FireCalc and a long term receivable
I think I did this right, but don't know.
My wife and I have a very well secured note/mortgage that pays quarterly an amount almost adequate for us to live on. It will be satisfied at the end of 2018, exactly one year before I hit 70 (I'm 62 now, going on 63).
The only way I can figure out how to make it work is to enter the annual $ amount in FireCalc for pension or off chart income and then in 2019, enter an off the chart increase in spending of the same amount. I can't figure out how to just make it account for a 6 year stream of outside payments.
Our current plan is for me to hang it up on April 1, 2013. That's 18 months before I turn 65, so I can use Cobra if need be. It's also about when we want to go away to a second home.
For what its worth, we have 2 homes, no mortgages, lots of equity, about $1,500,000 in retirement savings. When our youngest graduates, we believe it will cost us around $100,000 after taxes to live, but I always use a higher number in FireCalc and the spreadsheets I run. I will max out SS, and it's a pretty hefty number if I can wait until 70-a little over $40,000, according to the government. A year or so later, assuming we're still around, my wife can get $20,000, unless her own benefits are better--we still have to sort that one out. The plan is to stop working next year, live as much as we can on the payments until 2018 and then draw SS and start withdrawing from retirement accounts. Right now, the retirement accounts are generating about $50,000 in cash flow, about 60% of which is non-taxable. When I run my own calculations, I presume the retirement accounts will grow at about 4% over the years, and with most of the cash flow reinvested, it should be well over $2,000,000.
It always works out when I spread sheet it, and the way I did it with FireCalc shows it at 100%, but I'm not sure I'm doing it right in FireCalc.
And in our real world, where we are so used to LBYM, I suspect pretty strongly that our actual expenses will be less than the higher number I use when I calculate them. If that's true, we might end up wishing we had pulled the plug earlier!
So how do I do a FireCalc work around on this?