183,81
64.42
%19
8937
4,31
787
0,09
51,
443,
499
2,09
0,40
82,
779,
987
3,50
7,53
84,
247,
676
191,93
94.65
%19
9016
9,44
164
5,89
71,
175,
577
1,74
8,10
12,
331,
647
2,91
7,46
53,
480,
607
200,85
96.11
%19
9151
9,52
01,
173,
644
1,89
8,99
62,
655,
212
3,43
1,78
14,
195,
431
213,12
43.06
%19
9231
1,40
399
4,96
91,
752,
713
2,54
0,46
63,
345,
628
4,13
2,74
521
9,65
52.90
%19
9397
,792
921,
909
1,86
8,68
32,
884,
938
3,95
5,53
55,
034,
945
226,02
62.75
%19
9468
4,06
61,
641,
790
2,68
4,63
93,
796,
529
4,93
0,92
423
2,23
92.67
%19
9551
0,70
61,
620,
057
2,83
2,54
24,
127,
351
5,44
9,18
023
8,45
12.54
%19
9628
5,79
11,
508,
834
2,87
6,09
94,
363,
887
5,91
0,69
824
4,50
43.32
%19
9731
,667
1,32
1,97
42,
767,
626
4,33
9,03
85,
969,
023
252,62
71.70
%19
981,
112,
119
2,62
4,63
44,
260,
467
5,94
5,81
725
6,92
81.61
%19
9996
7,81
12,
757,
999
4,76
7,49
36,
912,
459
261,06
92.68
%20
0070
4,72
42,
492,
962
4,45
2,04
06,
487,
804
268,07
83.39
%20
0142
6,68
42,
214,
320
4,14
5,23
96,
116,
068
277,15
71.55
%20
0213
8,38
71,
849,
375
3,62
7,68
15,
362,
440
281,45
82.38
%20
032,
167,
109
4,80
4,87
17,
540,
422
288,14
81.88
%20
042,
243,
570
5,51
6,57
99,
021,
071
293,56
43.26
%20
052,
151,
180
5,86
6,37
99,
926,
495
303,12
13.42
%20
062,
200,
312
6,80
0,47
711
,996
,511
313,47
42.54
%20
071,
943,
473
6,68
9,67
811
,987
,090
321,43
94.08
%20
081,
097,
062
4,04
5,82
36,
852,
931
334,55
70.09
%20
0998
3,06
54,
966,
546
8,96
8,83
833
4,86
32.72
%20
1075
5,20
85,
535,
006
10,4
62,6
3634
3,97
61.50
%
8,12
5,77
1
Tabl
e 3.
Agg
ress
ive
Fixe
d Di
strib
utio
n Sc
hedu
leIn
itial
Inve
stm
ent:
$1 m
illio
n. $
60K
is w
ithdr
awn
each
yea
r adj
uste
d fo
r inf
latio
n. M
anag
emen
t fee
s plu
s tra
nsac
tion
cost
s inc
lude
d.
Tota
l Dis
trib
utio
n
Page
10
of 1
4
ww
w.m
errim
an.c
om
1.80
0.42
3.48
93
100%
Fi
xed
Inco
me
10%
Glob
al E
quity
20
%Gl
obal
Equ
ity
30%
Glob
al E
quity
40
%Gl
obal
Equ
ity
50%
Glob
al E
quity
60
%Gl
obal
Equ
ity
70%
Glob
al E
quity
80
%Gl
obal
Equ
ity
90%
Glob
al E
quity
10
0%Gl
obal
Equ
ity
S&P
500
Inde
x w
/Div
sDi
strib
utio
nsAc
tual
Infla
tion
1970
1,08
4,50
11,
067,
992
1,05
1,48
31,
034,
974
1,01
8,46
51,
001,
956
985,
447
968,
938
952,
430
935,
921
919,
412
998,
650
40,000
5.66
%19
711,
106,
895
1,11
2,86
01,
118,
067
1,12
2,51
81,
126,
211
1,12
9,14
81,
131,
237
1,13
2,66
01,
133,
325
1,13
3,23
41,
132,
386
1,09
3,32
142
,264
3.27
%19
721,
100,
458
1,13
2,17
11,
163,
350
1,19
3,93
91,
223,
884
1,25
3,13
21,
281,
522
1,30
9,20
91,
336,
036
1,36
1,94
81,
386,
891
1,24
8,86
243
,644
3.41
%19
731,
089,
182
1,09
8,03
41,
104,
963
1,10
9,95
21,
113,
490
1,11
4,56
41,
113,
579
1,11
1,15
01,
106,
340
1,09
9,58
61,
090,
903
1,02
7,19
345
,131
8.71
%19
741,
102,
554
1,07
9,88
51,
055,
328
1,02
7,87
699
8,75
796
7,18
593
3,73
889
9,13
086
2,72
782
4,63
978
5,98
071
9,33
649
,060
12.34%
1975
1,11
7,52
61,
132,
749
1,14
4,65
21,
151,
208
1,15
3,48
61,
150,
484
1,14
2,57
71,
130,
383
1,11
3,12
51,
090,
632
1,06
4,25
691
1,39
355
,113
6.94
%19
761,
150,
437
1,18
2,15
61,
210,
604
1,23
3,34
51,
251,
379
1,26
3,36
31,
269,
511
1,27
0,35
11,
264,
767
1,25
1,64
61,
