At the suggestion of some helpful folks on this board I recently used the Optimal Retirement Planner at www.i-orp.com. Although I found it useful, I'm concerned that all iterations are based on constant rates for inflation and return on equity for every year. Although it would still be speculation, does anyone know of a similiar calculator that allows the user to change these two variables (inflation and/or rate of return for each year? (Like seeing what a 15 % decrease in return during the first or second year of retirement causes.)
I have used the calcualtor at www.i-orp.com. It is one the best around. There are some good calculators at www.piperjaffray.com/si that will do a number of calculations. They all assume constant inflation and rates of return. You cannot get away from that problem. The only way that I am aware that you can solve this problem is to develop a spreadsheet and use the historical results of some strategy and inflation. Start with your nest egg with a given strategy for withdrawing your money on an annual basis. Like 4% adjusted for inflation each year. I have done this for my retirement to know how much I could withdraw safely. I can help you with this if you are not comfortable with making spreadsheets. There is no guarantee that your money will last since you are using historical returns, but is better than a fixed return or fixed inflation. If you are conservative with your investment returns (6 to 9%) and inflation (4 to 6%) estimates you get a very good idea using the calculators whether your money will last.glenn
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