How long will the money last?
A client has accumulated $100,000 at retirement and wants to start taking payments of $1,000 per month. They feel they can safely earn a 4.5% rate of return. How long will the money last?
Data Entry
Use the following values for the prompts:
Prompt 
Value 

Calculation Type 
Distributions 

Calculate 
Number of Years 

Current Account Value 
100,000 

Interest Rate 
4.5 

Type of Distribution 
Level Withdrawals 

Distributions per Year 
12 

Distribution Amount 
1,000 

Distributions Made at 
End of Period 

Final Account Value 
0 
Place the cursor on the # of Years prompt and click on the Calculate Cursor Line button.
Calculated Number of Years shows 10.4167.
How long will the money last if the payments increase by 2% per year?
Change Type of Distributions to Annually Increase by Percent and set Annual Increase in Distribution to 2%.
Calculated Number of Years now shows 9.4167 years.
How long will the money last if the payments increase by 3% per year?
Change the Annual Increase in Distribution to 3%.
Calculated Number of Years now shows 9.0833 years.