Table supplied by Joyce Tichler using Spreadsheet developed by Eliot Auerbach

First read the front page article in the  October 2007 Newsletter. Then look at the table below and these notes.

This table is constructed from the Excel spreadsheet that was prepared by Elliot Auerbach and is available for downloading.

 

It illustrates what happens if you start with $100,000 in your retirement account and take the Minimum Distribution from it yearly. It accounts for both earnings and inflation in a simple "first approximation".

The expenditures column is the amount of income needed for living expenses - other parameters are listed below.

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Annuity Values as Depleted by Required Minimum Distribution


Assumptions


Age

Beginning Of Year

Balance

Minimum Required Distribution

Earnings

End of Year Balance

Expenditures (Escalated)

Excess or Deficit

Inflation Escalator

70

$100,000.00

$3,649.64

$5890.51

$102,240.88

$4,000.00

$-350.36

1.000

71

$102,240.88

$3,858.15

$6018.71

$104,401.44

$4,132.00

$-273.85

1.033

72

$104,401.44

$4,078.18

$6141.74

$106,465.00

$4,268.36

$-190.17

1.067

73

$106,465.00

$4,310.32

$6258.59

$108,413.26

$4,409.21

$-98.89

1.102

74

$108,413.26

$4,555.18

$6368.14

$110,226.23

$4,554.72

$0.46

1.139

75

$110,226.23

$4,813.37

$6469.17

$111,882.03

$4,705.02

$108.35

1.176

76

$111,882.03

$5,085.55

$6560.36

$113,356.83

$4,860.29

$225.26

1.215

77

$113,356.83

$5,347.02

$6641.00

$114,650.81

$5,020.68

$326.34

1.255

78

$114,650.81

$5,647.82

$6709.61

$115,712.60

$5,186.36

$461.46

1.297

79

$115,712.60

$5,933.98

$6764.74

$116,543.36

$5,357.51

$576.47

1.339

80

$116,543.36

$6,232.27

$6805.63

$117,116.73

$5,534.31

$697.96

1.384

81

$117,116.73

$6,542.83

$6830.72

$117,404.61

$5,716.94

$825.90

1.429

82

$117,404.61

$6,865.77

$6838.30

$117,377.15

$5,905.60

$960.17

1.476

83

$117,377.15

$7,201.05

$6826.60

$117,002.70

$6,100.48

$1,100.57

1.525

84

$117,002.70

$7,548.56

$6793.70

$116,247.84

$6,301.80

$1,246.76

1.575

85

$116,247.84

$7,854.58

$6739.23

$115,132.49

$6,509.76

$1,344.83

1.627

86

$115,132.49

$8,165.42

$6662.99

$113,630.05

$6,724.58

$1,440.85

1.681

87

$113,630.05

$8,479.85

$6563.41

$111,713.60

$6,946.49

$1,533.36

1.737

88

$111,713.60

$8,796.35

$6438.93

$109,356.18

$7,175.72

$1,620.62

1.794

89

$109,356.18

$9,113.02

$6287.98

$106,531.15

$7,412.52

$1,700.49

1.853

90

$106,531.15

$9,344.84

$6111.52

$103,297.83

$7,657.14

$1,687.70

1.914

91

$103,297.83

$9,564.61

$5910.93

$99,644.15

$7,909.82

$1,654.79

1.977

92

$99,644.15

$9,769.03

$5685.58

$95,560.70

$8,170.85

$1,598.19

2.043

93

$95,560.70

$9,954.24

$5435.01

$91,041.47

$8,440.48

$1,513.75

2.110

94

$91,041.47

$10,004.56

$5162.35

$86,199.26

$8,719.02

$1,285.54

2.180

95

$86,199.26

$10,023.17

$4871.26

$81,047.36

$9,006.75

$1,016.42

2.252

96

$81,047.36

$10,005.85

$4562.67

$75,604.17

$9,303.97

$701.88

2.326

97

$75,604.17

$9,947.92

$4237.81

$69,894.07

$9,611.00

$336.92

2.403

98

$69,894.07

$9,844.24

$3898.32

$63,948.15

$9,928.17

$-83.93

2.482

99

$63,948.15

$9,544.50

$3550.55

$57,954.21

$10,255.79

-$711.29

2.564

100

$57,954.21

$9,199.08

$3201.28

$51,956.41

$10,594.24

-$1,395.16

2.649

101

$51,956.41

$8,806.17

$2853.20

$46,003.43

$10,943.85

-$2,137.68

2.736

102

$46,003.43

$8,364.26

$2509.28

$40,148.45

$11,304.99

-$2,940.73

2.826

103

$40,148.45

$7,720.86

$2177.28

$34,604.88

$11,678.06

-$3,957.20

2.920

104

$34,604.88

$7,062.22

$1864.43

$29,407.08

$12,063.43

-$5,001.21

3.016

105

$29,407.08

$6,534.91

$1568.38

$24,440.55

$12,461.53

-$5,926.62

3.115

106

$24,440.55

$5,819.18

$1291.86

$19,913.23

$12,872.76

-$7,053.58

3.218

107

$19,913.23

$5,105.96

$1041.62

$15,848.89

$13,297.56

-$8,191.60

3.324

108

$15,848.89

$4,283.48

$822.43

$12,387.84

$13,736.38

-$9,452.89

3.434

109

$12,387.84

$3,643.48

$633.97

$9,378.32

$14,189.68

-$10,546.20

3.547

110

$9,378.32

$3,025.26

$471.94

$6,825.00

$14,657.94

-$11,632.67

3.664

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Posted Nov. 29, 2007. Second version