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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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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.
©2017 Broadridge Investor Communication Solutions, Inc. All rights reserved.
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Thomas Bucklin, Registered Principal offering securities through Cambridge Investment Research, Inc. A Broker/Dealer. Member FINRA/SIPC. Investment Advisor Representative offering advisory services through Capital Investment Advisors, Inc., a Registered Investment Advisor, Cambridge, Capital Investment Advisors, and Fortress Financial are separate and unrelated companies.

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.



This communication is strictly intended for individuals residing in the state(s) of AL, CO, DE, FL, IL, IA, KY, MD, MI, MN, NM, RI, SC, TN, VA and WA. No offers may be made or accepted from any resident outside the specific states referenced.
 


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