Join Early Retirement Today
Thread Tools Search this Thread Display Modes
different retirement calculator
Old 05-10-2008, 09:48 AM   #1
Confused about dryer sheets
miki's Avatar
Join Date: May 2008
Location: Tel Aviv
Posts: 8
different retirement calculator


I have developed a spreadsheet that takes your (net after SS etc.) monthly expense, total yielding assets, age and life expectancy and return a Yield (%) that you have to achieve on your yielding assets in order to make it to your life expectancy age. Most calculators I have seen assume a historic ROR based on some assets allocation model and (and so does FIREcalc).
Anybody seen a calculator that provides ROR as an answer?
Do U consider it a helpful piece of information?

miki is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-10-2008, 12:25 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
Join Date: Jan 2008
Location: Chicagoland
Posts: 10,663
There are many ways to skin that cat, and yours is as good as any other. I definitely want to enter my rate of return and I know what rates of return I want my spreadsheet to assume (based on my AA and Rick Ferri's projected real returns for the next 30 years).

My spreadsheet takes as inputs: current age, retirement age, end of plan age (when I go poof), inflation, rate of return, current taxable assets, current deferred assets, pension value, my SS and my wife's SS with starting ages, SS reduction (I use 50% of what my statement projects) and all the additional savings while I'm working (taxable, IRA's, 401k, etc.). It also takes a table of 'special expenses' (adjusted for inflation) and the tax tables (adjusted by inflation +1%). I use conservative/pessimistic assumptions throughout. It knows to account for RMD and it then 'solves' for a starting after tax annual expenses (including special expenses) and inflates each year by the assumed inflation. If all goes according to plan I will die broke at 97. But again, many ways to approach this and there is no plan with a high probability of being correct 30-40 years out anyway, I know I'll need to be prepared to adjust for contingencies...

No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 05-10-2008, 02:07 PM   #3
Confused about dryer sheets
miki's Avatar
Join Date: May 2008
Location: Tel Aviv
Posts: 8
Thanks for the detailed answer. It seems you have closed all the windows and locked all the doors but are aware that ms. uncertainty may find a way to snick in anyway. With my model I don't have to assume long term ROR. If the number (currently 4.5% gross) is achievable I sleep well. If not I either adjust my expenses or take more risk this year. If I blow it I adjust next year.
BTW FIREcalc gave me a 67% chance achieving my plan for the next 30 years (my horizon-88) but if I look at the Vanguard probability of living a selected number of years than 88 has a 26% chance for me. So, all in all I have only 8% of reaching 88 w/o a penny to my name (.26x.33) . I will take the risk. No need to adjust spending yet.
miki is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Need a different kind of retirement calculator Blue Skies Hi, I am... 18 10-19-2007 06:34 PM
Retirement calculator Donzo Other topics 15 08-26-2006 02:47 PM
retirement calculator daneosporin FIRE and Money 16 01-10-2006 01:37 PM
T.Rowe Retirement Calculator Spanky FIRE and Money 5 04-13-2005 07:52 PM
The JWR retirement calculator sgeeeee FIRE and Money 18 06-08-2004 10:11 AM


All times are GMT -6. The time now is 01:02 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.