Limiting Total Spending/Consumption
I have created a simple Jack and Sally Sprat planner file to experiment with the impacts of changes on net worth, spending, returns, etc.
I set inflation to zero for the base case and kept returns at 6%; not real world but a clean starting point;
The Sprats have $100K per year in cash flow income from SS and an annuity. They have $1M in their asset account (under mutual funds for simplicity sakes) and zero in retirement accounts to create a true base case.
I want to have them spend their cash flow of $100K plus the proceeds from their investments but never touch the principal of $1M. So in this case it would be $160K per year. How can I set ESP up to do that? Fixed $ Reserve fund?
Thanks in advance for trying to help.