[Verse 1]
When managing endowments there's a crucial art
To spend wisely while keeping funds from falling apart
Simple rules say spend five percent each year
Fixed percentage keeps the math crystal clear
But markets rise and fall like ocean tides
So spending swings from side to side
[Chorus]
Simple, Rolling, Geometric way
Three approaches for spending day by day
Balance the present with future's call
Intergenerational equity for all
Smooth it out, make it fair
Keep the endowment growing with care
[Verse 2]
Rolling averages take a different route
Three to five years of values they compute
Average the market values from the past
Spending levels that are built to last
When markets crash the spending doesn't dive
Keeps the institution's mission alive
[Chorus]
Simple, Rolling, Geometric way
Three approaches for spending day by day
Balance the present with future's call
Intergenerational equity for all
Smooth it out, make it fair
Keep the endowment growing with care
[Bridge]
Geometric smoothing is the sophisticated choice
Giving recent years a stronger voice
Weighted averages with exponential decay
Yesterday matters more than ten years away
Adapts to changes but keeps it stable
Making long-term planning more able
[Verse 3]
Intergenerational equity's the goal we seek
Current students and future ones who'll speak
Can't spend it all on today's bright needs
Tomorrow's scholars have their own good deeds
Balance fairness across the years
Through market joy and market fears
[Chorus]
Simple, Rolling, Geometric way
Three approaches for spending day by day
Balance the present with future's call
Intergenerational equity for all
Smooth it out, make it fair
Keep the endowment growing with care
[Outro]
Choose your method but remember this
Sustainability you cannot miss
From simple rules to complex schemes
Protect the future while funding dreams