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I want to look at a scenario to see how the Getty Trust with $1.2 billion in 1982 would have performed had it stayed with just an index fund such as S&P 500. Bonus, if there is a way to take out 5% each year from the trust fund.

I tried using Yahoo! daily export to CSV. I get that $1.2 billion would be a specific number of shares per day. I also understand the value today would be about $20 billion. I just don't know how to take out 5% each year as an operating budget.

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I've downloaded an S&P 500 fund data you point to over the time period from February 1982 until the present, and made an attempt to set up a spreadsheet that removes the fraction in cell K1 from the value of number of shares in the fund at or close to the March 1st anniversary dates.

Below is a plot that shows three scenarios:

  • Not removing anything from the fund (blue).
  • Removing 5% from the fund every anniversary date (red).
  • Removing 10% from the fund every anniversary date (green).

Note that this takes zero account of dividends paid by the fund, which should also probably be taken into account.

enter image description here

  • I guess since the current value of the Trust is $6.7 billion, it is beating the index by a large margin. Thanks for the analysis. I am still not sure how you removed the 5% and 10% by calculation, but I appreciate the analysis. – Sun Feb 17 '15 at 19:51
  • If you check in the cells showing the number of "shares" in the S&P 500, it just carries on except for every anniversary date. On that date, I just multiply the previous number of shares by 1-K1 and so the number is reduced (provided K1 is positive!). – Peter K. Feb 17 '15 at 20:18
  • Also, don't forget those dividends. That probably won't make up the entire difference between what is calculated and $6.7 billion, but it will probably make up a bit. – Peter K. Feb 17 '15 at 20:20
  • That's not in the Yahoo! CSV I though. Or perhaps I missed that as a feature. – Sun Feb 17 '15 at 20:24
  • No, I added a few columns and converted to a Microsoft Excel file... and uploaded it to Google Drive. The data is columns A through G is straight out of Yahoo. – Peter K. Feb 17 '15 at 20:25

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