Income Calculator

Income Calculator

Introduction

The Copia Income Calculator is designed to offer Adviser support when looking at the Copia range of portfolios in decumulation.

It will accept an initial amount, a Risk Profile Score (1 to 5, where 5 is most risky) and the Investment Term (from 1 to 30 years). It then selects the relevant income portfolio and displays calculated results as described below.

Calculations

The calculator displays the calculated value for the Safe Withdrawal Rate (95% confidence), as a percentage and in absolute (£) terms, per annum. It will also show the Average Terminal Value at the end of the investment term assuming annual withdrawals at the Safe Withdrawal Rate (95% confidence). It also shows the corresponding values for the Withdrawal Rate (50% confidence).

Investment term: years
3Y
30Y
Investment forecast Rate (%) Amount (£)
Safe Withdrawal Rate (95% Confidence)* 5.09% £51
Average Terminal Value after 17 years £270
Withdrawal Rate (50% Confidence)** 6.34% £63
Natural Income Yield (Net after TER) 0.84% £8

Notes

Based on information as at 16 November 2020.

For most up to date information please check the Copia website.

See the Copia literature for a full explanation of the Safe Withdrawal Rate (95% confidence) and other important concepts in retirement planning.

* The Safe Withdrawal Rate (95% confidence) is the statistical maximum a portfolio can support such that the worst case (95th percentile) terminal value is positive at the end of the investment term. Put differently, there is a 95% likelihood that the portfolio lasts the investment term.

** The Withdrawal Rate (50% confidence) is the statistical maximum a portfolio can support such that the likely median (50th percentile) terminal value is positive at the end of the investment term. Put differently, there is a 50% likelihood that the portfolio lasts the investment term or there is a 50% likelihood that there is insufficient capital to continue to pay this withdrawal rate to the end of the investment term.

Both SWR and Withdrawal Rate (50% confidence) include an allowance for overall fees of 1%.

Copia Capital Management

Fleet House, 8-12 New Bridge Street, EC4V 6AL

Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

© 2021 Copia Capital

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