Retirement income distribution dashboard v2014a

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A blog posting on June 20th http://wp.me/p2Oizj-xP explains this dashboard.

http://blog.betterfinancialeducation.com/sustainable-retirement/how-does-safe-withdrawal-rate-research-compare-to-dynamic-withdrawals/

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Retirement income distribution dashboard v2014a

  1. 1. Long Term Portfolio (LTP) 2014 Sample Retirees - Her and Him All Closing Values for markets prior Oldest Birth Year 1954 Note: Expected Longevity = 50% to date: 6/9/2014 Youngest Birth Year 1954 Female Male $X=portfolio value; WR%=withdraw rate; $Y=ann living exp (w/ taxes) Longevity Percentile 50% Joint 89 89 His IRA 165,000 $X * WR% = $Y Initial Target POF 10% Individual 86 82 Her IRA 175,000 WR% = $Y / $X Portfolio % Decline Possibility of Adjustment (PoA) @ WR%: His Roth 175,000 LTP Equity ~ 25% $X = $Y / WR% Required: WR%: * PoA Sustainable @ Lowest Her Roth 170,000 Current LTP Value= $860,800 4.64% 10.00% POF @ Port. Value Living Trust #1 175,800 $819,478 4.8% 4.84% 15.00% 3,707$ Sustainable $786,948 8.6% 5.01% 20.00% 3,581$ Dist. $$ per $760,025 11.7% 5.16% 25.00% 3,477$ month. * WR% is a distribution rate; NOT a rate of return Note that the PoA # drives a decision more than portfolio values. Action taken BEFORE reaching PoA values ... (1) Portfolio Allocation "Reality Check" & Discussion (2) Turn off Transfer between Portfolios (3) Retrench spending Limitations Qtrly Dist from: 165,000 All Account 1,000,000 The balance of your portfolio represents the Acct Empties*: December-17 Empty*: September-35 Notes: Possibility of Excess (=100% minus PoA above). *Assumes ZERO return (simulates just cash) -------------------------------------------------------------------------------------------- Distribution Reservoir Portfolio (refilled 1/4/7/10) Port Target: Diff (+ Good) Living Trust #2 139,200 $139,200.00 $0 Ultra Defensive $1,000,000 <Combined Overall Total Value ($X) Living Expenses Reserve Mos. 36 $Y Monthly Distr. 3,867 $46,400.00 <Ann Distrib. Target ($Y) Federal and State Income taxes are INCLUSIVE in the annual distribution target. May-17 36.00 <# Months in Reservoir Additional taxes in the amount of: $0 in distributions are included here. Month/Year 0.00 <# Months over/(short) Life Expectancy Tables Entered at Retirement Age Note: income distribution are gross before taxes and before adviser fees (both paid from gross distributions). Life expectancy from Social Security tables. 25% Equity characteristics real return: 4.39%; Standard deviation: 6.45%.

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