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Author: JWR1945a One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 72254  
Subject: Another Sample Calculation Date: 7/6/2008 10:14 PM
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Withdrawing 5% (real) during hyperinflation

Simplified Automatic Allocator

Investment Portfolios Total: 100000

High Growth Portfolio:
Dividend Yield: 4.50 percent
Dividend Growth: 7.50 per year (nominal)
Allocation: 70 percent

High Yield Portfolio:
Dividend Yield: 8.20 percent
Dividend Growth: 0.00 per year (nominal)
Allocation: 30 percent

Initial TIPS Balance: 0
TIPS Rate: 2.00 percent (real)

Inflation: 6.00 percent

Total Invested: 100000

WITHDRAWAL AMOUNT: 5000 per year (real)

………….. Real…………..….Real……..…..Real
………….. Dividend……….Retiree……..TIPS
Year…….Income…………Income……..Balance
0...5610…5000…0
1…5515…5000…610
2…5429…5000…1138
3…5351…5000…1589
4…5281…5000…1972
5…5218…5000…2292
6…5161…5000…2556
7…5112…5000…2768
8…5068…5000…2935
9…5031…5000…3062
10…4999…5000…3154
11…4972…5000…3216
12…4951…5000…3253
13…4935…5000…3269
14…4923…5000…3269
15…4916…5000…3257
16…4913…5000…3238
17…4914…5000…3215
18…4918…5000…3193
19…4927…5000…3175
20…4939…5000…3166
21…4955…5000…3168
22…4974…5000…3187
23…4996…5000…3224
24…5021…5000…3285
25…5049…5000…3371
26…5080…5000…3488
27…5114…5000…3637
28…5150…5000…3824
29…5189…5000…4050
30…5230…5000…4319
31…5274…5000…4636
32…5320…5000…5002
33…5368…5000…5422
34…5419…5000…5898
35…5471…5000…6435
36…5526…5000…7035
37…5583…5000…7701
38…5642…5000…8438
39…5702…5000…9249
40…5765…5000…10136
41…5830…5000…11104
42…5896…5000…12156
43…5965…5000…13295
44…6035…5000…14526
45…6107…5000…15852
46…6181…5000…17276
47…6256…5000…18802
48…6334…5000…20434
49…6413…5000…22176
50…6493…5000…24033

Have fun.

John Walter Russell
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