Withdrawal Solver
With Taxes
Data You Enter
Marginal Tax Rate [MTR][%]
Starting Value
Starting Value/Deposit Date
Start Withdrawal Date
Note 1: The Start Withdrawal Date may be any time after the Starting Value/Deposit Date. The calculator will calculate the growth until your Start Withdrawal Date has been reached.
No. Of Withdrawal Years
Note 2: You can enter the No. Of Withdrawal Years and the software will calculate the End Date. You can then change the End Date and the No. of Withdrawal Years will recalculate to indicate the new No. of Withdrawal Years.
End Date
Yearly Rate of Return
Withdrawal Amount
Date if Birth
<Frequency>
Select Per Month or Per Year
Amount of Capital Gains That is Taxable [%]
Enter the percentage of Capital Gains that will be taxed. In Canada it is currently 50%.
To reset the % select File then Properties. Enter the amount and click OK.
Capital Gains Exempt Amount
Generally you will use either the % or the Amount not both.
Calculated Fields
Age at Start Date
Age at Start Withdrawal Date
Balance as
Age
Pre Tax Balance
How to:
Enter known data
You can solve for either the Starting Value or the Withdrawal Amount.
Example:
Enter Marginal Tax Rate [MTR][%] 42
Enter Starting Value 750000
Enter Starting Value/Deposit Date 01/21/2002
Enter Start Withdrawal Date 01/22/2002
No. Of Years will automatically be calculated 28
Enter End Date 01/22/2030
Enter Yearly Rate of Return [%] 7.1
Withdrawal Amount 0
Enter Date of Birth 05/01/1949
<Frequency>
Select Per Year
Your screen should look like this
Amount of Capital Gains That is Taxable [%] 50%
If 50% is not in the field change it.
Select File then Properties from the main menu
Enter 50 in the Amount of Capital Gains that is Taxable field. Click OK
Capital Gains that are exempt 0
Age at Start Date Calculated 52
Age at Start Withdrawal Date Calculated 52
Under <Data Guide>
Click Calc/Create
You screen should look like this
Click the ? beside Withdrawal Amount
Enter End Balance Desired screen appears
You can use this field to enter an amount that you want to have at the end of the withdrawal period. You may want to leave an inheritance or perhaps an amount for burial expenses.
Enter 10000
Click OK
The Calculator solves the Withdrawal Amount 58,153.08
The Spreadsheet is filled in.
Enlarge the Calculator if it is not already. Click the center icon.
You can now see how much you can withdraw after tax by looking at the various columns in the spreadsheet.
For Example if this was a Capital Gains situation the after tax withdrawal amount at Period 13 - 01/22/2014 Age 64 is $49,969.78
You may want to take a lump sum during the withdrawals for a purchase such as a vehicle.
Go To the Spreadsheet Column Other Withdrawal
[Use a Minus Sign-]
Go down to period 14
Enter -25000 (Do not forget the minus sign)
Click Recalculate under Other Withdrawal
The only change you may notice is The Deficit = is now -129,898.00
Click the ? beside Withdrawal Amount.
For the End Balance screen enter 10000
The screen updates.
Your -$25000 withdrawal is missing and the Pre Tax Balance is 149,898.11
Enter the -25000 in the period 14 field again
Click Recalculate under Other Withdrawal
The Withdrawal Amount in the data input section is 56,560.94
The End Balance is now $9,999.93
The total Withdrawal is $81,560.94 in the spreadsheet.
Your regular withdrawal + Your Vehicle
56,560.94 + 25,000 = 81,560.94
This is just one example of the innumerable ways to use this calculator.