There are various distribution methods for accounts with cash balances at retirement. The following is a list of the methods and brief descriptions.  Note that all payout methods (except 'Annuitize') are subject to RMD, which may affect the goal of the selected method.

Annuitize: This annuitizes the account over the life expectancy of the owner. The value entered is the payout in dollars per thousand per month.

Use Funds as Needed: Funds are distributed as needed.

The following distribution methods are categorized as restrictive distribution methods. This means that funds are not available for distribution if the restrictions on distribution have already been met.

For Example: If the distribution method is Retain Principal, the distributions are limited to reducing the cash balance of the account to the value it was at retirement.In the Gap Analysis calculator's Setup tab, this may be configured to allow distributions from an account as a last priority.

Retain Principal: This attempts to retain the principal of the account over the life expectancy of the client and spouse.

Amortize, no inflation:  Equal payments are made over retirement years.

Amortize, with inflation: Equal, inflation adjusted payments are made over retirement years.

Percent of Account: A specific percent of the account is paid out each year during retirement.

RMD Only:  Only Required Minimum Distributions are made from the account. Note that these are made on the last payment of the calendar year.

 

Summary of Retirement Payout Methods