233,
818
1,05
5,75
958
,936
4.86
%19
771,
109,
989
1,16
9,96
31,
228,
563
1,28
1,78
51,
330,
859
1,37
3,90
11,
410,
715
1,44
1,49
81,
464,
497
1,47
7,85
51,
484,
600
922,
597
61,803
6.70
%19
781,
055,
441
1,14
8,93
11,
245,
091
1,33
8,28
51,
430,
509
1,51
8,13
31,
601,
430
1,67
9,05
21,
748,
771
1,80
7,51
21,
858,
381
912,
969
65,944
9.02
%19
791,
031,
722
1,14
0,23
81,
253,
298
1,36
4,90
41,
477,
143
1,58
6,00
71,
691,
672
1,79
2,11
81,
885,
497
1,96
7,68
22,
041,
565
996,
038
71,891
13.29%
1980
998,
529
1,13
6,27
51,
283,
746
1,43
4,53
51,
590,
925
1,74
8,29
81,
906,
637
2,06
3,29
52,
215,
656
2,35
8,09
32,
493,
551
1,21
0,98
881
,448
12.52%
1981
983,
251
1,12
6,55
21,
278,
405
1,43
2,34
31,
589,
733
1,74
6,48
41,
902,
101
2,05
3,52
32,
199,
228
2,33
2,15
22,
456,
044
1,06
4,39
991
,642
8.92
%19
821,
091,
135
1,25
7,23
21,
430,
317
1,60
2,94
91,
775,
560
1,94
4,20
22,
107,
793
2,26
2,51
92,
407,
462
2,53
5,05
92,
648,
809
1,17
1,09
199
,819
3.83
%19
831,
051,
413
1,25
7,45
61,
479,
255
1,70
8,86
31,
946,
377
2,18
7,91
82,
431,
763
2,67
2,22
62,
908,
442
3,12
8,76
53,
337,
115
1,30
7,77
210
3,64
23.79
%19
841,
063,
383
1,28
9,75
81,
531,
054
1,77
8,56
62,
031,
416
2,28
5,92
62,
540,
656
2,78
8,01
73,
028,
104
3,24
7,60
83,
451,
461
1,27
5,41
010
7,57
13.95
%19
851,
107,
113
1,40
0,15
51,
722,
624
2,06
3,76
02,
423,
844
2,79
8,39
63,
186,
030
3,57
5,38
63,
967,
187
4,34
1,43
84,
704,
124
1,53
7,92
611
1,81
93.80
%19
861,
109,
436
1,46
8,78
41,
875,
866
2,31
9,92
92,
804,
143
3,32
2,18
73,
874,
394
4,44
6,52
15,
039,
640
5,62
7,29
06,
216,
371
1,68
4,48
511
6,06
61.10
%19
871,
013,
019
1,40
2,40
91,
853,
446
2,35
7,45
42,
918,
984
3,53
2,46
64,
199,
865
4,90
6,90
35,
655,
383
6,41
5,47
27,
195,
057
1,64
9,11
811
7,34
04.43
%19
8893
6,44
01,
374,
937
1,89
6,88
42,
497,
644
3,18
5,53
73,
956,
611
4,81
6,47
85,
751,
881
6,76
6,57
57,
826,
544
8,94
2,03
11,
783,
181
122,54
44.42
%19
8990
2,49
61,
408,
277
2,01
9,82
42,
735,
001
3,56
5,68
34,
509,
400
5,57
5,49
86,
750,
701
8,04
2,27
69,
411,
166
10,8
71,2
832,
176,
464
127,96
04.65
%19
9082
9,64
71,
350,
429
1,95
8,98
52,
647,
203
3,41
8,20
34,
261,
938
5,17
9,05
36,
149,
298
7,17
1,58
48,
203,
431
9,25
0,69
81,
977,
755
133,90
66.11
%19
9177
9,87
01,
391,
251
2,12
1,51
62,
965,
373
3,92
8,70
45,
002,
214
6,19
0,19
47,
470,
541
8,84
3,91
310
,258
,677
11,7
22,4
332,
396,
460
142,08
33.06
%19
9267
0,39
61,
318,
020
2,09
0,72
82,
981,
200
3,99
3,85
55,
117,
479
6,35
5,53
67,
684,
313
9,10
3,50
410
,558
,093
12,0
54,5
452,
422,
605
146,43
72.90
%19
9356
1,51
81,
288,
953
2,18
5,21
53,
250,
632
4,49
4,69
85,
911,
715
7,51
1,97
39,
273,
449
11,2
01,3
1713
,229
,898
15,3
69,2
322,
498,
881
150,68
42.75
%19
9438
7,76
81,
093,
197
1,97
5,61
73,
037,
971
4,29
0,55
05,
731,
646
7,37
4,39
59,
200,
152
11,2
16,1
5513
,358
,523
15,6
40,3
582,
374,
699
154,82
62.67
%19
9526
1,12
31,
074,
144
2,09
7,32
73,
332,
370
4,78
8,99
66,
465,
844
8,37
7,79
010
,503
,768
12,8
50,5
3515
,344
,402
18,0
01,7
113,
045,
069
158,96
72.54
%19
9697
,963
937,
618
2,01
9,85
33,
352,
344
4,94
8,97
86,
816,
309
8,97
7,55
611
,416
,753
14,1
46,6
