An error in Table 13.1
On page 178 of the first printing of "Live It Up without Outliving Your Money," the hypothetical scenario illustrated in Table 13.1 contains a math error in the way returns were calculated. The returns indicated in the table would not cause the portfolio to run out of money.
The point of this table is that a series of returns that would be beneficial to a portfolio not subject to withdrawals could spell doom to a retirement portfolio saddled with ever-increasing withdrawals.
A better example would assume a first-year portfolio loss of 45 percent followed by endless annual gains of 14 percent. In a portfolio not subject to withdrawals, that would nearly quadruple an investor's money in 16 years.
But that same series of returns would clearly spell doom for a portfolio that had to meet the series of increasing withdrawals listed in the table. Here is the revised table:
| Withdrawal | Year | Return | Ending Value |
| $60,000 | 1 | -45 | $517,000 |
| $62,100 | 2 | 14 | $518,586 |
| $64,274 | 3 | 14 | $517,916 |
| $66,523 | 4 | 14 | $514,588 |
| $68,851 | 5 | 14 | $508,140 |
| $71,261 | 6 | 14 | $498,042 |
| $73,755 | 7 | 14 | $483,687 |
| $76,337 | 8 | 14 | $464,379 |
| $79,009 | 9 | 14 | $439,322 |
| $81,774 | 10 | 14 | $407,605 |
| $84,636 | 11 | 14 | $368,185 |
| $87,598 | 12 | 14 | $319,869 |
| $90,664 | 13 | 14 | $261,293 |
| $93,837 | 14 | 14 | $190,900 |
| $97,122 | 15 | 14 | $106,907 |
| $100,521 | 16 | 14 | $7,280 |
| $104,039 | 17 | 14 | broke! |
