# Overview

#### Main Menu Name: **Fundlife**

Calculates the length of time money or other assets will last given a specified rate of withdrawal and expected rate of return.

### In this article:

# Background

It is essential that the adequacy of a retirement fund or other special fund be tested. Adequacy implies that if money is withdrawn from the fund at a stated rate over a given period of time, that it will satisfy the purpose for which it was intended.

If the analysis shows that a particular rate of withdrawal is too great or the expected rate of return that replenishes the fund is too low, withdrawals may have to be reduced, or a more aggressive investment policy may have to be pursued. This calculation is not intended to represent the past or future performance of any investment.

# Why should I use this calculator?

- To measure the adequacy of a fund to meet given objectives over a stated period of time.
- To determine whether or not the level of withdrawals from a fund can safely be increased within the parameters of the objective of the fund.
- To determine what level of return will increase (or decrease) the number of years the fund will last.

# Getting Started

It is essential that the adequacy of a retirement fund or other special fund be tested. Adequacy implies that if money is withdrawn from the fund at a stated rate over a given period of time, that it will satisfy the purpose for which it was intended.

If the analysis shows that a particular rate of withdrawal is too great or the expected rate of return that replenishes the fund is too low, withdrawals may have to be reduced, or a more aggressive investment policy may have to be pursued.

# Entering Data

**Rate of Withdrawal:**Enter the rate of withdrawal (from 6%-20%).**Expected Rate of Return on Investment:**Enter the projected rate of return (5%-15%).

**Note:** If the Expected Rate of Return is Equal to or Greater than the rate of withdrawal, fund will last indefinitely, or increase over time.

# Results

The program calculates the number of years that the fund will last.

## Comments

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