The actual returns of the S&P since 1928 are in the attached file.

The Assignment

Your team works at a financial advisory firm and is asked to work with a client, Ms Christie, who has retired and has 400K in liquid assets.

To maintain a semblance of her prior lifestyle she needs to draw down 50K per year to complement social security and other pension payments.

a) Based on actual data (use the random function to select different starting years), determine the average number of years she can continue to draw down 50K before she runs out of money.

b) Second, since your client understands distribution (she took this course) and comes from a family of septagenarians, she wants to know how much she can draw down if she expects to live to 78. She is 65 now.

c) finally, any other advice you would like to offer

Year	S&P 500 (includes dividends)	3-month T.Bill	Return on 10-year T. Bond
1928	43.81%	3.08%	0.84%
1929	-8.30%	3.16%	4.20%
1930	-25.12%	4.55%	4.54%
1931	-43.84%	2.31%	-2.56%
1932	-8.64%	1.07%	8.79%
1933	49.98%	0.96%	1.86%
1934	-1.19%	0.32%	7.96%
1935	46.74%	0.18%	4.47%
1936	31.94%	0.17%	5.02%
1937	-35.34%	0.30%	1.38%
1938	29.28%	0.08%	4.21%
1939	-1.10%	0.04%	4.41%
1940	-10.67%	0.03%	5.40%
1941	-12.77%	0.08%	-2.02%
1942	19.17%	0.34%	2.29%
1943	25.06%	0.38%	2.49%
1944	19.03%	0.38%	2.58%
1945	35.82%	0.38%	3.80%
1946	-8.43%	0.38%	3.13%
1947	5.20%	0.57%	0.92%
1948	5.70%	1.02%	1.95%
1949	18.30%	1.10%	4.66%
1950	30.81%	1.17%	0.43%
1951	23.68%	1.48%	-0.30%
1952	18.15%	1.67%	2.27%
1953	-1.21%	1.89%	4.14%
1954	52.56%	0.96%	3.29%
1955	32.60%	1.66%	-1.34%
1956	7.44%	2.56%	-2.26%
1957	-10.46%	3.23%	6.80%
1958	43.72%	1.78%	-2.10%
1959	12.06%	3.26%	-2.65%
1960	0.34%	3.05%	11.64%