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What it isYour age today, how long the plan should run, and, if you're not retiring right away, the age you actually will. Years between Current age and Retirement age skip ordinary spending entirely, since a paycheck is covering it; the portfolio just grows.
Use this ifLeave Retirement age matching Current age if you're already retired or retiring right now. Set it later if you're still working and don't need portfolio income yet, a common case for someone planning to retire somewhere between age 60 and when Social Security starts, or later still.
Only ordinary living-expense spending is suppressed during this gap. Lump-sum expenses and charitable giving still fire on whatever age you've set for them, independent of this field, since you may genuinely want a lump sum while still working. Social Security, pension, and QLAC income still start on their own configured ages too, regardless of this setting. RMDs remain mandatory by their own age rule no matter what; if one falls due while you're still working, it's withdrawn as required, and any amount beyond what you actually need simply becomes extra after-tax income that year, the same way any other income surplus already does elsewhere in this tool.
Age today, how long the plan runs, and when you'll actually retire, if not right away.
What it isFour different ways to fund the part of each year's spending your guaranteed income (Social Security, pension, RMDs) doesn't cover. All four are established approaches real retirees and advisors actually use; none is inherently safer or better, they trade off differently, and the right one depends on how you actually manage, or want to manage, your own money.
Use this ifChoose Capital Preservation if you want to live primarily off income (interest and dividends) and spend bond and cash principal only when income falls short — equity is the last thing touched. Choose Time Segmentation if you organize your portfolio by time horizon, spending shorter buckets first while letting longer ones compound untouched. Choose Total-Return: Proportional if you keep everything invested and draw down each holding by its current share, without actively managing drift. Choose Total-Return: Rebalancing if you keep everything invested and actively sell whatever's grown above its target share to fund spending, a commonly cited practice among financial advisors and DIY investors.
Capital Preservation: interest and dividends sweep to cash and are spent first; when more is needed, principal is drawn in bucket order — cash, then short-term bond, then core bond, then TIPS, then equity last. Bond principal stays flat as long as income covers the gap. The goal is to live off the "fruit" (income) and preserve the "tree" (principal) for as long as possible.
Time Segmentation: each bucket represents a time horizon — cash covers near-term needs, bonds cover the medium term, equity funds the long term. Nothing sweeps to cash; every holding compounds in place within its own bucket. Withdrawals still follow the same bucket order (cash first, then short-term bond, then core bond, then TIPS, then equity), but the money grows as a total return inside each bucket rather than trickling income to cash along the way.
Total-Return: Proportional: everything stays invested and compounds together; each year's need is sold from every holding matching its current share of the total, whatever that share has drifted to. It never corrects drift, and it also never avoids selling equity in a down year, equity's current share still gets sold regardless of whether it just fell.
Total-Return: Rebalancing: also keeps everything invested, but sells preferentially from whatever's grown above its own share of your starting split, funding the withdrawal by trimming winners rather than a flat percentage of everything. If nothing is far enough above target to cover the withdrawal, what's left is funded defensive holdings first, equity only as a last resort. In practice this avoids selling equity in a year it's underweight, typically right after a downturn, which Proportional has no way to avoid.
Roth stays protected as the last resort in all four, and this setting works with Monte Carlo and Historical Simulation (both in Section 20, Run Your Simulation) too, whichever approach is selected here is the one their randomized or historical returns are applied to.
How each year's spending gets funded. Four approaches, described above; pick whichever matches how you manage money.
What it isEquity, core bond, short-term bond, TIPS, and cash — the five major buckets your combined tax-deferred balance gets divided into. This covers any account subject to RMDs, not just a traditional IRA: 401(k), 403(b), and similar employer plans all belong here too.
Use this ifIf you have bond funds, or if you have a CD or bond ladder instead of a fund, put its value in whichever bucket matches its typical duration — no need to track individual ladder rungs; this tool models a ladder's stable-principal behavior automatically under the Bucket Strategy withdrawal approach.
Custom Fund 1 and 2 cover anything that doesn't fit the categories above: a real estate fund, a variable annuity, whatever you hold, each with its own return assumption further down. The Roth bucket covers a Roth IRA or Roth 401(k) alike, kept separate since neither is taxed the same way or subject to RMDs; it's the last account touched if money runs short.
