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Calculators


Got a question that involves number crunching? Use the calculators on this page to find the mathematical answer to the most commonly asked number-crunching questions, and see your inputs displayed next to the graph, chart, and/or table output in a side-by-side display.

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Simple Sustainable Withdrawal Projector
$

Enter a number that represents total anticipated income shortfall in retirement after factoring in Social Security retirement income, pension income, and all other known sources of income. This is the amount of income that will need to be funded by current and future retirement savings.

$

Enter total value of current retirement savings, including 401(k) plans and IRAs.

$

Enter amount, if any, of estimated future periodic contributions to retirement savings.

Enter number of years until retirement. If you enter 30, for example, retirement takes place in year 31.

This calculator estimates the number of years that projected retirement savings will be able to provide the desired level of retirement income. This result is compared to a scenario in which retirement distributions are made based on an initial portfolio withdrawal percentage calculated to provide regular distributions over the entire specified retirement withdrawal period, with no funds remaining at the end of the period.




This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it an estimate or guarantee of future value. Investment fees and expenses have not been deducted. If they had been, the results would have been lower. When making an investment decision, investors should consider their personal investment horizons and income tax brackets, both current and anticipated, as these may further impact the results of this comparison.

This illustration assumes a fixed annual rate of return; the rate of return on your actual investment portfolio will be different and will vary over time, according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal.

The initial portfolio withdrawal percentage is calculated to allow regular annual withdrawals, adjusted for inflation at the specified rate, for the entire retirement distribution period, with no funds remaining at the end of the distribution period. For withdrawals based on the initial portfolio withdrawal percentage, the withdrawal in the first year of retirement is calculated by multiplying the investment portfolio balance by the initial portfolio withdrawal percentage. The withdrawal amount for each subsequent year of retirement is determined by adjusting the first year withdrawal amount for inflation, at the rate specified.

Simple Sustainable Withdrawal Projector Chart

Annual retirement income of $60,000 in today's dollars would, after adjusting for inflation, equate to $125,627 desired income in your first year of retirement.

Based on your current assets and expected contributions, a 4.66% initial portfolio withdrawal could result in income of $113,561 in your first year of retirement.
If you withdraw funds from your retirement portfolio in amounts equal to 100% of desired retirement income, your funds may be completely depleted in an estimated 23 years.

If withdrawals from your portfolio are based on an initial portfolio withdrawal percentage of 4.66%, your funds may provide regular income, as indicated, for the entire 25-year distribution period.



    Assumptions

  • This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it an estimate or guarantee of future value. Investment fees and expenses have not been deducted. If they had been, the results would have been lower. When making an investment decision, investors should consider their personal investment horizons and income tax brackets, both current and anticipated, as these may further impact the results of this comparison.
  • This illustration assumes a fixed annual rate of return; the rate of return on your actual investment portfolio will be different and will vary over time, according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal.
  • The initial portfolio withdrawal percentage is calculated to allow regular annual withdrawals, adjusted for inflation at the specified rate, for the entire retirement distribution period, with no funds remaining at the end of the distribution period. For withdrawals based on the initial portfolio withdrawal percentage, the withdrawal in the first year of retirement is calculated by multiplying the investment portfolio balance by the initial portfolio withdrawal percentage. The withdrawal amount for each subsequent year of retirement is determined by adjusting the first year withdrawal amount for inflation, at the rate specified.
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