on line calculators
Is anyone aware of financial calculators available on the web that would allow a self adjusting withdrawal program?
By this I mean taking a fixed percentage of the portfolio's balance each year.
By doing this the income will go up and down over time based on the porfolio's performance but over the long run, the income should grow quite nicely.
The best from the fund companies that I've seen is the literature for the ICA fund from America funds which shows an example of this concept.
I believe the w/d rate they used was 6% of the balance each year.
Over many years, and even decades, this approach will produce a tremendous growth in income, if using a stock fund.
There is no free lunch though, you have to put up with income fluctations.
This is the approach I'm using and I am confident that it will work over time.
I would like to be able to plug some numbers into a web based calculator that would show this concept.