# from the Fund Library

 Date: 11-Apr-98 - 10:46 AM Subject: Systematic Withdrawal PlansFrom: JH

Where can I find comparisons of W/D plan performance eg. If you invested \$100,000 10 yrs ago and received \$500 @ month over that time, how much capital would be left. Thank you.

 Date: 11-Apr-98 - 4:23 PM Subject: RE: Systematic Withdrawal PlansFrom: thbox

JH

The amount of 'capital' left depends on the growth rate of the investment doesn't it. If your \$100K is growing at 10% per year, and you're grabbing out \$500 per month, you'll have more left than if the \$100K is growing at only 8% per year.

FWIW, Templeton does a nice back-test analysis of the residual value of the TGF based on various withdrawal rates. I believe Trimark does as well, but I'm not sure.

 Date: 11-Apr-98 - 5:27 PM Subject: RE: Systematic Withdrawal PlansFrom: Scanner98

For more discussion on this topic -- and several great links -- you might want to return to the main Forum page; type withdraw in the Filter blank; change the Age: drop-down to 90 days and click the Show Threads button.

 Date: 12-Apr-98 - 1:43 AM Subject: RE: Systematic Withdrawal PlansFrom: Rob

Mackenzie also does one -- for the (ouch, this pains me to say) Industrial Growth fund.

Unfortunately, a calculation based on 10% growth and 8% withdrawal just doesn't work, 'cause the growth isn't in a straight line! Take a look at the Templeton one, Trimark, and Mackenzie. It'll at least give you an idea of what's going on.

 Date: 12-Apr-98 - 5:01 AM Subject: RE: Systematic Withdrawal PlansFrom: gummy

Wanna do The Math?
You got \$A earning a return of R and you withdraw \$P at the end of each year.
After N years you'll have left: A (1+R)N - P( (1+R)N-1)/R

Or, if you withdraw an increasing amount to keep up with inflation, y'all kin peek at:

Example: P = \$6K/year and A = \$100K would be a 6% Withdrawal Rate. With a return of 8% and inflation at 3%, it'd last just over 30 years.

 Date: 12-Apr-98 - 12:26 PM Subject: RE: Systematic Withdrawal PlansFrom: Bylo

gummy,

This presumes steady inflation-adjusted rates of return on the principal amount.

What happens if at some point during one's 30+ year withdrawal horizon there is, say a 50% correction followed by a decade-long bear market (e.g. like the 1973-74 bear, which happened "only" 25 years ago), and/or a period of sustained high inflation (e.g. from the mid-70s to early 90s)?

thbox,

Where can one find the "Templeton ... back-test analysis of the residual value of the TGF based on various withdrawal rates"?

 Date: 12-Apr-98 - 2:05 PM Subject: RE: Systematic Withdrawal PlansFrom: thbox

Bylo:

I have a paper copy. I don't know if its on their web site. (I'll work on transforming the paper to electronic form, and will e-mail you with it.)

 Date: 12-Apr-98 - 3:00 PM Subject: RE: Systematic Withdrawal PlansFrom: Al

Give this a try: Yahoo search,,, type IFP Canadian Financial Calculator Links... you may like it....

 Date: 12-Apr-98 - 10:30 PM Subject: RE: Systematic Withdrawal PlansFrom: Rob

Bylo,

Exactly, that's the point I was trying to make. Thanx for making it so much clearer....

 Date: 13-Apr-98 - 8:09 AM Subject: RE: Systematic Withdrawal PlansFrom: gummy

Y'all mean the REAL WORLD don't follow The Math?
Ya say ya wanna have yer portfolio increase a constant amount each year, in a market with a 9% annual return?
Piece o' cake.
Here's what The Math sez:

Can't y'all see the pretty curves?

Now, the REAL WORLD (using the TSE 300 index):

Uh ... The Math can't be wrong ... gotta be some mistake ...