Fidelity RIP tool

[stepford]

I finally used the new and "improved" RIP tool to do something I'd been meaning to for some time: Construct a table of assets vs. start date of both pension (start age from 55 to 65) and Social Security (starting from 62-70).

Initially I used assets at "end of plan" (age 95 in my case) as my figure of merit. Unsurprisingly assets at 95 are significantly greater the more I delay SS. A bit more interesting was the effect of pension start age - almost nil, with a 1% variation from start ages 55-59 and falling about 5-10% if I delay further out to 65. This is consistent with my earlier "back of the envelope" calculation that I should delay my pension one year and start at 56, but I hadn't realized how weak the dependence was.

Anyway I still miss the old RIP, but playing around with multiple scenarios with the new one is kinda fun.

PS. I'm not relying on RIP as my be all and end all calculator, but when it shows my NW nearly constant to age 95 with a spend rate 50% greater than I project it does give me a bit of a warm and fuzzy feeling of security about jumping ship in a couple of months.

 

[jkern]

I just ran RIP. It looks to be the exact same tool for me. Can anyone explain what's different? Maybe my access is still using the old tool. IDK

 

[MRG]

I just ran RIP. It looks to be the exact same tool for me. Can anyone explain what's different? Maybe my access is still using the old tool. IDK

I did too, but the interface is completely different, not sure it still has the RIP moniker.

My numbers seemed the same but I always ran at 95% so I might be mistaken. Need to spend more time with the new improved* version.

*trying to be optimistic

 

[rodi]

The introductory message states it is an educational tool only, and should not be used for retirement or tax planning purposes. After rereading the tax section in the methodology, I find it even more useless. Tax assumptions, like fees or returns assumptions, affect everything from assumed returns to PF value to RMD's. Taken in totality, how can this be useful? As a guesstimate?

I found some use - in both the original and this version of Fidelity's tool. The use was to test my assumptions, make me think of things in detail.

I've found that pretty much every calculator has some strengths, and some variation of features. By running as many detailed calculators as you can, you are forced to dive into the details of budget/spending, income sources, taxes, one time or variable expenses, etc... Firecalc doesn't address taxes at all, FRIP and Quicken Lifetime Planner do a fixed tax percentage, IORP gives you the opportunity to explore roth conversions and other future tax reduction strategies...

So far - there is no one size fits all... firecalc comes close for me, as long as I guesstimate my taxes accurately and increase my spending accordingly. But FRIP gave me value by allowing the budget details, and changes in budget line items to be addressed. As someone with kids still under roof - that's a big deal. (I have teen boys - I think it's safe to say that my food bill will go down sometime in the future.)

 

[Moneygrubber]

I also noticed my expenses in retirement, which i carefully input and total about 92,300 a year show up as 115 k for the below market run and 123k for the average run. Is this all taxes? Seems high for 34 k pension and 50k divvies and cap gains for married/joint. Much higher than old rip.


Sent from my iPhone using Early Retirement Forum

 

[DEC-1982]

Firecalc doesn't address taxes at all, FRIP and Quicken Lifetime Planner do a fixed tax percentage

Rodi, I am trying to understand this better - "fixed tax percentage".

For FRIP, based on my reading of the methodology, I thought that the tax rate could be 15% one year, 25% another, based on what it thought the income would be.

As an example, if FRIP thought my income for 2015 was less than @94,000 it would use calculations of less than 15%. If FRIP thought my income for 2015 was $100,000 it would use calculations of less than 25%. And all these numbers were best estimates for FRIP of course.

 

[CRLLS]

Did I miss something in the new FRIP? In the old FRIP there used to be various scenarios regarding the possible conversion of some of the assets to a SPIA. I didn't see this on the new FRIP.

 

[NanoSour]

Do you have to be a Fidelity account holder to use RIP? Can't seem to find it on their website. My ER is based on ESPlanner, but would like to compare its results to RIP if able.

 

[stepford]

Do you have to be a Fidelity account holder to use RIP? Can't seem to find it on their website. My ER is based on ESPlanner, but would like to compare its results to RIP if able.

Look under Retirement Planning > Planning & Guidance Center

 

[Alan]

Do you have to be a Fidelity account holder to use RIP? Can't seem to find it on their website. My ER is based on ESPlanner, but would like to compare its results to RIP if able.

Look under Retirement Planning > Planning & Guidance Center

You may have to create a username and password but not need to hold any funds. A username means you can save all your inputs next time you use the tool.

 

[Floridatennisplayer]

The new RIP seems to be very quick in calculating vs the previous version.