One real limitation worth knowing: this combined total gives you the correct total RMD dollar amount, since every account type shares the same age-based IRS divisor, but it doesn't track which specific account each dollar has to come from. Traditional IRAs (and 403(b)s) can be satisfied from any one of them, but each 401(k) must have its own RMD withdrawn directly from that plan.
Traditional retirement accounts (IRA, 401(k), 403(b)) are split across five buckets. Combined household total if married.
Withdraw after TIPS, but before equity. Set the return assumptions below.
Set this to reflect how the Roth is actually invested—stocks, bonds, or a mix—since it may also need to be drawn from.
Optional. Already-taxed accounts held apart from the Traditional and Roth balances above, not subject to RMDs.
What it isA separate, already-taxed account, savings, money market, or CDs, held apart from the retirement balances above. Its interest is taxed as ordinary income every year it's earned, whether or not you touch the account, the way real bank and CD interest actually works; withdrawing from it isn't taxed again, since that money's already been taxed once.
Use this ifYou're bridging the years before Social Security starts, want a dedicated backstop for later, or just have savings you'll draw on at some point and want it reflected here rather than left out of the picture entirely.
Two ways to draw it down, chosen below once this is on. As-needed puts it first in line, ahead of every other holding, once it becomes available, the standard tax-efficiency principle of spending already-taxed money before triggering a new taxable event elsewhere. Scheduled instead draws a fixed amount (today's dollars, growing with inflation) every year once available, whether or not that full amount is actually needed that year; any excess beyond what's needed that year simply becomes extra spending money, the same way a pension or Social Security surplus already does elsewhere in this tool. Either way, "available starting at age" has no expiration once reached, it stays eligible for the rest of the plan, so setting that age to your retirement start models a Social-Security bridge, and setting it to whenever RMDs begin models a later-life reserve, using the same mechanism.
This account sits outside the total-return pool entirely, and behaves the same way regardless of which Withdrawal Approach (Section 2) is selected.
What it isA regular, non-retirement brokerage account, stocks, funds, or similar, held apart from the retirement balances above and taxed differently from anything else in this tool: only the gain portion of a withdrawal is taxable, at long-term capital gains rates, not the whole amount, since the rest is already-taxed principal. Dividends are taxed annually as earned, also at capital gains rates, whether or not shares are sold.
Use this ifYou hold taxable investments outside your retirement accounts and want them reflected here, for a Social-Security bridge, a tax-flexible funding source, or just a more complete picture.
"Cost basis" is what you originally paid for what you're still holding, the part that isn't taxed again on withdrawal. Leave it equal to the starting balance if you're not sure, which assumes no gain has accumulated yet; enter a lower figure if you know this account already has embedded, unrealized gains, since that raises the taxable share of every future withdrawal. This tool tracks one blended basis for the whole account (the average-cost method), not individual purchase lots.
As-Needed and Scheduled work exactly as they do for Savings & CDs above, and this account sits second in line, right after Savings & CDs and before any Traditional holding, the standard tax-efficiency principle of spending already-taxed money first. 2026 federal long-term capital gains rates (0%/15%/20%, IRS Rev. Proc. 2025-32) are used; the 3.8% Net Investment Income Tax surtax on higher incomes is not modeled.
What it isHow much gross income you need each year before taxes, in today’s dollars, not counting charitable contributions or lump-sum expenses (those are entered separately below). Federal income taxes are calculated on top of whatever you enter here, not subtracted from it.
Use this ifAlways — required for every scenario. Qualified Charitable Contributions (QCDs), cash charitable contributions, and lump sum withdrawals are entered separately below and add to this number as they were not included in spending above.
This figure grows automatically with the inflation rate you set, so you only need today's number in today's dollars, not a future estimate.
Your annual living costs, and what Social Security already covers.
What it isModels what happens after one spouse dies — Social Security drops to the larger of the two benefits, tax brackets often get higher, and RMDs continue based on the survivor's age.
Use this ifYou're married and also want to see how the plan holds up for whichever spouse lives longer.
The tool compares both expected lifespans to determine who's likely to go first, then automatically models the aftermath: Social Security keeps the larger benefit, and every RMD from that point forward uses only the survivor's age. If you'd rather not model a predecease at all, set both lifespans comfortably beyond your plan's end age.
