Withdrawal Assumptions
Suppose you have a client with $1 million who needs current income for the next 30 years. Assuming a constant annual after-inflation investment return (ranging from +5% down to -5% per year), here is how much the client could spend each year for the next 30 years (source: WSJ):
Return* |
Spend** |
|
Return* |
Spend** |
5% |
$65K |
-1% |
$28K |
|
4% |
$58K |
-2% |
$24K |
|
3% |
$51K |
-3% |
$20K |
|
2% |
$47K |
-4% |
$17K |
|
1% |
$39K |
-5% |
$14K |
|
0% |
$33K |
|
|