Will you run out of money in retirement?
Running out of money in retirement is one of the largest
fears any retiree faces. Now more than ever,
pre-retirees and retirees should consider the
probability of outliving their assets.
This calculator can help determine the probability of
your assets lasting through your retirement. Simply
determine a withdrawal rate (i.e., the amount of money
that you are taking out of your total portfolio) and the
number of years you expect your retirement will last and
then choose a stock/bond allocation. The calculator will
show the probability of assets lasting through that time
period. For example, let’s assume you will withdraw 4%
of your assets annually, and you believe you will spend
25 years in retirement. If your portfolio is currently
allocated with 60% stocks and 40% bonds, there is a
92.8% chance your assets will last through that time
period.