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Use this calculator to determine the amount of your distributions - your investment payouts - over time. If you entere the number of years you want the distributions to last, this calculator determines the amount of the distribution in each period. If you enter a distribution amount, it will calculate how long before your balance runs out. Please note: the calculator does not account for personal income taxes and does not reflect distribution election choices.
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Definitions
- Starting balance
- Total amount that you currently have invested. Include any sources of investment savings such as 401(k)s, IRAs and Annuities that you wish to include in this analysis.
- Annual return
- This is the annual rate of return you expect from your investments after taxes. The actual rate of return is largely dependent on the type of investments you select.It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
When you are taking periodic distributions from an account or investment, the return earned is often lower due to more conservative investment choices to help insure a steady flow of income.
- Expected annual inflation rate
- What you expect for the average long-term inflation rate.
- Distribution amount
- This is the amount that you expect to be withdrawing from your investments. All distributions are assumed to be taken at the beginning of each period. If you choose the calculation option "Maximum periodic distribution" this field will be calculated.
- Distributions to last
- This is the number of years that your distributions are to last. If you choose the calculation option "Years balance will last" this field will be calculated.
- Inflation adjustments
- These selections allow you to adjust your distributions for inflation. If you choose "No adjustment for inflation" your distribution will remain at a constant amount for the entire duration of your distributions. "Increase distributions annually" will increase your distribution amount at the end of each year by the rate of inflation. This begins at end of the first year of distributions. Choosing this option helps illustrate the cost of providing a current amount of purchasing power throughout your distributions.
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