Check the background of this financial professional on FINRA's BrokerCheck.
Steve Jones, CPA, CFP®

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.

Calculator: Print This Page
Retirement Sustainable Withdrawal Rate Accumulation Projection
$

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.

$

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.

Select withdrawal percentage for comparison purposes. For example, if you enter 4%, the calculator will compare desired income to retirement savings withdrawals based on portfolio withdrawals equal to 4% of portfolio value in first year of retirement.

This calculator compares:

(1) Desired annual income in retirement (adjusted for inflation), to

(2) The amount of annual income that might be generated based on projected retirement resources and a given intial portfolio withdrawal percentage.



This calculator assumes that all taxes due on retirement investment portfolio prior to retirement are paid with outside funds. The calculator assumes that all distributions made in retirement are fully taxable at the specified tax rate.

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.

Retirement Sustainable Withdrawal Rate Accumulation Projection 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. Accounting for taxes due in retirement, this would mean that your retirement savings would have to provide for an initial distribution of $157,033.

Based on your current assets and expected contributions, a 4% initial portfolio withdrawal in your first year of retirement would result in a gross distribution of $121,990. After taxes, you would have $97,592.
Based on your current assets and expected contributions, your retirement savings could grow to $3,049,759 by the time you reach retirement.

In order to receive a 4% initial portfolio withdrawal equal to $157,033, you would need to have accumulated $3,925,834 in retirement savings by the time you reach retirement. That would require additional current assets in the amount of $204,124, or approximately $15,968 in additional annual contributions.



    Assumptions

  • This calculator assumes that all taxes due on retirement investment portfolio prior to retirement are paid with outside funds. The calculator assumes that all distributions made in retirement are fully taxable at the specified tax rate.
  • 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.
©2018 Broadridge Investor Communication Solutions, Inc. All rights reserved.
Connect with us on: Go to Twitter  


 
 
 
IMPORTANT NOTE: Steve Jones is a registered representative with the following registrations 6, 63, 7 and can transact business with clients in CO, IN, KS, NY.  Steve Jones is also an investment adviser agent licensed in IN. If you are not a resident of the states noted above, all investment-related information on this site is for informational purposes only and does not constitute a solicitation or offer to sell securities or investment advisory services over the internet. Such an offer can only be made and Steve Jones can only conduct business in states where Steve Jones is registered to conduct business. Any communication with a prospective client shall be conducted by Steve Jones only if he is registered in the state where the prospective client resides.
Securities offered through H.D. Vest Investment ServicesSM, Member SIPC
Advisory Services offered through H.D. Vest Advisory ServicesSM
6333 North State Highway 161, Fourth Floor
Irving, TX 75038 972-870-6000
www.finra.org

FMR CPAs & Advisors is not a registered broker/dealer or independent investment advisory firm.


This communication is strictly intended for individuals residing in the state(s) of CO, IN, KS and NY. No offers may be made or accepted from any resident outside the specific states referenced.
 


Check the background of this financial professional on FINRA's BrokerCheck.