Deferred Compensation Bridge Planner

Estimate how many months deferred compensation installments can sustain your lifestyle by combining payout cadence, low-risk yield, and bridge income so you know exactly when to accept your next offer or adjust spending.

Total nonqualified deferred compensation scheduled to distribute in the current plan year.
Number of monthly installments elected for this distribution year.
Core living costs you expect to cover while between roles.
Annualized yield on funds parked in low-volatility vehicles during the bridge period.
Default 0. Enter side-hustle or consulting income that offsets monthly spending if known.
Default 0. Include severance, RSU proceeds, or cash on hand to start the bridge period.

For educational planning only. Coordinate final decisions with your tax advisor and plan administrator to respect 409A elections.

Examples

  • Balance $240,000, 12-month payout, $14,500 monthly spend, 3% return ⇒ Runway 16.69 months, $5,500 monthly surplus, and $9,980.68 left when the bridge ends.
  • Balance $420,000, 24-month payout, $11,000 monthly spend, 4% return, $2,000 side income, $35,000 reserves ⇒ Runway 53.44 months and ending reserve $4,808.31.

FAQ

Does the planner include payroll tax withholding on distributions?

Not automatically. Enter after-tax balances or reduce the distribution input to reflect expected withholding so the runway mirrors cash you can actually spend.

How can I add severance or RSU cash that arrives mid-year?

Use the optional starting cash reserve for lump sums already on hand, and include expected part-time consulting income in the supplemental monthly income field.

What if I plan to ratchet down spending after a few months?

Run the calculator twice with different spending levels to see how frugality extends the runway. The comparison highlights how much time lifestyle cuts can buy.

Can negative returns be modeled?

Yes. Enter a negative return percentage to stress-test drawdowns on conservative holdings and see how much it shortens the bridge period.

How does this help coordinate with severance and unemployment benefits?

Layer guaranteed severance or unemployment checks into the supplemental income field so the runway estimate aligns with every cash source you expect during the transition.

Additional Information

  • Monthly installments are assumed to land at the start of each month before investment growth and spending occur.
  • Annual return is converted to an effective monthly rate using geometric compounding for more accurate runway math.
  • Optional supplemental income and starting reserves are treated as additional cash that enters the bridge plan each month.
  • Runway is capped at 600 months (50 years) to avoid infinite horizons when cash flow remains positive indefinitely.
  • Model assumes level monthly spending; rerun scenarios with trimmed budgets to understand how fast you can extend coverage.

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