What is the Distribution Phase?

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The Distribution Phase is the period from your retirement age until your estimated life expectancy age.

RETIREMENT SPENDING

The Retirement Spending amount represents your expected annual net cash outflow from your retirement age through your life expectancy age. This can be estimated from your spending history from the accounts aggregated in the dashboard or entered manually. You can also apply a yearly spending percentage decrease after inflation.

Note: If married and your spouse retires in a different year, your annual savings will be decreased by the retired spouse’s after tax salary (using the Tax Rate % assumption) salary until both spouses are retired. This adjustment can create a negative savings amount with a floor of the amount you selected for retirement spending.

 

Web:

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Mobile:

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PORTFOLIO NET CASH OUTFLOWS

Portfolio net cash outflows – which are equal to retirement spending and taxes on withdrawals – are withdrawn from sub-portfolios in the following order (as applicable):

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Exception: If you are in the lowest tax bracket but expect to be in a higher Federal tax bracket later within the Distribution Phase, Tax-Deferred withdrawals are taken earlier to take advantage of the lowest tax bracket.

 


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