Financial modeling

[RedOscar]

I am curious as to what methods or computer software the members are using to evaluate their early retirement planning.

For me personally, I have primarily relied on Quicken Financial Planner (version which came with Q99 Deluxe Edition), and the Financial Engines web site. These two systems seem to be relatively complete in their ability to incorporate such things as pensions, Social Security benefits, taxable and tax-deferred assets.

I particularly like the way QFP can show you computed expenses, income, and account balances for each year of the model. Probably the biggest drawback is its use of "average annual values" for returns and inflation. Nonetheless, I find this program a great aid in helping me see where I might find myself in 10, 25, 40, or 50 years from now.

So what methods do you all use in your early retirement studies?

Red

 

[TheFIREman]

Excel, mostly. Thanks to intercst and gummy for providing alot of the raw material. I did try porting over gummy's sensible-withdrawals.xls sheet to OpenOffice (just trying to LBMM), but fell down in the home straight

 

[Retiredtwice]

I have used over 20 different tools in the past several years to model my retirement and financial plans. Most are either too simplified or at the other end of the scale unfathomable. I have found that I need tool(s) to look at the retirement plan from three different angles.
1. a way to understand expenses and develop a budget. Just about any of the common products (Quicken, Money, or just an EXCEL spreadsheet) is OK for this. You just have to be disciplined enough (and honest enough) to keep track of where you spend your money.

2. A tool with some level of flexibility to lay out a reasonable cash flow and financial analysis. The absolute best piece of software I have ever found for this (hands down) is the Retirement Planning Analyzer from T. Rowe Price that I bought on line over 2 years ago for less than $8. Unfortunately it is no longer available from them and has not been updated with the latest tax rates, RMD formulas, etc. But even without these updates it still produces excellent, easy to use and understand analysis. Nothing else comes close for ease of use and sophistication.

3. A simulation tool to check survival rates of your investments under different scenarios. There's a number available for free at different Financial web sites (e.g. T. Rowe Price) but a cheap tool that is fairly easy to use and run without being on line (or entering all your financial info at some unknown web site) is Portfolio Survival Simulator at portfoliosurvival.com

That's my two cents

retiredtwice

 

[Retiredtwice]

I have used over 20 different tools in the past several years to model my retirement and financial plans. Most are either too simplified or at the other end of the scale unfathomable. I have found that I need tool(s) to look at the retirement plan from three different angles.
1. a way to understand expenses and develop a budget. Just about any of the common products (Quicken, Money, or just an EXCEL spreadsheet) is OK for this. You just have to be disciplined enough (and honest enough) to keep track of where you spend your money.

2. A tool with some level of flexibility to lay out a reasonable cash flow and financial analysis. The absolute best piece of software I have ever found for this (hands down) is the Retirement Planning Analyzer from T. Rowe Price that I bought on line over 2 years ago for less than $8. Unfortunately it is no longer available from them and has not been updated with the latest tax rates, RMD formulas, etc. But even without these updates it still produces excellent, easy to use and understand analysis. Nothing else comes close for ease of use and sophistication.

3. A simulation tool to check survival rates of your investments under different scenarios. There's a number available for free at different Financial web sites (e.g. T. Rowe Price) but a cheap tool that is fairly easy to use and run without being on line (or entering all your financial info at some unknown web site) is Portfolio Survival Simulator at portfoliosurvival.com

That's my two cents

retiredtwice