Perpetual Distribution Rates for Foundations, Endowments and Charitable Trusts: A Non-Gaussian Analysis

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A new white paper by Inc. Inc. is pleased to announce completion of a new white paper. In this paper, an extensive analysis of various perpetual distribution scenarios is presented. The findings are generally applicable to foundations, endowments, charitable trusts and any type of distribution planning where perpetuity is the prime objective.

The analysis is not based on any deterministic forecast methodology, such as assumed future growth rates, future inflation rates, or any type of Monte Carlo simulators. Instead, aftcasting methodology is used. Aftcasting reflects the actual sequence of events, the actual sequence of returns (stocks, interest rates and inflation), the actual correlation between stocks, interest rates and inflation, and actual volatility as they occurred since 1900.

Multiple scenarios with respect to CPI are studied. In addition, any combination of distributions based on a constant dollar amount, a percentage of annual portfolio growth, and a percentage of portfolio asset value are analyzed. The white paper is available at

Its author, Jim C. Otar, is a certified financial planner, a chartered market technician and a professional engineer. He is the author of “Unveiling the Retirement Myth – Advanced Retirement Planning based on Market History” (2009), “High Expectations & False Dreams – One Hundred Years of Stock Market History Applied to Retirement Planning” (2001) and over one hundred articles on retirement and financial planning. He received CFP-Board Article Awards in recognition of his meritorious financial planning articles both in 2001 and in 2002.

Contact: Jim C. Otar, CFP, CMT, BASc, MEng
(905) 889-7170

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Jim C. Otar
(905) 889-7170
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