WOLFRAM|DEMONSTRATIONS PROJECT

Fund Drawdown Simulation

​
duration under consideration (years)
30
initial value of fund ($000's)
2500
average interest rate earned by fund
0.05
initial annual withdrawal ($000s)
0
annual withdrawal increase
0
year
value($K)
withdrawal($K)
% withdrawn
0
2500.
0
0.
1
2628.
0
0.
2
2763.
0
0.
3
2905.
0
0.
4
3054.
0
0.
5
3210.
0
0.
6
3375.
0
0.
7
3548.
0
0.
8
3730.
0
0.
9
3921.
0
0.
10
4122.
0
0.
11
4333.
0
0.
12
4555.
0
0.
13
4789.
0
0.
14
5034.
0
0.
15
5292.
0
0.
16
5564.
0
0.
17
5849.
0
0.
18
6149.
0
0.
19
6464.
0
0.
20
6796.
0
0.
21
7144.
0
0.
22
7510.
0
0.
23
7895.
0
0.
24
8300.
0
0.
25
8726.
0
0.
26
9173.
0
0.
27
9644.
0
0.
28
10140.
0
0.
29
10660.
0
0.
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would be to estimate how the value of a college fund changes over the four years that tuition and living expenses are withdrawn, while the balance of the fund continues to earn interest.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.