Retirement Planner — Drawdown vs. Borrow

Incomestead · Decumulation

Retirement Planner — Drawdown vs. Borrow

Two ways to live off a portfolio: sell it down, or borrow against it and never sell. Most calculators model the first and ignore the second. This one runs both, with a bad market early on switched on — because that is the case the second path has to survive to be worth anything. Nothing leaves this page.

Your assumptions

Every figure below is an assumption, including the ones we filled in. Change any of them and both paths move — that is the point of the tool, and the reason no single output here is a forecast.

Portfolio value today Assumption

Loan you already carryAssumption

Spending, first year Assumption

Expected return, per year Assumption · %

Loan rate, per year Assumption · %

Inflation, per year Assumption · %

Horizon Assumption · years

Model a bad market early on

Fall in the first year Assumption · %

Years flat afterwards Assumption · years

Fill in the assumptions above.

Retirement Planner — Drawdown vs. Borrow

Your assumptions

Sell it down

Borrow, don't sell

Net worth, both paths

What the borrowing path does to your margin

Year by year