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I know how to fill that hole - increase the ~5% target payout rate to ~8%. Also, I'm not really suggesting they use any of their existing endowment to cover tu

• NovemberWhiskey 3y ago
  >I know how to fill that hole - increase the ~5% target payout rate to ~8% That's a fantastically glib answer; do you have any reason to believe that's a sustainable rate? The endowment is supposed to last forever, remember. The usual citation for a safe withdrawal rate in retirement is 4%, for example. >Just put a lot of it in the bank and interest alone fills the "hole". The Harvard endowment is actively invested and generally substantially outperforms the interest that you'd get "in the bank" - that's the only reason that withdrawal rate of 5% is feasible.