Withdrawal Calulator

[bizlady]

Found a "withdrawal calculator" that supposedly calculates your safe withdrawal amount.

You enter the age at retirement, funds, amount you want to remain in the portfolio when you pass, portfolio earnings %, age you will die, and pension and ss amounts. It spits out what you can take a month and totals other sources to show your monthly spending.

No idea what it bases calculations on, but for us, it did align with the firecalc and fidelity amount we can spend.

https://moneyzine.com/retirement/retirement-withdrawal-calculator/

 

[SevenUp]

Appears to be standard equations described in Time value of money.

Those ignore any Sequence of Returns Risk. For example, matching the "4% rule" result ($1000K starting balance, 30 year retirement, $40K/yr initial withdrawal, no other income) requires only a 1.252%/yr return according to those equations.

 

[rodi]

If I knew future earnings, age I was going to die, etc. I wouldn't need a calculator. Lol.

 

[m3bs]

The only way my numbers come close to that calculator is if I assume the rate of return is the amount over and above the rate of inflation. It basically assumes zero inflation. I'm not betting on that happening.....

 

[COcheesehead]

Straight line returns will mess with your head and your wallet and make both of them hurt.
Life doesn’t provide straight line returns.