Investment Savings and Distributions - Financial Calculators from Dinkytown.net

Definitions

Current age

Your current age.

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.

Amount to contribute

This is the amount that you will add to your investment savings. You can add additional amounts weekly, monthly, quarterly or annually. All contributions are assumed to be made at the beginning of each period.

Annual return

This is the annual rate of return you expect from your investments after taxes. When withdrawing, the return earned is often assumed to be lower due to more conservative investment choices to help insure a steady flow of income. The actual rate of return is largely dependent on the type of investments you select. The S&P 500 for the ten years ending on December 31st, 2011 had an annual compounded rate of return of 2.92%, including reinvestment of dividends. From January 1970 through the end of 2011, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.01% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

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.

Years to contribute

This is the number of years you will be adding new money to your investment savings. If you wish to start withdrawals immediately, enter 0 for the years to contribute.

Inflation rate

What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2011 the CPI has a long-term average of 3.0% annually. Over the last 31 years highest CPI recorded was 13.5% in 1980.

Inflation adjustments and your contributions

To keep your periodic contributions at the same level choose the option "No adjustment for inflation". If you select "Adjust contributions annually for inflation" we will increase your periodic contribution at the end of each year by the rate of inflation.

Amount to withdraw

This is the amount that you expect to be withdrawing from your investment savings. You can make withdrawals weekly, monthly, quarterly or annually. All withdrawals are assumed to be taken at the beginning of each period. If you choose the option to "Calculate maximum withdrawal" this field will be calculated.

Withdrawals to last

This is the number of years that your withdrawals are to last. If you choose the option to "Calculate time balance will last" this field will be calculated.

Inflation adjustments and your withdrawals

These selections allow you to adjust your withdrawals for inflation. If you choose "No adjustment for inflation" your withdrawal will remain at a constant amount for the entire duration of your withdrawals. "Inflation adjustments begin with withdrawals" will increase your withdrawal amount at the end of each year by the rate of inflation. This begins at end of the first year of withdrawals. "Inflation adjustments begin immediately" will increase the withdrawal amount, that was entered or calculated, by the rate of inflation beginning immediately. Choosing this option helps illustrate the cost of providing a current amount of purchasing power throughout your withdrawals.

Contribution Results Summary
&NBSP;	Taxable	Tax Free
Current age	CURRENT_AGE	CURRENT_AGE
Starting balance	CONTRIB_STARTING_BALANCE	CONTRIB_STARTING_BALANCE
Amount to contribute	CONTRIB_AMOUNT CONTRIB_FREQUENCY MSG_CONTRIB_ADJUST_FOR_INFLATION	CONTRIB_AMOUNT CONTRIB_FREQUENCY MSG_CONTRIB_ADJUST_FOR_INFLATION
Annual return (after Taxes)	CONTRIB_ANNUAL_ROR_ATAX1	CONTRIB_ANNUAL_ROR2
Years to contribute	CONTRIB_YEARS1	CONTRIB_YEARS2
Total contributions	CONTRIB_TOTAL_CONTRIBUTIONS	CONTRIB_TOTAL_CONTRIBUTIONS
Total investment earnings	CONTRIB_TOTAL_INTEREST1	CONTRIB_TOTAL_INTEREST2
Balance after CONTRIB_YEARS1	WITHDRAW_STARTING_BALANCE1	WITHDRAW_STARTING_BALANCE2

Investment Savings and Distributions Ending Balance By Year

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Financial Calculators at http://www.dinkytown.net
(612) 331-2291
1730 New Brighton Blvd. PMB #111
Minneapolis, MN 55413

Definitions

Current age

Your current age.

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.

Amount to contribute

Annual return

Years to contribute

This is the number of years you will be adding new money to your investment savings. If you wish to start withdrawals immediately, enter 0 for the years to contribute.

Inflation rate

Inflation adjustments and your contributions

Amount to withdraw

Withdrawals to last

This is the number of years that your withdrawals are to last. If you choose the option to "Calculate time balance will last" this field will be calculated.

Inflation adjustments and your withdrawals

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