Enter each spouse's Social Security as the amount they actually receive right now, whether that's their own earned benefit or a spousal benefit based on the other spouse's record; the tool only needs the dollar figure, not which kind it is. That matters most if one of you is on a spousal benefit, since it's usually smaller than what you'd receive as a survivor, entering it correctly now is what makes the automatic switch-over accurate later.
Optional. Adds Spouse 2's own age, Social Security, and share of the Traditional balance, since RMDs are based on each person's own age, not a household average.
Affects RMDs, since each spouse's age sets their annual divisor and percentage. The spouse with the shorter lifespan determines when the survivor benefit is triggered; this is the larger of the two benefits and, by default, the whole Traditional balance rolls over to the survivor's RMD age table going forward (check the IRS option after toggling to see the IRS option to add a spouse as a beneficiary instead).
What it isFederal tax is always calculated from the real IRS brackets. State tax is optional and only calculated for the states listed here; pick "No state income tax" for states that don't tax income at all, or "Other" to enter your own rough effective rate.
Use this ifYou want a more complete after-tax picture. Leaving this off simply omits state tax from every result, the way this tool always has.
The "Other" option applies your entered rate to the same taxable-income figure used for federal tax, including any Social Security that's federally taxable, which is a rough approximation for a state that may tax things differently.
Optional. Adds state income tax on top of the federal calculation, for the states built in so far.
What it isA pension is a fixed payment from a former employer, usually for a lifetime. An annuity already in payout works the same way, it's taxed as ordinary income, not using the Social Security formula.
Use this ifYou (or your spouse) already receive one of these. One caveat: a non-qualified annuity bought with after-tax money normally has part of each payment tax-free — this tool taxes the full amount, so it may run a little higher than the actual tax bill.
Each spouse's own survivor continuation percentage is completely independent of the other spouse's, and independent of how Social Security's own rule works. The reduction takes effect the year a spouse actually dies, not the following year.
If the annuity was purchased with Traditional IRA or 401(k) money and it's already annuitized, its payments already satisfy that contract's own RMD; don't also include its original value in Section 3's Traditional balance, or you'll count the same money twice.
A pension or already-in-payout annuity for either spouse.
What it isThe annual return you expect from each part of your portfolio — a single flat average annual return, not a market simulation. Moderate and Conservative presets give reasonable starting points.
Use this ifAlways — every scenario needs these. If a bond field represents a CD or bond ladder, use its blended average yield here. TIPS can model a TIPS ladder too, though its real-yield-vs-accretion split is more involved.
Adjusting any single number here automatically switches the label to Custom, so you always know at a glance whether you're looking at a preset or your own numbers. Custom Fund 1 and 2 also get their own return assumptions here, each split into a yield and a price return, so you can model any mix of holdings.
Expected annual return for each asset class. Presets are available, or you can set your own.
Custom funds: set a yield (swept to cash, like bond interest) and a price return (compounds in place, like stock appreciation) to model any mix.
Not affected by the market shocks entered below; custom funds always use these rates.
What it isA QLAC is a special kind of annuity you buy with tax-deferred retirement money, an IRA or 401(k) alike, that starts paying you income later in life, often in your 80s. Premiums reduce your Traditional balance and therefore your RMDs starting in the year you purchase one.
Use this ifYou already have one, or if you're worried about outliving your savings and want a guaranteed paycheck that kicks in later, in exchange for locking up some money now.
The premium comes out of your core bond fund balance the year you purchase it, which is also what reduces your near-term RMD, since that money is no longer part of the balance the RMD is calculated on. The results narrative shows exactly how much of your core bond fund goes toward it once you've entered a premium.
Optional. A deferred annuity purchased from the core bond fund, income starting later in life.
What it isA deferred income annuity (DIA) is purchased with after-tax money and begins paying guaranteed income at a future age you choose. Unlike a QLAC, it does not come out of your IRA and has no effect on your RMDs or Traditional balance.
Use this ifYou already own one, or want to model the effect of converting a lump sum of after-tax money into a guaranteed income stream that starts later in retirement.
Enter the annual income in today’s dollars. The premium is paid with after-tax savings and is not tracked here; the tool simply adds the income from the start age onward. If your annuity has a cost-of-living adjustment, check the inflation-adjusted box. The income is treated as fully taxable ordinary income, consistent with how pensions are modeled.
