TIPS Table

Here are TIPS Safe Withdrawal Rates and percentage balances for interest rates of 1%, 1.5%, 2%, 2.5%, 3%, 3.5% and 4%.

TIPS interest rate = 1%

Zero Balance Rate at Year 10 = 10.56%.
Zero Balance Rate at Year 20 = 5.54%.
Zero Balance Rate at Year 30 = 3.87%.
Zero Balance Rate at Year 40 = 3.05%.

Withdrawal Rate = 3%

Balance at Year 10 = 79%.
Balance at Year 20 = 56%.
Balance at Year 30 = 30%.
Balance at Year 40 = 2%.
Zero Balance in Year = 41.

Withdrawal Rate = 4%

Balance at Year 10 = 69%.
Balance at Year 20 = 34%.
Zero Balance in Year = 29.

Withdrawal Rate = 5%

Balance at Year 10 = 58%.
Balance at Year 20 = 12%.
Zero Balance in Year = 22.

Withdrawal Rate = 6%

Balance at Year 10 = 48%.
Zero Balance in Year = 18.

TIPS interest rate = 1.5%

Zero Balance Rate at Year 10 = 10.84%.
Zero Balance Rate at Year 20 = 5.82%.
Zero Balance Rate at Year 30 = 4.16%.
Zero Balance Rate at Year 40 = 3.34%.

Withdrawal Rate = 3%

Balance at Year 10 = 84%.
Balance at Year 20 = 65%.
Balance at Year 30 = 44%.
Balance at Year 40 = 18%.
Zero Balance in Year = 47.

Withdrawal Rate = 4%

Balance at Year 10 = 73%.
Balance at Year 20 = 42%.
Balance at Year 30 = 6%.
Zero Balance in Year = 32.

Withdrawal Rate = 5%

Balance at Year 10 = 63%.
Balance at Year 20 = 19%.
Zero Balance in Year = 24.

Withdrawal Rate = 6%

Balance at Year 10 = 52%.
Zero Balance in Year = 19.

TIPS interest rate = 2%

Zero Balance Rate at Year 10 = 11.13%.
Zero Balance Rate at Year 20 = 6.12%.
Zero Balance Rate at Year 30 = 4.46%.
Zero Balance Rate at Year 40 = 3.66%.

Withdrawal Rate = 3%

Balance at Year 10 = 89%.
Balance at Year 20 = 76%.
Balance at Year 30 = 59%.
Balance at Year 40 = 40%.
Zero Balance in Year = 55.

Withdrawal Rate = 4%

Balance at Year 10 = 78%.
Balance at Year 20 = 51%.
Balance at Year 30 = 19%.
Zero Balance in Year = 35.

Withdrawal Rate = 5%

Balance at Year 10 = 67%.
Balance at Year 20 = 27%.
Zero Balance in Year = 26.

Withdrawal Rate = 6%

Balance at Year 10 = 56%.
Balance at Year 20 = 3%.
Zero Balance in Year = 20.5.

TIPS interest rate = 2.5%

Zero Balance Rate at Year 10 = 11.43%.
Zero Balance Rate at Year 20 = 6.41%.
Zero Balance Rate at Year 30 = 4.78%.
Zero Balance Rate at Year 40 = 3.98%.

Withdrawal Rate = 3%
Balance at Year 10 = 94%.
Balance at Year 20 = 87%.
Balance at Year 30 = 78%.
Balance at Year 40 = 66%.
Zero Balance in Year = 72.

Withdrawal Rate = 4%

Balance at Year 10 = 83%.
Balance at Year 20 = 62%.
Balance at Year 30 = 34%.
Zero Balance in Year = 40.

Withdrawal Rate = 5%

Balance at Year 10 = 72%.
Balance at Year 20 = 36%.
Zero Balance in Year = 28.

Withdrawal Rate = 6%

Balance at Year 10 = 61%.
Balance at Year 20 = 10%.
Zero Balance in Year = 22.

TIPS interest rate = 3%

Zero Balance Rate at Year 10 = 11.72%.
Zero Balance Rate at Year 20 = 6.72%.
Zero Balance Rate at Year 30 = 5.10%.
Zero Balance Rate at Year 40 = 4.32%.

Withdrawal Rate = 3%

Balance at Year 10 = 100%.
Balance at Year 20 = 100%.
Balance at Year 30 = 100%.
Balance at Year 40 = 100%.
Zero Balance in Year = never.

Withdrawal Rate = 4%

Balance at Year 10 = 89%.
Balance at Year 20 = 73%.
Balance at Year 30 = 52%.
Balance at Year 40 = 24%.
Zero Balance in Year = 47.

Withdrawal Rate = 5%

Balance at Year 10 = 77%.
Balance at Year 20 = 46%.
Balance at Year 30 = 5%.
Zero Balance in Year = 31.

Withdrawal Rate = 6%

Balance at Year 10 = 66%.
Balance at Year 20 = 19%.
Zero Balance in Year = 23.

TIPS interest rate = 3.5%

Zero Balance Rate at Year 10 = 12.02%.
Zero Balance Rate at Year 20 = 7.04%.
Zero Balance Rate at Year 30 = 5.44%.
Zero Balance Rate at Year 40 = 4.68%.

Withdrawal Rate = 3%

Balance at Year 10 = 106%.
Balance at Year 20 = 114%.
Balance at Year 30 = 126%.
Balance at Year 40 = 142%.
Zero Balance in Year = never.

Withdrawal Rate = 4%

Balance at Year 10 = 94%.
Balance at Year 20 = 86%.
Balance at Year 30 = 74%.
Balance at Year 40 = 58%.
Zero Balance in Year = 60.

Withdrawal Rate = 5%

Balance at Year 10 = 82%.
Balance at Year 20 = 58%.
Balance at Year 30 = 23%.
Zero Balance in Year = 35.

Withdrawal Rate = 6%

Balance at Year 10 = 71%.
Balance at Year 20 = 29%.
Zero Balance in Year = 25.

TIPS interest rate = 4%

Zero Balance Rate at Year 10 = 12.33%.
Zero Balance Rate at Year 20 = 7.36%.
Zero Balance Rate at Year 30 = 5.78%.
Zero Balance Rate at Year 40 = 5.05%.

Withdrawal Rate = 3%

Balance at Year 10 = 112%.
Balance at Year 20 = 130%.
Balance at Year 30 = 156%.
Balance at Year 40 = 195%.
Zero Balance in Year = never.

Withdrawal Rate = 4%

Balance at Year 10 = 100%.
Balance at Year 20 = 100%.
Balance at Year 30 = 100%.
Balance at Year 40 = 100%.
Zero Balance in Year = never.

Withdrawal Rate = 5%

Balance at Year 10 = 88%.
Balance at Year 20 = 70%.
Balance at Year 30 = 44%.
Balance at Year 40 = 5%.
Zero Balance in Year = 41.

Withdrawal Rate = 6%

Balance at Year 10 = 76%.
Balance at Year 20 = 40%.
Zero Balance in Year = 28.

Have fun.

John Walter Russell
March 14, 2007
Expanded: March 15, 2007
Expanded: January 24, 2008