### Question about percent of expenses funded

Posted:

**Fri Feb 29, 2008 8:51 pm**Hi Jim!

I’m really glad I came across your Flexible Retirement Planner…I can’t wait to implement it with clients. I do however need one clarification.

I am having a hard time getting my arms around the “% of expenses funded” figure and want to see if I’ve got it:

The Median Total Withdrawal is the amount, “chosen” during the iterations, where half of the income figures used come in above the amount specified as annual spending and half come in below the amount specified….correct?

THEN, the “% of expenses funded” says that out of x-thousand iterations, the amount “chosen” during the iterations was on average x% of the spending amount specified?

Example:

Annual Retirement Spending Specified: $50,000

Median Total Withdrawal: $50,438 – the mark where 50% of the iterations used an amount above this and 50% of the iterations used an amount below this.

% expenses funded: 97.3% This says that, on average, over all the iterations, the spending (and thus, withdrawal) amount used was 97.3% of $50,000 (the annual retirement spending specified)

I appreciate you getting back with me! Once again…this is a SUPER tool!

I’m really glad I came across your Flexible Retirement Planner…I can’t wait to implement it with clients. I do however need one clarification.

I am having a hard time getting my arms around the “% of expenses funded” figure and want to see if I’ve got it:

The Median Total Withdrawal is the amount, “chosen” during the iterations, where half of the income figures used come in above the amount specified as annual spending and half come in below the amount specified….correct?

THEN, the “% of expenses funded” says that out of x-thousand iterations, the amount “chosen” during the iterations was on average x% of the spending amount specified?

Example:

Annual Retirement Spending Specified: $50,000

Median Total Withdrawal: $50,438 – the mark where 50% of the iterations used an amount above this and 50% of the iterations used an amount below this.

% expenses funded: 97.3% This says that, on average, over all the iterations, the spending (and thus, withdrawal) amount used was 97.3% of $50,000 (the annual retirement spending specified)

I appreciate you getting back with me! Once again…this is a SUPER tool!