H.J. Sims — Data Sources & Methodology

This tool generates retirement income and RMD projections using publicly available government data and established financial formulas. Every calculation is based on official IRS publications and standard bond math — the same sources used by CPAs, financial planners, and retirement attorneys across the country. No estimates, no proprietary black boxes.

How the Projection Is Built

Client Facts Are Entered

The advisor inputs the client's age, portfolio value, annual contribution, expected bond yield, and income needed in retirement. All numbers come directly from the client — nothing is assumed.

Government Tables Are Applied

The IRS Uniform Lifetime Table assigns a life expectancy factor to each age. That factor divides the portfolio value to calculate exactly what the IRS requires to be distributed each year.

Year-by-Year Results Generated

The tool calculates bond income, the RMD obligation, any surplus available to reinvest, and the corpus balance — for every year from today through age 95.

Real-World Example — What the Tool Shows

Actual Client Scenario — Age 80

Bond income exceeds the IRS requirement — corpus is growing at 80.

Portfolio Value

$1,860,000

Annual Bond Income

$150,000

IRS RMD Required

$92,079

Surplus Reinvested
+$57,921

IRS factor at age 80 = 20.2 | RMD = $1,860,000 ÷ 20.2 = $92,079 | Bond income at ~8% yield = $150,000 | Corpus is intact and growing — not shrinking.

The Three Projection Phases

Phase 1 — Accumulation

From today until the client retires. Annual contributions are added, bond income is reinvested, and the portfolio grows year over year.

Portfolio + Contribution + Bond Income → Next Year

Phase 2 — Distribution

After retirement, before RMDs begin. No more contributions. Bond income covers living expenses. Corpus is preserved if income is sufficient.

Portfolio + Bond Income − Living Expenses → Next Year

Phase 3 — RMD Active

Once RMDs begin, the IRS mandates a minimum withdrawal each year. Any surplus above the RMD is reinvested. A shortfall draws from corpus.

Portfolio + (Bond Income − RMD) → Next Year

Official Data Sources

🏛️

IRS Uniform Lifetime Table — Required Minimum Distribution Factors

Internal Revenue Service (IRS) — U.S. Department of the Treasury

The cornerstone of every RMD calculation. The IRS publishes a life expectancy table assigning a factor to each age. Dividing the prior year-end account balance by that factor gives the minimum that must be withdrawn. This is the same table every CPA and tax advisor uses to calculate client RMDs.

"The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS's Uniform Lifetime Table." — IRS Publication 590-B

IRS Uniform Lifetime Table — Ages 72–100 (2022 Revision)

Age

Factor

Age

Factor

Age

Factor

27.4

18.5

10.8

26.5

17.7

10.1

25.5

16.8

9.5

24.6

16.0

8.9

23.7

15.2

8.4

22.9

14.4

7.8

22.0

13.7

7.3

21.1

12.9

6.8

20.2

12.2

100+

6.4

19.4

11.5

—

Age 80 factor (20.2) highlighted — used in the real-world example above. Source: IRS Publication 590-B, Appendix B, Table III (2022 revision, effective January 1, 2022).

📜

SECURE 2.0 Act of 2022 — RMD Start Age Rules

U.S. Congress — Signed into law December 29, 2022 (Pub. L. 117-328)

This law updated the age at which Americans must begin taking RMDs. The tool applies the correct start age based on the client's birth year — ensuring every projection reflects current federal law, not the outdated 72-year-old rule that most advisors still default to.

Birth Year	RMD Begins At	Rule
Before 1951	Age 72	Original SECURE Act (2019)
1951–1959	Age 73	SECURE 2.0 Act (effective 2023)
1960 and later	Age 75	SECURE 2.0 Act (effective 2033)

📊

Bond Income Calculation — Standard Fixed Income Math

Industry-Standard Financial Formula

Annual income from a bond portfolio is calculated by multiplying the total portfolio value by its expected yield. This is the same math used by every bond fund, brokerage, and fixed income desk in the industry. The yield is entered by the advisor and reflects the actual bonds in the client's portfolio — not a market estimate.

Annual Bond Income = Portfolio Value × Bond Yield %. Example: $1,500,000 at 5.5% yield = $82,500/year — contractually, as long as bonds are held to maturity and remain in good standing.

Breakeven Yield — What This Tool Calculates That Others Don't

What yield does the bond portfolio need to cover the RMD without touching principal?

Every other retirement tool shows you the RMD and the portfolio balance. This tool goes further: it calculates the minimum bond yield required so that income alone covers the mandatory withdrawal — leaving the corpus completely untouched. If the advisor's yield assumption is above breakeven, the client's principal is safe. If it falls below, the advisor knows exactly how much buffer exists before principal is eroded.

Breakeven Yield = Annual RMD ÷ Portfolio Value → The minimum yield needed to cover the RMD dollar-for-dollar

Why Bond-Centric Matters

Unlike equity-based tools, this projection uses bond income — which is contractually fixed. A bond purchased today maturing in 2040 will return its face value in 2040 and pay its stated coupon along the way. That income is predictable. Equity dividends and capital gains are not. This tool is built for the HJ Sims philosophy: preserve the corpus, live on the income.

What This Tool Does Not Calculate

This illustration does not calculate taxes owed on distributions — that is handled by the client's CPA or tax advisor. It does not account for inflation unless adjusted by the advisor. It does not guarantee future bond performance. All projections are hypothetical illustrations based on inputs provided and should not be construed as investment advice.

Data Sources &Methodology

Where the numbers come from — and why they can be trusted

Data Sources &
Methodology