4317
,093
,512
20,2
80,7
673,
547,
080
163,00
23.32
%19
9781
3,24
81,
964,
158
3,38
2,27
35,
078,
357
7,05
8,24
39,
345,
375
11,9
20,3
9814
,795
,598
17,8
93,1
8321
,237
,032
4,50
5,99
316
8,41
81.70
%19
9868
2,67
51,
909,
814
3,41
8,22
05,
212,
608
7,29
5,84
69,
689,
625
12,3
68,1
0515
,342
,104
18,5
27,8
3021
,947
,755
5,57
3,53
617
1,28
51.61
%19
9950
8,45
11,
785,
259
3,42
0,37
95,
434,
063
7,84
8,68
210
,708
,876
14,0
03,2
7117
,765
,986
21,9
17,7
4426
,500
,435
6,53
5,15
117
4,04
62.68
%20
0035
8,41
31,
738,
173
3,47
4,11
75,
566,
795
8,02
3,51
810
,872
,987
14,0
82,8
6317
,671
,823
21,5
41,7
9325
,717
,497
5,77
8,23
817
8,71
93.39
%20
0118
1,48
31,
633,
716
3,44
1,57
55,
590,
261
8,07
6,72
010
,919
,406
14,0
73,3
5517
,549
,757
21,2
40,7
9525
,163
,217
4,92
8,81
318
4,77
11.55
%20
021,
561,
303
3,45
8,80
75,
638,
423
8,07
4,88
410
,764
,532
13,6
39,4
3916
,693
,152
19,8
04,1
2222
,974
,359
3,69
3,08
418
7,63
92.38
%20
031,
527,
854
3,80
8,69
56,
606,
964
9,92
7,92
813
,801
,225
18,1
67,2
8823
,045
,166
28,2
84,0
0633
,894
,630
4,50
5,44
319
2,09
91.88
%20
041,
427,
728
3,96
4,89
57,
178,
789
11,1
06,5
5715
,810
,741
21,2
59,1
1327
,505
,522
34,3
97,2
1541
,970
,230
4,77
8,32
019
5,70
93.26
%20
051,
265,
476
3,95
1,41
67,
423,
116
11,7
42,9
6817
,002
,591
23,1
98,6
8130
,418
,893
38,5
20,8
0947
,569
,454
4,80
0,56
020
2,08
03.42
%20
061,
121,
967
4,08
1,89
78,
040,
096
13,1
15,8
1319
,469
,586
27,1
63,1
5536
,364
,342
46,9
66,6
8659
,110
,009
5,31
7,29
120
8,98
32.54
%20
0796
9,76
84,
137,
230
8,33
3,95
813
,660
,796
20,2
65,3
4628
,189
,882
37,5
83,0
8748
,305
,938
60,5
13,6
665,
383,
357
214,29
24.08
%20
0872
3,95
93,
636,
677
7,15
0,39
011
,191
,823
15,7
11,8
3520
,555
,484
25,6
30,9
3930
,633
,954
35,4
83,2
353,
251,
153
223,03
80.09
%20
0953
9,17
93,
835,
038
8,04
4,16
713
,136
,750
19,1
05,8
0725
,809
,747
33,1
63,5
0740
,783
,979
48,5
51,4
283,
829,
207
223,24
22.72
%20
1033
0,41
03,
955,
079
8,70
8,85
514
,590
,382
21,6
33,2
6129
,716
,511
38,7
74,4
5248
,380
,513
58,4
02,4
894,
142,
045
229,31
71.50
%
5,41
7,18
1
Tabl
e 4.
Con
serv
ativ
e Fi
xed
Dist
ribut
ion
Sche
dule
Initi
al In
vest
men
t: $1
mill
ion.
$40
K is
with
draw
n pe
r yea
r adj
uste
d fo
r inf
latio
n. M
anag
emen
t fee
s plu
s tra
nsac
tion
cost
s inc
lude
d.
Tota
l Dis
trib
utio
n
Page
11
of 1
4
ww
w.m
errim
an.c
om
1.80
0.42
3.48
93
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
nYe
ar-e
nd
Bala
nce
Dist
ribut
ion
Cum
ulat
ive
Dist
ribut
ion
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
nYe
ar-e
nd
Bala
nce
Dist
ribut
ion
Cum
ulat
ive
Dist
ribut
ion
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
n19
7099
7,00
660
,000
60,0
0098
0,84
560
,000
60,0
0096
4,68
460
,000
60,0
0090
0,04
060
,000
60,0
0097
7,84
560
,000
60,0
0019
711,
080,
870
59,8
2011
9,82
01,
084,
471
58,8
5111
8,85
11,
087,
376
57,8
8111
7,88
11,
092,
035
54,0
0211
4,00
21,
050,
781
58,6
7111
8,67
119
721,
147,
730
64,8
5218
4,67
31,
175,
882
65,0
6818
3,91
91,
203,
425
65,2
4318
3,12
41,
306,
573
65,5
2217
9,52
41,
175,
165
63,0
4718
1,71
819
731,
018,
403
68,8
6425
3,53
61,
019,
094
