Every dollar the outside world requires each year while Phase 1 lasts, and the endowment or drawdown reserve needed to pay it. Figures are in thousands of dollars unless marked. Edit the working column and the capital items to test your own assumptions. The figures follow the Founding Guidelines and are illustrative.
| Item | Low | Working | High |
|---|
Low assumes a mutual medical fund or sharing arrangement, a pass-through legal form and lean upkeep. High assumes unsubsidized marketplace insurance for all fifty and investment income retained and taxed inside the trust.
| Capital item | Thousands |
|---|
A permanent endowment pays out a set percentage each year and is meant to last indefinitely; 3 to 4 percent after inflation is the range commonly used. A drawdown reserve is sized to pay the floor for a set number of years and is spent down. It costs less, but it bets that Phase 1 ends before the money does. Pensions and Social Security already earned by older members reduce what either must pay each year.
| Scenario | Yearly floor | Endowment at 4% | Drawdown, 30 yrs at 3% | Capital with endowment | Capital with drawdown |
|---|