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FireCalc Inputs
Old 02-05-2019, 06:30 AM   #1
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FireCalc Inputs

Good Day
I have been on this site for some time now have commented on several areas. I have also been impressed on how many young people have such a large wealth factor. :-)
So, As the DW and I ponder retirement in 2020 I have put my number in Firecalc as such and am wondering if the facts are what it says or am I doing something incorrect?
Tabs:
-Spending 115K Portfolio 650K Years 34
-Income/spending: Pensions: 81K (total pensions)starting 2020. SS total
is 30K (spouse 2020 and mine 2022).
-Portfolio Changes: We will take out 75K from 2022-2025 for various
things.
-Investigate: Told them that I wanted to leave 300K in account always (inheritance for kids).

So with that said, FireCalc came back with a 100% success rate. Is this possible for the 650K input? I have other assets but keeping that separate.
\Thanks
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Old 02-05-2019, 06:37 AM   #2
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Seems like the combination of pensions and Social Security is covering nearly all of your expenses. It doesn't appear that you will need to take much from your portfolio to cover your annual spending, so yes it is possible.
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Old 02-05-2019, 07:01 AM   #3
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Very nice pension. We could live on that without taking anything from portfolio.
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Old 02-05-2019, 07:13 AM   #4
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Don't forget to run the numbers considering that one of you may go first. Turning into a single person household means the loss of one pension, one SS, different taxation and different spending.
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Old 02-05-2019, 07:19 AM   #5
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Originally Posted by Rianne View Post
Very nice pension. We could live on that without taking anything from portfolio.


Thank you. I am 59 in 2020 and DW is 65 so with the combination of military pension/wife’s pension and my small gov pension, and of course SS. Medical not an issue with retired mil and DW will start Medicare.
I can only assume that taxes will have to come out of that?
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Old 02-05-2019, 07:23 AM   #6
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Quote:
Originally Posted by cnocmmz View Post
Good Day
I have been on this site for some time now have commented on several areas. I have also been impressed on how many young people have such a large wealth factor. :-)
So, As the DW and I ponder retirement in 2020 I have put my number in Firecalc as such and am wondering if the facts are what it says or am I doing something incorrect?
Tabs:
-Spending 115K Portfolio 650K Years 34
-Income/spending: Pensions: 81K (total pensions)starting 2020. SS total
is 30K (spouse 2020 and mine 2022).
-Portfolio Changes: We will take out 75K from 2022-2025 for various
things.
-Investigate: Told them that I wanted to leave 300K in account always (inheritance for kids).

So with that said, FireCalc came back with a 100% success rate. Is this possible for the 650K input? I have other assets but keeping that separate.
\Thanks
Yes, that seems very possible. Once your pension and SS start your gap is $4k/year. Your pension and SS start in a little over a year or 2... so carve out $230k to replace that income between now and then... less $75k for various things leaves $345k... $4k of withdrawals on $345k is a little over a 1% WR and portfolio returns should easily be able to cover those.

Also, as braumeister suggests, also run your numbers if your or your spouse were to pass tomorrow because things change alot for a single compared to a couple... one SS benefit goes away and possibly a pension depending on what pension option that you chose.
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Old 02-05-2019, 07:26 AM   #7
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Originally Posted by braumeister View Post
Don't forget to run the numbers considering that one of you may go first. Turning into a single person household means the loss of one pension, one SS, different taxation and different spending.


Yes, good point. May have to move or downsize at that juncture.
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Old 02-05-2019, 07:27 AM   #8
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Mathematically it does indeed sound good.
As an aside, are your pensions COLA'd and did you input them with the inflation box checked?
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Old 02-05-2019, 07:54 AM   #9
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Yes, that seems very possible. Once your pension and SS start your gap is $4k/year. Your pension and SS start in a little over a year or 2... so carve out $230k to replace that income between now and then... less $75k for various things leaves $345k... $4k of withdrawals on $345k is a little over a 1% WR and portfolio returns should easily be able to cover those.

Also, as braumeister suggests, also run your numbers if your or your spouse were to pass tomorrow because things change alot for a single compared to a couple... one SS benefit goes away and possibly a pension depending on what pension option that you chose.


I guess I could wait to collect mine at 67
?
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Old 02-05-2019, 08:38 AM   #10
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Mathematically it does indeed sound good.
As an aside, are your pensions COLA'd and did you input them with the inflation box checked?
Yes Cola'd and checked thanks. Just got to figure out the taxes on the 115K for the actual annual net since FireCalc cannot apply that?
Thanks
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Old 02-05-2019, 09:35 AM   #11
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You need to include and estimate of taxes in spending in FIRECalc.
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Old 02-05-2019, 10:37 AM   #12
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Did not know that there was a block for taxes?
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Old 02-05-2019, 10:47 AM   #13
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Taxes are something you spend money on, just like anything else. Include them in your estimated spending amount.
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Old 02-05-2019, 11:15 AM   #14
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Did not know that there was a block for taxes?

There is no block for taxes.... if you need $40k before taxes for living expenses and taxes are $5k then you input $45k for spending on the first tab.
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Old 02-05-2019, 12:12 PM   #15
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Some calculators like Fidelity effectively calculate your taxes for you.
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Old 02-05-2019, 03:59 PM   #16
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Make sure you check whether you will get hit with government pension offset, and or the windfall elemination provision if your going to get a government pension. It can greatly decrease your social security amount.
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Old 02-05-2019, 05:00 PM   #17
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Make sure you check whether you will get hit with government pension offset, and or the windfall elemination provision if your going to get a government pension. It can greatly decrease your social security amount.


No offset...Thanks
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