70,5
5325
4,47
21,
018,
578
72,2
0625
5,32
999
8,26
978
,394
257,
919
942,
647
70,5
1025
2,22
719
7489
7,57
261
,104
314,
641
868,
910
61,1
4631
5,61
883
9,21
461
,115
316,
444
707,
733
59,8
9631
7,81
565
1,64
556
,559
308,
786
1975
1,03
1,17
253
,854
368,
495
1,03
0,13
552
,135
367,
752
1,02
5,72
950
,353
366,
797
968,
861
42,4
6436
0,27
984
0,48
639
,099
347,
885
1976
1,10
7,45
461
,870
430,
365
1,12
0,00
861
,808
429,
560
1,12
8,82
861
,544
428,
340
1,11
7,57
358
,132
418,
411
978,
478
50,4
2939
8,31
419
771,
163,
969
66,4
4749
6,81
21,
203,
108
67,2
0049
6,76
11,
238,
732
67,7
3049
6,07
01,
329,
937
67,0
5448
5,46
585
3,73
658
,709
457,
023
1978
1,23
6,17
369
,838
566,
651
1,31
1,96
872
,186
568,
947
1,38
5,44
874
,324
570,
394
1,63
6,82
379
,796
565,
261
855,
269
51,2
2450
8,24
719
791,
262,
329
74,1
7064
0,82
11,
351,
414
78,7
1864
7,66
51,
438,
889
83,1
2765
3,52
11,
757,
207
98,2
0966
3,47
195
2,07
251
,316
559,
563
1980
1,35
1,51
975
,740
716,
561
1,47
5,07
181
,085
728,
750
1,60
0,48
086
,333
739,
854
2,09
9,79
010
5,43
276
8,90
31,
184,
980
57,1
2461
6,68
719
811,
346,
196
81,0
9179
7,65
21,
460,
521
88,5
0481
7,25
41,
575,
534
96,0
2983
5,88
32,
015,
996
125,
987
894,
890
1,05
9,20
371
,099
687,
786
1982
1,50
7,13
180
,772
878,
424
1,61
9,66
887
,631
904,
886
1,73
0,45
194
,532
930,
415
2,12
7,99
512
0,96
01,
015,
850
1,20
8,81
463
,552
751,
338
1983
1,64
8,45
290
,428
968,
852
1,80
8,61
997
,180
1,00
2,06
61,
971,
901
103,
827
1,03
4,24
22,
619,
572
127,
680
1,14
3,53
01,
392,
106
72,5
2982
3,86
719
841,
710,
751
98,9
071,
067,
759
1,86
6,78
710
8,51
71,
110,
583
2,02
3,71
111
8,31
41,
152,
556
2,62
8,67
415
7,17
41,
300,
704
1,39
0,58
083
,526
907,
394
1985
2,02
9,34
610
2,64
51,
170,
404
2,25
6,51
011
2,00
71,
222,
590
2,49
2,16
512
1,42
31,
273,
979
3,47
6,30
515
7,72
01,
458,
425
1,72
7,66
283
,435
990,
828
1986
2,31
5,44
212
1,76
11,
292,
164
2,62
4,21
613
5,39
11,
357,
981
2,95
2,83
414
9,53
01,
423,
509
4,42
2,50
220
8,57
81,
667,
003
1,92
3,96
410
3,66
01,
094,
488
1987
2,36
2,19
213
8,92
71,
431,
091
2,71
5,96
115
7,45
31,
515,
434
3,09
9,36
217
7,17
01,
600,
679
4,89
9,57
126
5,35
01,
932,
353
1,90
3,12
611
5,43
81,
209,
926
1988
2,52
6,49
314
1,73
21,
572,
823
2,95
8,97
216
2,95
81,
678,
391
3,43
7,43
118
5,96
21,
786,
640
5,81
7,42
029
3,97
42,
226,
327
2,08
9,64
611
4,18
81,
324,
113
1989
2,76
6,74
115
1,59
01,
724,
412
3,27
2,13
917
7,53
81,
855,
929
3,83
8,02
120
6,24
61,
992,
886
6,73
8,81
034
9,04
52,
575,
373
2,58
2,83
212
5,37
91,
449,
492
1990
2,58
7,57
816
6,00
41,
890,
417
2,99
2,39
919
6,32
82,
052,
258
3,42
9,87
523
0,28
12,
223,
168
5,45
3,32
340
4,32
92,
979,
701
2,35
0,83
415
4,97
01,
604,
462
1991
2,91
2,95
315
5,25
52,
045,
671
3,41
0,60
917
9,54
42,
231,
802
3,95
7,14
220
5,79
32,
428,
960
6,59
0,16
532
7,19
93,
306,
900
2,88
4,86
114
1,05
01,
745,
512
1992
2,88
8,04
517
4,77
72,
220,
448
3,37
4,58
620
4,63
72,
436,
438
3,90
6,79
723
7,42
92,
666,
389
6,44
5,66
839
5,41
03,
702,
310
2,91
9,76
817
3,09
21,
918,
604
1993
3,17
0,91
817
3,28
32,
393,
731
3,77
0,39
020
2,47
52,
638,
913
4,44
0,30
423
4,40
82,
900,
796
