A B C D E

3
4 Inputs Outputs
5 Initial principal, $ $100,000 Principal left in year 35
6 Yearly income, initial $ $0 Total income
7 Yearly increase, % 0.0% Annualized return, %
8 Yearly income, as % of principal 8.0%
9 Expected return on fixed 5.0%
10 Expected return on equities 10.0%
11 Fraction in equities 50% Press F9 to recalculate
12 Volatility (sigma) 10.0%
13 Retirement Income Simulation, by Tom O'Haver, 1998, 1999. All rights reserved. http://www.wam.umd.edu/~toh

Annual income withdrawn Princ

$10,000 $120,000

$8,000 $100,000
$80,000
$6,000
$60,000
14 $4,000
$40,000
$2,000 $20,000
$0 $0
0 5 10 15 20 25 30 35 40 0 5 10 15

15 y Return Principal
16 on investment
17### $100,000 ### $8,000.00
18### 28% $108,533 ### $8,682.64
19### 10% $108,190 ### $8,655.16
20### 11% $108,404 ### $8,672.29
21### 1% $102,827 ### $8,226.13
22### -8% $93,082 ### $7,446.60
23### -3% $86,722 ### $6,937.79
24### -1% $81,362 ### $6,508.95
25### 15% $82,799 ### $6,623.94
26### 21% $86,802 ### $6,944.19
27### 3% $83,419 ### $6,673.56
28### 16% $85,434 ### $6,834.71
29### 16% $87,515 ### $7,001.20
30### -2% $82,024 ### $6,561.94
31### 16% $83,976 ### $6,718.07
32### 6% $81,859 ### $6,548.69
33### 5% $79,559 ### $6,364.76
34### 27% $85,840 ### $6,867.20
35### 16% $87,883 ### $7,030.66
36### 3% $84,534 ### $6,762.71

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 A B C D E
37### 3% $81,168 ### $6,493.44
38### 7% $79,501 ### $6,360.12
39### 20% $83,128 ### $6,650.27
40### 19% $86,500 ### $6,919.97
41### 13% $87,430 ### $6,994.40
42### -2% $81,547 ### $6,523.73
43### 8% $80,128 ### $6,410.25
44### 9% $79,132 ### $6,330.59
45### 22% $83,577 ### $6,686.13
46### -2% $78,147 ### $6,251.73
47### 1% $74,107 ### $5,928.56
48### 8% $73,037 ### $5,842.97
49### 8% $71,851 ### $5,748.11
50### 22% $75,982 ### $6,078.56
51### -3% $70,638 ### $5,651.01
52### 9% $69,909 ### $5,592.68

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 F G H I J
3
4 Return on equities
5 $69,909
$244,524 30%
6 25%
7 7.0% 20%
8 15%
9 10%
10 5%
11 0%
-5%
12
-10%
13
hts reserved. http://www.wam.umd.edu/~toh

Principal, $
$120,000
$100,000
$80,000
$60,000
14
$40,000
$20,000
$0
0 5 10 15 20 25 30 35 40

15 Net principal Net Annual Income increase factor

16 withdrawn
17 $100,000 ### $8,000 1.00
18 $108,533 ### $8,683 1.00
19 $108,190 ### $8,655 1.00
20 $108,404 ### $8,672 1.00
21 $102,827 ### $8,226 1.00
22 $93,082 ### $7,447 1.00
23 $86,722 ### $6,938 1.00
24 $81,362 ### $6,509 1.00
25 $82,799 ### $6,624 1.00
26 $86,802 ### $6,944 1.00
27 $83,419 ### $6,674 1.00
28 $85,434 ### $6,835 1.00
29 $87,515 ### $7,001 1.00
30 $82,024 ### $6,562 1.00
31 $83,976 ### $6,718 1.00
32 $81,859 ### $6,549 1.00
33 $79,559 ### $6,365 1.00
34 $85,840 ### $6,867 1.00
35 $87,883 ### $7,031 1.00
36 $84,534 ### $6,763 1.00

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 F G H I J
37 $81,168 ### $6,493 1.00
38 $79,501 ### $6,360 1.00
39 $83,128 ### $6,650 1.00
40 $86,500 ### $6,920 1.00
41 $87,430 ### $6,994 1.00
42 $81,547 ### $6,524 1.00
43 $80,128 ### $6,410 1.00
44 $79,132 ### $6,331 1.00
45 $83,577 ### $6,686 1.00
46 $78,147 ### $6,252 1.00
47 $74,107 ### $5,929 1.00
48 $73,037 ### $5,843 1.00
49 $71,851 ### $5,748 1.00
50 $75,982 ### $6,079 1.00
51 $70,638 ### $5,651 1.00
52 $69,909 ### $5,593 1.00

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