February 2005
Option 1 - Maximize Retirement Income:
This plan could be adjusted to reflect the distributions generated by a more traditional retirement plan. In order to sustain these increased distributions, withdrawals would need to be taken from the principal. However, these distributions would then need to be taxed at appropriate rates to compensate for the fact that there probably would not be any accrued interest surpluses when the account holder died. Changing the program in this manner could potentially require additional cash flow from general revenue as well. Therefore, such an option is not recommended for this program. Likewise, any other compromises or adjustments to the structure of this program will have a negative impact on the overall program performance.
Starting Account Balance: $110,870.11 (40 Years with $1,000 annual contributions)
| Monthly Distribution: $800.00 | Taxable | Years of Sustainability: 16.12 |
| Monthly Distribution: $750.00 | Taxable | Years of Sustainability: 17.75 |
| Monthly Distribution: $700.00 | Taxable | Years of Sustainability: 19.78 |
| Monthly Distribution: $650.00 | Taxable | Years of Sustainability: 22.37 |
| Monthly Distribution: $600.00 | Taxable | Years of Sustainability: 25.83 |
| Monthly Distribution: $550.00 | Taxable | Years of Sustainability: 30.75 |
| Monthly Distribution: $500.00 | Taxable | Years of Sustainability: 38.60 |
| Monthly Distribution: $450.00 | Taxable | Years of Sustainability: 54.73 |
| Monthly Distribution: $415.76 | Tax Exempt | Years of Sustainability: Indefinite |
Starting Account Balance: $185,984.34 (50 Years with $1,000 annual contributions)
| Monthly Distribution: $1,400.00 | Taxable | Years of Sustainability: 15.16 |
| Monthly Distribution: $1,300.00 | Taxable | Years of Sustainability: 16.89 |
| Monthly Distribution: $1,200.00 | Taxable | Years of Sustainability: 19.10 |
| Monthly Distribution: $1,100.00 | Taxable | Years of Sustainability: 22.03 |
| Monthly Distribution: $1,050.00 | Taxable | Years of Sustainability: 23.90 |
| Monthly Distribution: $1,000.00 | Taxable | Years of Sustainability: 26.14 |
| Monthly Distribution: $950.00 | Taxable | Years of Sustainability: 28.92 |
| Monthly Distribution: $900.00 | Taxable | Years of Sustainability: 32.48 |
| Monthly Distribution: $850.00 | Taxable | Years of Sustainability: 37.27 |
| Monthly Distribution: $800.00 | Taxable | Years of Sustainability: 44.27 |
| Monthly Distribution: $697.44 | Tax Exempt | Years of Sustainability: Indefinite |
Starting Account Balance: $363,904.70 (65 Years with $1,000 contributions from birth)
| Monthly Distribution: $2,700.00 | Taxable | Years of Sustainability: 15.48 |
| Monthly Distribution: $2,500.00 | Taxable | Years of Sustainability: 17.34 |
| Monthly Distribution: $2,300.00 | Taxable | Years of Sustainability: 19.74 |
| Monthly Distribution: $2,100.00 | Taxable | Years of Sustainability: 22.99 |
| Monthly Distribution: $2,000.00 | Taxable | Years of Sustainability: 25.09 |
| Monthly Distribution: $1,900.00 | Taxable | Years of Sustainability: 27.68 |
| Monthly Distribution: $1,800.00 | Taxable | Years of Sustainability: 30.95 |
| Monthly Distribution: $1,700.00 | Taxable | Years of Sustainability: 35.28 |
| Monthly Distribution: $1,600.00 | Taxable | Years of Sustainability: 41.43 |
| Monthly Distribution: $1,364.64 | Tax Exempt | Years of Sustainability: Indefinite |
Starting Account Balance: $111,590.60 (50 Years with $600 annual contributions)
| Monthly Distribution: $800.00 | Taxable | Years of Sustainability: 16.27 |
| Monthly Distribution: $750.00 | Taxable | Years of Sustainability: 17.93 |
| Monthly Distribution: $700.00 | Taxable | Years of Sustainability: 19.98 |
| Monthly Distribution: $650.00 | Taxable | Years of Sustainability: 22.62 |
| Monthly Distribution: $600.00 | Taxable | Years of Sustainability: 26.14 |
| Monthly Distribution: $550.00 | Taxable | Years of Sustainability: 31.19 |
| Monthly Distribution: $500.00 | Taxable | Years of Sustainability: 39.28 |
| Monthly Distribution: $418.46 | Tax Exempt | Years of Sustainability: Indefinite |
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