7,81
6,27
038
6,74
04,
089,
050
3,01
8,76
017
5,18
62,
093,
790
1994
2,94
3,16
119
0,25
52,
583,
986
3,52
3,99
022
6,22
32,
865,
137
4,17
8,46
426
6,41
83,
167,
215
7,54
9,07
146
8,97
64,
558,
027
2,87
4,73
118
1,12
62,
274,
916
1995
3,20
2,45
517
6,59
02,
760,
576
3,83
8,02
421
1,43
93,
076,
576
4,55
4,15
425
0,70
83,
417,
922
8,24
6,59
045
2,94
45,
010,
971
3,71
3,68
517
2,48
42,
447,
399
1996
3,21
6,36
819
2,14
72,
952,
723
3,89
6,25
623
0,28
13,
306,
858
4,67
2,16
727
3,24
93,
691,
172
8,80
9,00
849
4,79
55,
505,
766
4,29
6,35
322
2,82
12,
670,
221
1997
3,20
7,30
519
2,98
23,
145,
705
3,88
2,77
523
3,77
53,
540,
633
4,65
2,80
428
0,33
03,
971,
502
8,74
0,36
752
8,54
06,
034,
307
5,38
6,08
925
7,78
12,
928,
002
1998
3,19
8,03
119
2,43
83,
338,
144
3,86
0,57
123
2,96
63,
773,
600
4,61
2,83
827
9,16
84,
250,
670
8,55
6,72
652
4,42
26,
558,
729
6,50
9,87
032
3,16
53,
251,
167
1999
3,23
6,85
019
1,88
23,
530,
026
3,99
3,00
623
1,63
44,
005,
234
4,87
2,70
127
6,77
04,
527,
440
9,78
5,41
851
3,40
47,
072,
132
7,40
6,33
139
0,59
23,
641,
759
2000
3,21
7,83
119
4,21
13,
724,
237
3,92
0,06
623
9,58
04,
244,
814
4,72
2,80
129
2,36
24,
819,
802
8,98
4,94
058
7,12
57,
659,
257
6,32
8,67
844
4,38
04,
086,
139
2001
3,13
6,68
319
3,07
03,
917,
306
3,79
0,43
423
5,20
44,
480,
018
4,52
8,85
028
3,36
85,
103,
170
8,32
0,70
953
9,09
68,
198,
354
5,24
2,06
237
9,72
14,
465,
860
2002
3,07
1,81
818
8,20
14,
105,
507
3,64
0,30
322
7,42
64,
707,
444
4,26
3,43
627
1,73
15,
374,
901
7,19
1,58
349
9,24
38,
697,
596
3,83
8,25
031
4,52
44,
780,
384
2003
3,49
6,21
018
4,30
94,
289,
816
4,30
1,49
021
8,41
84,
925,
862
5,22
2,43
025
5,80
65,
630,
708
10,0
50,6
8043
1,49
59,
129,
091
4,64
3,10
323
0,29
55,
010,
679
2004
3,67
3,37
120
9,77
34,
499,
589
4,60
6,72
325
8,08
95,
183,
952
5,69
7,72
131
3,34
65,
944,
053
11,7
64,0
2460
3,04
19,
732,
132
4,83
9,05
927
8,58
65,
289,
265
2005
3,66
7,64
122
0,40
24,
719,
991
4,65
6,27
527
6,40
35,
460,
355
5,82
7,84
134
1,86
36,
285,
917
12,5
91,3
5170
5,84
110
,437
,974
4,77
1,68
629
0,34
45,
579,
608
2006
3,83
5,50
722
0,05
84,
940,
050
4,96
9,66
727
9,37
75,
739,
732
6,34
4,64
434
9,67
06,
635,
587
14,7
68,9
7075
5,48
111
,193
,455
5,19
4,31
528
6,30
15,
865,
909
2007
3,83
2,88
123
0,13
05,
170,
180
4,93
9,68
129
8,18
06,
037,
912
6,27
1,38
838
0,67
97,
016,
266
14,2
51,9
4788
6,13
812
,079
,593
5,15
0,90
931
1,65
96,
177,
568
2008
3,17
0,61
722
9,97
35,
400,
153
3,86
1,97
429
6,38
16,
334,
292
4,61
7,24
337
6,28
37,
392,
549
7,87
7,74
585
5,11
712
,934
,710
3,05
0,51
130
9,05
56,
486,
623
2009
3,45
3,34
519
0,23
75,
590,
390
4,33
9,06
523
1,71
86,
566,
011
5,34
5,68
127
7,03
57,
669,
584
10,1
91,0
2547
2,66
513
,407
,374
3,62
6,32
118
3,03
16,
669,
653
2010
3,61
0,02
620
7,20
15,
797,
591
4,60
2,77
826
0,34
46,
826,
355
5,75
1,87
632
0,74
17,
990,
324
11,5
75,4
1961
1,46
214
,018
,836
3,92
2,10
921
7,57
96,
887,
233
Tabl
e 5.
Agg
ress
ive
Flex
ible
Dis
trib
utio
n Sc
hedu
leIn
itial
Inve
stm
ent:
$1 m
illio
n. 6
% o
f acc
ount
val
ue is
with
draw
n at
the
begi
nnin
g of
eac
h ye
ar. M
anag
emen
t fee
s plu
s tra
nsac
tion
cost
s inc
lude
d.