I always run at Under performing market and bump up my expenses. Ran several different options. I'm 60 now, did one retiring at 64 and having myself kick the bucket at various ages. Still show 150 scoring.

Makes me feel better. I turn 61 in March....3 more years!!!!!

 

[mathjak107]

fidelity just called to cancel tomorrows meeting we had scheduled with the social security planner . it looks like file and suspend and some other options are going to be history . we will reschedule .

 

[RobLJ]

It first gave me a fail with the 90% below average return setting, but I realized I had entered $500 a month addition to the already generous monthly spending setting and also the investment profile was too conservative. After that, it gave me a 99.

 

[ziggy29]

Currently 122 here, and that is assuming I quit my part time j*b tomorrow. They think I'm a little too conservative with my AA at about 61/39 overall at age 50, but I'm comfortable with being right around the 60/40 mark.

 

[RobLJ]

Currently 122 here, and that is assuming I quit my part time j*b tomorrow. They think I'm a little too conservative with my AA at about 61/39 overall at age 50, but I'm comfortable with being right around the 60/40 mark.

It's now 110; I hadn't flagged the cash accounts for retirement (Other), which are considerable, and they ran the simulation based on the allocation in my account and an older version of DW's that put me at 52% stocks, rather than 63%. Couldn't figure out why it was running the simulation based on a wrong number of assets.
40-50% of spending is discretionary, so there is that also.

 

[eastnortheast]

You may have to create a username and password but not need to hold any funds. A username means you can save all your inputs next time you use the tool.

Hmm. Tried to log in. Asked for last 4 digits of SSN + name + date of birth. I am not a account holder at Fidelity, so it would not let me log in.

Maybe I am doing it wrong, but it appears that maybe now it requires a person to be a Fidelity customer?

By the way - lots of great information and advice on this forum. Thanks!!!

 

[LOL!]

The new Fidelity tool is broken for me. It just spins its wheel and times out. Has this happened to anyone and did they contact Fidelity for a work-around? Thanks!

 

[Slow But Steady]

It's now 110; I hadn't flagged the cash accounts for retirement (Other), which are considerable, and they ran the simulation based on the allocation in my account and an older version of DW's that put me at 52% stocks, rather than 63%. Couldn't figure out why it was running the simulation based on a wrong number of assets.
40-50% of spending is discretionary, so there is that also.

When you say "currently 122" or "it's now 110," what figure are you quoting?

I'm looking at the FRIP through my 401K, and it seems to be the same old one, as someone else mentioned.

 

[Corporateburnout]

The new Fidelity tool is broken for me. It just spins its wheel and times out. Has this happened to anyone and did they contact Fidelity for a work-around? Thanks!

Mine has been working fine. I used it again this morning with no problem.

 

[Corporateburnout]

When you say "currently 122" or "it's now 110," what figure are you quoting?

I'm looking at the FRIP through my 401K, and it seems to be the same old one, as someone else mentioned.

The new version displays a retirement readiness score on the first page but only if you are not retired. Once your status is changed to retired it will display your current and ending portfolio values.

 

[jcretire77]

Slow But Steady, My work net benefits 401K login uses the old tool. My wife logged in yesterday to Fidelity to see her other accounts and has access to the new tool. I expect them to be the same soon, just opinion.

 

[Alan]

Hmm. Tried to log in. Asked for last 4 digits of SSN + name + date of birth. I am not a account holder at Fidelity, so it would not let me log in.

Maybe I am doing it wrong, but it appears that maybe now it requires a person to be a Fidelity customer?

By the way - lots of great information and advice on this forum. Thanks!!!

That must be another change they've made. DW is a customer but I know they did used to allow non-customers to use the old tool.

Oh well....

 

[Slow But Steady]

Thanks for the info.

Maybe I'll be retired by the time they update the 401k to the new planner. I'm getting close.

 

[MRG]

That must be another change they've made. DW is a customer but I know they did used to allow non-customers to use the old tool.

Oh well....

I'm not convinved. Think you always had to have an account configured, if you funded it was a separate issue. I have a funded account but I believe that you can still set one up, never fund it and use any Fidelity tools. Of course I could be wrong.

 

[Alan]

I'm not convinved. Think you always had to have an account configured, if you funded it was a separate issue. I have a funded account but I believe that you can still set one up, never fund it and use any Fidelity tools. Of course I could be wrong.

That is a fine distinction to what I posted but you seem to confirm that you can still use the tool even if you don't have any investments with Fidelity. Simply create an account so you have a username and password.

Thanks for the clarification.