Tax-Aware Drawdown Simulator (TLH + Inflation)

Inputs

Starting balance (X)

APR (annual return)

Start year

Current age

Base monthly withdrawal (Y)

Annual inflation on withdrawals

Federal ordinary rate

State ordinary rate

Federal LT cap gains rate

State cap gains rate

Tax model knobs (for Tax-Aware Managed Accounts)

This section lets you model how a professionally managed taxable account that actively implements tax-loss harvesting (TLH) can affect taxes and (therefore) portfolio longevity during drawdown. In simplified form, taxes are driven by (1) dividend yield, (2) capital gain distributions, and (3) the manager’s net realized gain/loss. TLH can create realized losses that offset realized gains, offset up to an allowed amount of ordinary income each year, and carry forward remaining losses—potentially reducing ongoing tax drag. These values are inherently variable; use conservative / baseline / optimistic scenarios.

Dividend yield (taxable ordinary dividends, annual % of balance)

Cap gain distribution yield (annual % of balance)

TLH net realized gain/loss rate (annual % of balance; negative = losses)

Annual ordinary-income offset cap from losses ($)

Tax payment timing

Max months (safety cap)

Ready

Important modeling note: The APR drives the portfolio value path. Dividend income + realized gains/losses are used only for tax calculations (they’re assumed to be embedded in the return). This keeps the model from “double counting” dividends as extra growth.

Results

Depletion time

—

Total withdrawn

—

Inflation-adjusted

Total tax paid

—

From modeled income

Ending balance

—

Balance Monthly withdrawal Tax payment (annual/monthly)

Amortization schedule

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