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INVESTMENT AND REGULAR WITHDRAWAL CALCULATOR
This tool is designed to illustrate the regular income stream
that could be produced from a non-registered investment. By providing a few
details about your investment plan, the Investment and Regular Withdrawals
calculator illustrates the depletion of assets through a regular withdrawal
program, while taking into account the growth of the assets over time.
Assumptions
Withdrawals over a given number of years – This
field captures the number of years over which you would like to make withdrawals.
Annual Rate of Return – Enter the
annual rate of return you expect to realize on your investment.
Investment Information
Initial Investment Amount – Enter the
amount of your initial lump sum investment. If you are calculating the potential
income stream generated from existing assets, enter the current value of your
account.
Periodic Withdrawal Amount & Withdrawal Frequency – These
two fields capture how much you are withdrawing and how often you are making
those withdrawals. The amount can be expressed as a dollar amount or as a percent
of the initial investment amount.
Withdrawals Indexed At – Enter the rate
at which you will be increasing your withdrawals from year to year. Indexing
is applied on an annual basis regardless of the frequency of your withdrawals.
If you are planning to withdraw the same amount each year, leave the field blank.
The indexing option is not available if the withdrawal amount is expressed as
a percentage.
Display Cash Flow – The Cash Flow option
doesn't change the results of the calculator. It simply allows you to control
the display of your income stream on screen.
What the Calculator Shows You
The calculator provides a number of details on your investment and systematic
withdrawal, including:
- your withdrawals per period,
- the total of your withdrawals over time,
- the growth realized on your investments,
- your closing balance per period.
The calculator also totals all of your withdrawals and presents the final value
of your investments.
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