Fund Drawdown Simulation
Fund Drawdown Simulation
This Demonstration lets you estimate the value of a pool of money (the fund) that increases in value due to an investment return on the fund (at rates between 0 and 10% per year) and decreases in value due to an annual withdrawal. An example would be to estimate how the value of a college fund changes over the four years that tuition and living expenses are withdrawn, while the balance of the fund continues to earn interest. Similarly, the value of a retirement nest egg can be estimated under a situation where the retiree makes annual withdrawals.