HP12c calculation on uneven cash outflows
Though I am savvy with the use of my HP-12c calculator, I am trying to undercover a quick estimate of the number of years a CRUT will last at a set percentage payout. The challenge I face is the input of a fixed percentage instead of a fixed dollar amount. Does anyone know the input on the keypad? Or a website to go that can help?
$4,000, 000
11% payout, re-calculated annually
RoR average 6.20%
Don’t worry about trust administration fees.
Permalink Submitted by Bruce Steiner on Thu, 2008-07-24 21:42
A charitable remainder unitrust will never run out of assets. If the payout exceeds the investment return, the following year’s payout will be based upon a lower value.
Permalink Submitted by Catherine Turner on Fri, 2008-07-25 11:49
Good reminder. Technically, you are correct. The situation with this trust is that that investment performance has been poor for many years and there have been several negative years over the past 8 years, furthermore, the re-calc has been at times during market corrections, so the income stream has been severely affected and the account balance as dropped much quicker than expected. I would prefer to locate a spreadsheet that allows me to get a snapshot of the declining balance of the trust over time. I am sure that there is a website that has this available…..I was hoping that someone may have come across it in their experience……