I'm guessing the minimum drawdown rates are on the current balance at the beginning of the year, but couldn't find clear details.
Example: My balance at the beginning of the year is $100,000. The investments do well over the year, and at the end of the year the balance is $110,000. For my drawdown rate percentage of 5%, during that year (as a single or multiple draws in total), I have to draw down (minimum) $5,000. Is this correct?
For the next year, the starting balance would be $105,000 ($110,000-$5,000), so the required drawdown would be 5% * $105,000 = $5,250 (assuming rate is still 5%). Is this correct?
Thank you
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