Optional. After-tax deferred annuity; adds income from a chosen age, no IRA or RMD impact.
What it isA QCD sends money straight from your IRA to a charity, so it never counts as your taxable income, and it also counts toward satisfying your RMD.
Use this ifYou're 70½ or older, already give to charity, and want to reduce taxable income at the same time. Add this on top of your spending need above; do not include it in required income.
QCD eligibility starts at 70½, a different age than when RMDs begin, so you can use this strategy for several years before RMDs are required. The amount given reduces what's left of your RMD dollar for dollar, and unlike a regular withdrawal followed by a gift, it's excluded from income entirely rather than deducted from it.
Direct IRA-to-charity transfer, age 70½+. Capped at $111,000/person for 2026.
What it isGiving to charity the regular way — you withdraw the money first, then donate it, taxed like any withdrawal. Under current IRS rules, cash to a public charity gets this deduction even without itemizing.
Use this ifYou give to charity but aren't using a QCD, for example if you're not yet 70½, or you give in addition to a QCD. Donor-advised funds don't qualify for this deduction.
Giving beyond the $1,000 single / $2,000 married cap doesn't reduce your taxes any further in this tool, since it doesn't model full itemizing, only the above-the-line deduction available to non-itemizers. It stacks on top of your standard deduction rather than competing with it.
Regular charitable giving from a withdrawal — taxable, but deductible up to $1,000/$2,000.
What it isA one-time cost in a specific year, like buying a car or helping pay for a home, taxed like any other withdrawal.
Use this ifYou anticipate a big expense at a specific age. It adds to your spending need — a $40,000 car at 80 adds $40,000 that year; it isn't considered regular spending.
Each of the three slots works independently, with its own optional description, amount, and age; leave an amount at $0 to skip a slot you're not using. A lump sum can count toward that year's RMD or push you past it, just like any other withdrawal.
Up to three one-time costs, each affecting only its own specific year.
What it isOne-time permanent reductions in spending at specific ages, modeling the well-documented decline in real retirement spending over time.
Use this ifYou expect your spending to drop meaningfully as you age — research (Blanchett 2014; JP Morgan Guide to Retirement) shows real spending typically falls 25–30% from your early 60s to your mid-80s.
Each step-down fires once when that age is reached. The reduced amount then continues to inflation-adjust normally from that point forward. Step-down ages before your retirement age are ignored. Using fewer than three step-downs is fine — just leave the unused ones at 0%.
Up to three permanent spending reductions at specific ages, reflecting how real retirement spending actually declines over time.
What it isTemporarily overrides your normal return assumptions to simulate a bad year, or a stretch of them, like a real crash.
Use this ifYou want to see your income survives a real downturn. All three shock sections can also chain together into one longer event with consecutive start ages — see the Instructions for a worked example.
Two historical presets are built in, one modeling 2008-2009 (equities down sharply, bonds up), the other 2022-2023 (stocks and bonds down together, then recovering), or you can enter fully custom numbers for either year. Custom funds are never affected by a shock; they always use their assumed rates.
Simulate a market crash or a specific bad stretch, at any age.
Optional. A second, independent bad stretch at a different age, same mechanics as the first.
Optional. A third, independent bad stretch at yet another age.
What it isA modeled shift in federal tax rates starting at whatever age you choose, held for the rest of the plan. It uses two separate adjustments, one for taxable income below your threshold, one at or above it, since real tax changes are rarely a single uniform shift; historically they've concentrated at either the top or the bottom of the bracket table.
Use this ifYou want to see how a future policy change, especially one weighted toward higher or lower incomes the way most real changes have been, would affect your plan, separate from today's tax law.
Enter a positive number for an increase or a negative number for a decrease in each field; leave one at 0 to change only the other side. A bracket that straddles your threshold is split at the exact dollar line, the portion below gets the low-side adjustment, the portion above gets the high-side one, so nothing gets rounded up or down to whichever side is "closer." This shifts rates only, not the income levels where each bracket starts, and not the standard deduction or the 65+ senior bonus, so it stays a clean comparison.
Model a future increase or decrease to federal tax rates, with separate adjustments above and below a taxable income threshold.
Choose how to model returns, then click Run. Market shock and tax-rate overlays (sections 16–19) apply to Stable only.