RFI User Guide - Withdrawal Patterns

 

RFI Withdrawal Patterns

 

Some new retirees go on a costly travel binge, others do the reverse by downsizing a wide range of needs, and others have their own preferences. RFI provides considerable flexibilty in allowing retirees to formulate their desired pattern of spending during the deferment period.   By clicking on any of the buttons in the "Withdrawal Pattern" column of the scenario definition table, the user can define and then assign any one of several patterns to one or more RFI scenarios.

RFI allows you to define up to 10 withdrawal patterns; once you define a pattern you can use it for one or more Scenarios on the main RFI screen.

The basic withdrawal pattern (shown on the screen-shot above) is a constant annual change.  In the example above, a 2% annual increase is defined; the annual change can be positive, negative, or zero.  Note that you can give a name to the pattern in the "Your Pattern Description" field. The "name" you enter here is displayed on the main RFI scenario definition table for easy reference.

In addition to percent increase and percent decrease withdrawal patterns, you can also define "U-shaped" patterns.  To do so, click the "Use U-shaped withdrawal pattern" option; then fill in the 4 fields associated with this option.

An example of the definition screen for a U-shaped withdrawal pattern is shown below.  Note the following:

Clicking the "Save" button saves the withdrawal pattern for later use in one or more RFI scenarios; clicking the 'OK' button saves the withdrawal pattern and also assigns it to the "active" RFI scenario.

When the "U rapid increase" withdrawal pattern is assigned to RFI Scenario 1 as shown below, the monthly spendable funds chart reflects the U shaped pattern during the annuity deferment period:

 

In addition to "normal" U-shaped withdrawal patterns, RFI allows you to define "inverted" U-shaped patterns by entering a value greater than 100% in the "Minimum withdrawal amount as % of initial amount".

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