T.Rowe Retirement Calculator

[Spanky]

It seems their calculator is very conservative. It require a larger protfolio (> 1.5Mi) to get a 90% SWR of $4,000 /month for 40 years of retirement.

http://www.troweprice.com/common/ind...3D7952,00.html

[Spanky]

This is the link to the calculator to determine if your income from your investments can last for the duration of retirement. It has 5 model mixes. The best chance of survival appears to be the mix that has a large percentage of bonds and short-term securities.

Give it a try.
http://www3.troweprice.com/ric/RIC/



Spanky

[April]

Quote:

It seems their calculator is very conservative. It require a larger protfolio (> 1.5Mi) to get a 90% SWR of $4,000 /month for 40 years of retirement. http://www.troweprice.com/common/ind...3D7952,00.html

:-/

Hello, i need a quote for 72t distribution calculation using approximately $199,295.26 for a period of 5 years with first spouse being 58 years old and the second as him being 51 years old? Using all three calculations would be appreciated.
thanks, April

Quote:

It seems their calculator is very conservative. It require a larger protfolio (> 1.5Mi) to get a 90% SWR of $4,000 /month for 40 years of retirement. http://www.troweprice.com/common/ind...3D7952,00.html

Yup, keep working and send them your money to invest. If you retire today, they don't get any more of your money.

[charlie]

The calculator is probably a "Monte Carlo" type.

If you read the fine print, it changes your AA
every five years to become more conservative.

It also assumes your money is in an IRA and makes
adjustments for RMD.

All in all, I prefer FIREcalc.

Cheers,

Charlie

[ESRBob]

Yeah, the TRowe Price calculator always seems to come up with an SWR around 2.5%

I think Charlie's right -- it's uses Monte Carlo.

If you don't model in reversion to mean, (and reverse kurtosis or something like that) monte carlos can always come up with lots of strange lowball cases which increase volatility and skew results down from normal market returns.