This alternative plan started with a cloned copy of the Maximized plan, but it was modified to address the constraint by setting smooth withdrawals back to their default age 65. It should be compared to the Maximized plan mentioned above. There are often multiple ways to fix or address cash constraint. One obvious way is to change the Social Security eligibility date from age 70 back to some earlier age. But we want to take advantage of delayed retirement credits, so we start first by changing the age of first smooth withdrawal for both spouses back from the optimized setting to some earlier age thereby bringing some needed liquidity out of the far term into the near term in an effort to flatten out the discretionary spending line.
The maximization report set this smooth withdrawal start age to 91. You can see below that we have set it back to its default age of 65. We did the same for Jill, Jack's spouse.
The image below shows that this change described above was adequate to smooth the discretionary spending line. It came at a small cost, $18,008 of lifetime present value, but the cash flow improvement may be well worth it to many who would prefer the smooth red line over the cash constrained dotted line.
