firecalc: dum question

[MJ]

I just want to make sure that my "ass"umptions were correct regarding the "withdrawal change" sections. I searched the forum but didn't seem to find an answer.

As I understand it, the amount entered in the withdrawal change section is in future dollars. I also assume that I would check the inflation adjust dollar box.

If I would reduce my travel expenses in year 10 by $5k in todays dollars, what negative amount would I enter?

I have always gotten 100% success rate.
I got a little nervous when one of the posters was worried about ERing with 2.1mil.

Thanks

[dory36]

Enter -$5000 and click the inflation box. It will adjust the 5000 every year by inflation, then apply the adjusted amount in year 10, and then readjust and reapply in year 11, and so on.

Your 100% may be because you have conservative plans -- or there could be some error somewhere in what you are entering. Or in the program.

Try setting the percentage to 98%, for example, and let it calculate your withdrawal -- if they are way off what you expect, then it will be time to examine the data.

[MJ]

Quote:

Originally Posted by dory36 Enter -$5000 and click the inflation box. It will adjust the 5000 every year by inflation, then apply the adjusted amount in year 10, and then readjust and reapply in year 11, and so on.

Hi dory,
Sorry but I lost you .
Just to clarify, I plan to have a travel budget of $17k and will reduce it to $12k in year 10 and will further reduce it to $8k in year 22.
When I enter -5000, do I start in year 1 or 10?
What did you mean by "apply the adjusted amount in year 10, and then readjust and reapply in year 11, and so on"

Thanks again.

[dory36]

Sorry for the confusion.

You enter -5000 in the box for changes to future withdrawals, and 10 in the year to start the change. Then enter -4000 in the next box and 22 in the year for that change.

The -5000 and -4000 are in today's dollars -- the program will handle the inflation adjustments for you.

[MJ]

Thanks for spelling it out Dory.

I think I need to use some of my free time to get a refresher course on basic English grammar.

It appears the confusion was all mine brought on by a bit of nervousness. I had originally thought that your explanation was the way it was supposed to work but I recently got the idea that I was wrong and that I had to use an inflation adjusted amount.

I am curious what inflation rate are you using?

Regardless, I'm am still doing well, as I still get 100% sucess rate.

MJ

[dory36]

Lower down on the page you'll see an option to use CPI, PPI, or none.

That's what the program uses.

[MJ]

Quote:

Originally Posted by dory36 Lower down on the page you'll see an option to use CPI, PPI, or none.

Hello!

Doing nothing all day is destroying my brain cells