40%
Glo
bal E
quity
/ 60
% B
onds
50%
Glo
bal E
quity
/ 50
% B
onds
60%
Glo
bal E
quity
/ 40
% B
onds
100%
Glo
bal E
quity
S&P
500
Inde
x W
/Div
s
Page
12
of 1
4
ww
w.m
errim
an.c
om
1.80
0.42
3.48
93
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
nYe
ar-e
nd
Bala
nce
Dist
ribut
ion
Cum
ulat
ive
Dist
ribut
ion
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
nYe
ar-e
nd
Bala
nce
Dist
ribut
ion
Cum
ulat
ive
Dist
ribut
ion
Year
-end
Ba
lanc
eDi
strib
utio
nCu
mul
ativ
e Di
strib
utio
n19
701,
018,
465
40,0
0040
,000
1,00
1,95
640
,000
40,0
0098
5,44
740
,000
40,0
0091
9,41
240
,000
40,0
0099
8,65
040
,000
40,0
0019
711,
127,
991
40,7
3980
,739
1,13
1,74
840
,078
80,0
781,
134,
690
39,4
1879
,418
1,13
9,55
136
,776
76,7
761,
095,
970
39,9
4679
,946
1972
1,22
4,21
145
,120
125,
858
1,25
4,23
945
,270
125,
348
1,28
3,51
545
,388
124,
805
1,39
3,52
845
,582
122,
359
1,25
1,78
343
,839
123,
785
1973
1,11
0,13
648
,968
174,
827
1,11
0,88
950
,170
175,
518
1,10
9,72
451
,341
176,
146
1,08
7,58
955
,741
178,
100
1,02
5,46
950
,071
173,
856
1974
1,00
0,02
444
,405
219,
232
968,
090
44,4
3621
9,95
393
4,49
844
,389
220,
535
787,
718
43,5
0422
1,60
372
3,98
241
,019
214,
875
1975
1,17
3,81
640
,001
259,
233
1,17
2,54
138
,724
258,
677
1,16
6,89
437
,380
257,
915
1,10
1,57
231
,509
253,
112
953,
654
28,9
5924
3,83
419
761,
288,
484
46,9
5330
6,18
61,
302,
987
46,9
0230
5,57
91,
312,
536
46,6
7630
4,59
11,
298,
815
44,0
6329
7,17
51,
133,
847
38,1
4628
1,98
019
771,
383,
995
51,5
3935
7,72
51,
430,
968
52,1
1935
7,69
81,
472,
540
52,5
0135
7,09
21,
579,
584
51,9
5334
9,12
71,
010,
347
45,3
5432
7,33
419
781,
502,
723
55,3
6041
3,08
51,
595,
131
57,2
3941
4,93
71,
683,
556
58,9
0241
5,99
41,
987,
077
63,1
8341
2,31
11,
033,
696
40,4
1436
7,74
819
791,
569,
075
60,1
0947
3,19
41,
679,
434
63,8
0547
8,74
21,
787,
617
67,3
4248
3,33
62,
180,
314
79,4
8349
1,79
41,
175,
178
41,3
4840
9,09
619
801,
717,
769
62,7
6353
5,95
71,
874,
118
67,1
7754
5,91
92,
032,
622
71,5
0555
4,84
12,
663,
434
87,2
1357
9,00
61,
493,
785
47,0
0745
6,10
319
811,
749,
669
68,7
1160
4,66
81,
897,
300
74,9
6562
0,88
42,
045,
434
81,3
0563
6,14
62,
615,
400
106,
537
685,
544
1,36
3,64
059
,751
515,
855
1982
2,00
3,10
469
,987
674,
654
2,15
1,28
575
,892
696,
776
2,29
7,09
481
,817
717,
963
2,82
3,58
810
4,61
679
0,16
01,
589,
364
54,5
4657
0,40
019
832,
240,
219
80,1
2475
4,77
82,
456,
329
86,0
5178
2,82
72,
676,
579
91,8
8480
9,84
73,
555,
153
112,
944
903,
103
1,86
9,30
363
,575
633,
975
1984
2,37
7,79
189
,609
844,
387
2,59
3,03
098
,253
881,
081
2,80
9,92
910
7,06
391
6,91
03,
647,
995
142,
206
1,04
5,30
91,
906,
982
74,7
7270
8,74
719
852,
884,
794
95,1
1293
9,49
93,
206,
303
103,
721
984,
802
3,54
0,29
611
2,39
71,
029,
307
4,93
3,59
114
5,92
01,
191,
229
2,41
9,65
276
,279
785,
026
1986
3,36
7,50
611
5,39
21,
054,
891
3,81
4,81
612
8,25
21,
113,
054
4,29
0,92
014
1,61
21,
170,
919
6,41
7,26
119
7,34
41,
388,
573
2,75
1,91
196
,786
881,
812
1987
3,51
4,34
413
4,70
01,
189,
591
4,03
8,28
015
2,59
31,
265,
647
4,60
5,81
717
1,63
71,
342,
556
7,26
7,35
925
6,69
01,
645,
263
2,78
0,02
311
0,07
699
1,88
919
883,
845,
794
140,
574
1,33
0,16
54,
499,
932
161,
531
1,42
7,17
85,
224,
382
184,
233
1,52
6,78
88,
820,
153
290,
694
1,93
5,95
83,
117,
432
111,
201
1,10
3,09
019
894,
308,
358
153,
832
1,48
3,99
65,
089,
469
179,
997
1,60
7,17
55,
964,
880
208,
975
1,73
5,76
410
,442
,402
352,
806
2,28
8,76
43,
935,
172
124,
697
1,22
7,78
719
904,
122,
053
172,
334
1,65
6,33
14,
760,
008
203,
579
1,81
0,75
45,
450,
337
238,
595
1,97
4,35
98,
635,
775
417,
696
2,70
6,46
03,
657,
909
157,
407
1,38
5,19
419
914,
748,
130
164,
882
1,82
1,21
35,
549,
657
190,
400
2,00
1,15
46,
430,
650
218,
013
2,19
2,37
210
,667
,396
345,
431
3,05
1,89
14,
584,
366
146,
316
1,53
1,51
019
924,
815,
473
189,
925
2,01
1,13
85,
615,
639
221,
986
2,22
3,14
06,
491,
954
257,
226
2,44
9,59
810
,662
,908
426,
696
3,47
8,58
74,
738,
557
183,
375
1,71
4,88
519
935,
409,
397
192,
619
2,20
3,75
76,
417,
553
224,
626
2,44
7,76
67,
544,
818
259,
678
2,70
9,27
613
,214
,930
426,
516
3,90
5,10
35,
003,
452
189,
542
1,90
4,42
719
