The beauty of this calculator is its simplicity. It is designed for those who have already retired. With NestEggSpender you can estimate what will happen to your retirement savings when you withdraw money on a regular basis.
Only four entries are required.
1) Enter how much money you presently have in your retirement savings,
2) Estimate what interest you can expect to earn on that money over time,
3) Enter how much money you will withdraw each year, and finally,
4) Enter how many years of withdrawals you would like the NestEggSpender to calculate.
Press “Calculate” and you can see how much money will be left in your retirement savings after the entered number of years. The calculator will compound your savings at the interest rate you have entered and will increase your annual withdrawal amount by 2.5% each year to reflect inflation.
You can use NestEggSpender to make personal estimates before you visit your financial institution and compare your estimate with their more formal predictions. Use it to make educated estimates of how much you can afford to withdraw each year and still have enough to last your lifetime, or to leave to your loved ones. Run sample estimate scenarios and discuss the realities with your spouse, your advisor, or your retired friends.
Remember this tool is for estimating. If you need to be precise, work with your financial advisor to develop more accurate results that will reflect your actual investments, returns, and withdrawals.
One last note, although this tool will not provide precise predictions, it will provide an estimate that is accurate enough to let you know if someone is exaggerating or understating what you can expect from your retirement saving account.