Assumptions
Starting Portfolio$30M
Initial Spend Rateexcl. taxes4.0%
Spend Growthannual increase2.4%
Nominal Return7.0%
Inflation2.4%
Management Fees0.4%
Tax Dragcap gains1.2%
Time Horizon45 yrs
Portfolio Value
Effective Spend Rate
Rises as portfolio shrinks with fixed spending
Default assumptions: 7% nominal return, 2.5% inflation (JPM 2026 LTCMA), 0.4% management fees, 1.2% tax drag. Spending grows at 2.5%/yr (matching inflation by default). Spend rate excludes taxes.
Market
Shocks
Shocks
No shocks. Add one to simulate a market correction.
Return Budget
Nominal Return7.0%
− Inflation−2.4%
− Fees−0.4%
− Tax Drag−1.2%
Real Return After Costs3.0%
− Spending ()−3.6%
Spend grows at2.4%/yr (= inflation)
Net Real Growth (Yr 20)-0.6%