945,
136,
264
216,
376
2,42
0,13
36,
134,
343
256,
702
2,70
4,46
87,
259,
400
301,
793
3,01
1,06
913
,039
,995
528,
597
4,43
3,70
04,
866,
107
200,
138
2,10
4,56
519
955,
717,
991
205,
451
2,62
5,58
36,
833,
302
245,
374
2,94
9,84
28,
090,
873
290,
376
3,30
1,44
514
,554
,666
521,
600
4,95
5,30
06,
419,
970
194,
644
2,29
9,20
919
965,
874,
796
228,
720
2,85
4,30
37,
094,
632
273,
332
3,22
3,17
48,
487,
298
323,
635
3,62
5,08
015
,883
,362
582,
187
5,53
7,48
77,
585,
272
256,
799
2,55
6,00
819
975,
993,
062
234,
992
3,08
9,29
57,
231,
103
283,
785
3,50
6,95
98,
642,
397
339,
492
3,96
4,57
216
,098
,725
635,
334
6,17
2,82
19,
711,
541
303,
411
2,85
9,41
919
986,
113,
455
239,
722
3,32
9,01
77,
353,
821
289,
244
3,79
6,20
38,
761,
317
345,
696
4,31
0,26
816
,099
,868
643,
949
6,81
6,77
011
,987
,547
388,
462
3,24
7,88
119
996,
331,
393
244,
538
3,57
3,55
67,
779,
825
294,
153
4,09
0,35
69,
463,
662
350,
453
4,66
0,72
118
,808
,766
643,
995
7,46
0,76
513
,928
,504
479,
502
3,72
7,38
320
006,
440,
027
253,
256
3,82
6,81
17,
812,
188
311,
193
4,40
1,54
99,
379,
377
378,
546
5,03
9,26
717
,639
,662
752,
351
8,21
3,11
612
,155
,078
557,
140
4,28
4,52
320
016,
423,
253
257,
601
4,08
4,41
27,
726,
552
312,
488
4,71
4,03
79,
197,
368
375,
175
5,41
4,44
216
,686
,891
705,
586
8,91
8,70
210
,282
,300
486,
203
4,77
0,72
620
026,
437,
091
256,
930
4,34
1,34
27,
591,
236
309,
062
5,02
3,09
98,
854,
664
367,
895
5,78
2,33
714
,733
,974
667,
476
9,58
6,17
87,
688,
910
411,
292
5,18
2,01
820
037,
498,
167
257,
484
4,59
8,82
69,
176,
827
303,
649
5,32
6,74
811
,093
,849
354,
187
6,13
6,52
321
,041
,276
589,
359
10,1
75,5
379,
499,
116
307,
556
5,48
9,57
420
048,
061,
083
299,
927
4,89
8,75
310
,052
,029
367,
073
5,69
3,82
112
,375
,053
443,
754
6,58
0,27
725
,154
,247
841,
651
11,0
17,1
8810
,110
,652
379,
965
5,86
9,53
920
058,
234,
827
322,
443
5,22
1,19
610
,391
,088
402,
081
6,09
5,90
212
,939
,630
495,
002
7,07
5,27
927
,498
,347
1,00
6,17
012
,023
,357
10,1
82,0
1040
4,42
66,
273,
965
2006
8,81
1,38
932
9,39
35,
550,
589
11,3
42,5
4241
5,64
46,
511,
546
14,3
99,8
8651
7,58
57,
592,
865
32,9
43,0
091,
099,
934
13,1
23,2
9111
,319
,658
407,
280
6,68
1,24
520
079,
008,
833
352,
456
5,90
3,04
511
,528
,603
453,
702
6,96
5,24
814
,547
,398
575,
995
8,16
8,86
032
,468
,788
1,31
7,72
014
,441
,012
11,4
63,8
9845
2,78
67,
134,
032
2008
7,62
4,66
736
0,35
36,
263,
398
9,21
6,83
646
1,14
47,
426,
392
10,9
46,7
9358
1,89
68,
750,
756
18,3
30,4
291,
298,
752
15,7
39,7
636,
933,
690
458,
556
7,59
2,58
820
098,
500,
545
304,
987
6,56
8,38
510
,595
,326
368,
673
7,79
5,06
512
,961
,880
437,
872
9,18
8,62
824
,227
,419
733,
217
16,4
72,9
808,
417,
854
277,
348
7,86
9,93
520
109,
094,
377
340,
022
6,90
8,40
711
,496
,725
423,
813
8,21
8,87
814
,259
,122
518,
475
9,70
7,10
328
,106
,373
969,
097
17,4
42,0
779,
298,
186
336,
714
8,20
6,64
9
Tabl
e 6.
Con
serv
ativ
e Fl
exib
le D
istr
ibut
ion
Sche
dule
Initi
al In
vest
men
t: $1
mill
ion.
4%
of a
ccou
nt v
alue
is w
ithdr
awn
at th
e be
ginn
ing
of e
ach
year
. Man
agem
ent f
ees p
lus t
rans
actio
n co
sts i
nclu
ded.
40%
Glo
bal E
quity
/ 60
% B
onds
50%
Glo
bal E
quity
/ 50
% B
onds
60%
Glo
bal E
quity
/ 40
% B
onds
100%
Glo
bal E
quity
S&P
500
Inde
x W
/Div
s
Merriman is an investment ad-visory firm registered with the Securities and Exchange Com-mission. Based in Seattle, we manage more than $1.5 billion in investments for clients all across the country.
Since Merriman was founded in 1983, we have maintained a commitment to empowering people, whether they become our clients or not.
We give advice on everything from investment basics to col-lege funding and retirement distributions, taking the time to educate our clients along the way so they can feel comfort-able with their money manage-ment strategy.
Our services are specifically structured to help reduce the level of emotional decision making that can derail the best of plans. Your advisor will work with you to create a detailed investment plan and then will work on your behalf, making sure it gets implemented and keeping your portfolio appro-priately structured over time.
