Spending Wealth

This program analyzes the use of current wealth that earns a specified rate of return to finance spending over a specified horizon. You might use this program to determine how to spend an inheritance or how much wealth you need to accumulate in order to live comfortably after retirement.

By entering different parameter values, you can see how these changes affect your results. Unless you are sure of the values, it is usually a good idea to do a sensitivity analysis to see whether your answer is reasonably robust or depends critically on certain key assumptions.

Use the radio button to select the factor you want calculated, and enter numerical values for the other four attributes:

Horizon (if 20 years, enter 20):
Current wealth (if $500,000, enter 500000):
Annual after-tax rate of return on wealth (if 7%, enter 7):
Annual rate of increase in spending (if 2%, enter 2):
Current monthly spending (if $3000, enter 3000):