Investment Horizon (in
years):
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
years
Enter the
number of years for the simulation. For example, if you select 30, every
30-year period from 1946 to 2000 (1946-1975, 1947-1976, ..., 1971-2000)
is run to determine success or failure.
Account Ending Value
Goal:
Don't Go Broke
Retain Principal
Retain Buying Power
Select the
goal at the end of the horizon. Don't Go Broke means you don't
run out of money before the horizon is over. Retain Principal means
you finish the horizon with the same amount as you started (not
adjusting for inflation). Retain Buying Power means the account
still has its buying power at the end of the horizon.
Required Historical Success
Rate:
100%
95%
90%
85%
80%
75%
66%
50%
At 100%, the
strategy would have succeeded in reaching the ending value goal in every
historical period. At 95%, 19 out of 20 historical periods were
successful, and so on.
Desired First
Year Withdrawal:
dollars
Specify the
amount you hope to withdraw during the first year in retirement (in
today's dollars). The simulation assumes you will adjust each subsequent
year's withdrawal amount based on the prior year's inflation rate, so as
to maintain your standard of living throughout the horizon. You will be
given the beginning balance needed to achieve this first year withdrawal
amount.