We give you the time and free-dom to focus on the more en-joyable aspects of life.
For additional information about our programs, services and investment philosophy, or to request a one-on-one con-sultation with one of our finan-cial advisors, please visit us on the web.
Page 13 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
www.merriman.com
Recommended additional reading from FundAdvice.com
“Fine tuning your asset allocation”Perhaps the biggest job that any investor has is managing risk. If you take too much, you could be flirting with disaster; if you take too little, you could cheat yourself out of the returns you need to take care of yourself, your family and your heirs. In this article, Paul Merriman shows how to get this important equation right.
“The best mutual funds: DFA or Vanguard?”We have been teaching investors how to use Vanguard and Dimensional Fund Advisors funds for more than a decade. Here, Paul Merriman gives an update on how they compare.
“Dollar depreciation, inflation and portfolio performance”Director of Research, Larry Katz, discusses how a portfolio can be structured to offset the potential negative impacts of dollar depreciation or rising inflation and reviews how three different portfolios performed when the dollar depreciated or inflation increased.
“Inflation, politics, history and investments”Merriman Advisor, Mark Metcalf, uses some examples from the cyclic history of investing to explain how fear can be useful but should not drive our investment actions.
DisclosureThis document contains hypothetical results. Although we have done our best to present this information fairly, hypothetical performance is still potentially misleading. Hypothetical data does not represent actual performance and should not be interpreted as an indication of actual performance. This data is based on transactions that were not made. Instead, the trades were simulated, based on knowledge that was avail-able only after the fact and thus with the benefit of hindsight. Results do not include the impact of taxes, if any. Past returns are not indicative of future results.
Page 14 of 14 Merriman - Invest Wisely. Live Fully. 1.800.423.4893
Data sources: The following data sources were used to develop the tables and figures in this article. Note that many of our return series rely on academic simulations gathered and developed by Dimensional Fund Advisors (DFA). All performance data are total returns including interest and dividends. Simulated data subtracts the current ex-pense ratio for the comparable fund, except for the S&P 500 Index.
Equities: Emerging Markets DFEMX to May 1994, DFA simulation back to Jan 1987.Emerging Market Core DFCEX from May 2005.Emerging Market Small Cap DEMSX back to 1999, DFA simulation back to Jan. 1987.Emerging Market Value DFEVX back to 1999, DFA simulation back to Jan. 1987.International Large Cap DFALX back to 1992, MSCI EAFE back to 1970.International Large Cap Value DFIVX back to Mar 1994, DFA simulation back to 1975.International Small Cap DFISX back to Oct. 1996, DFA simulation back to 1970.International Small Value DISVX back to 1995.Large Cap DFUSX back to May 2010, DFLCX from Jan. 1991 - Apr. 2010, S&P 500 1970-1990.Large Value DFLVX back to 1994, DFA simulation back to 1970.Micro Cap (or Small Cap) DFSCX back to 1983, Dimensional US Micro Cap Index to 1970.Real Estate Investment Trusts DFREX back to Jan. 1993, Don Keim REIT Index 1975-1992, NAREIT 1972-1974. S&P 500 S&P 500 Index, provided by Standard & Poor’s Index Services Group, through DFA. Small Value DFSVX back to 1994, DFA simulation back to 1970.
Bonds: Barclays U.S. TIPs Back to March 1997 to June 2000, Morningstar. DFA TIPs DIPSX starting January 2007.DFA Intermediate Government Bonds DFIGX, Morningstar.Vanguard Short-Term Treasuries VFISX, Morningstar. Vanguard Intermediate-Term Treasuries VFITX, Morningstar. Vanguard Inflation Protected Securities VIPSX, Morningstar from July 2000 to December 2006.
Details: • Initial investment is $1,000,000• Distribution is at the beginning of the year.• Fees are calculated based on the Merriman tiered fee schedule and the Schwab custodial asset based pricing fees, imposed
yearly.• U.S. Equity Allocation: 20% each in LC, LCV, SC, SCV, and REITs• International Equity Allocation iss:
1970-1974: 50% Int. LC, 50% Int. SC 1975-1986: 25% Int. LC, 25% Int. LCV, 50% Int. SC 1987-1994: 20% Int. LC, 20% Int. LCV, 10% EM, 5% EMS, 5% EMV, 40% Int. SC 1995-2005: 20% Int. LC, 20% Int. LCV, 10% EM, 5% EMS, 5% EMV, 20% Int. SC, 20% Int. SCV 2006 - 2010: 20% each in Int. LC, Int. LCV, Int. SC, Int. SCV, and EM Core
•BondAllocationis:1970 - February 1997: 30% Short-Term Treasury, 70% Intermediate-Term Government March 1997 – 2010: 30% Short-Term Treasury, 50% Intermediate-Term Government, 20% TIPs.
• Distribution Schedules:Conservative Fixed Distribution Schedule: $40,000 will be distributed each year and increased every year by the previous
year’s inflation rate.Moderate Fixed Distribution Schedule: $50,000 will be distributed each year and increased every year by the previous year’s
inflation rate.Aggressive Fixed Distribution Schedule: $60,000 will be distributed each year and increased every year by the previous
year’s inflation rate.Conservative Flexible Distribution Schedule: 4% of previous year-end balance will be distributed for current year.Moderate Flexible Distribution Schedule: 5% of previous year-end balance will be distributed for current year.Aggressive Flexible Distribution Schedule: 6% of previous year-end balance will be distributed for current year.
