﻿ Distribution Illustration Payouts

Distribution Illustration Payouts

# Example #1

A client wants to know how much money to deposit into an account that has a fixed rate of return of 4.5%. They need a monthly income of \$1,200 over 25 years.

## Value

Calculation Type

Distributions

Calculate

Current Value

Interest Rate

4.5

Number of Years

25

Type of Distribution

Level Withdrawals

Distributions per Year

12

End of Period

Amount of Each Distribution

\$1,200

Final Account Value

0

## Result

The deposit (Calculated Current Account Value) will need to be \$217,895.15.

# Example #2

What would the account balance need to be if they wanted \$1,500 per month?

## Data Entry

Change the Amount of Each Deposit prompt to \$1,500.

## Results

The deposit would need to be \$272,369.03.

# Example #3

What would the account balance need to be if they wanted to increase the payment by 3% per year?

## Data Entry

Change the Type of Distributions to Annual Increase by Percent and enter 3% for the Annual Increase in Distribution prompt.

## Results

The deposit would need to be \$371,450.01.