Originally Posted by engr
Assume all before tax info has been entered into Firecal and a Spending Level has been calculated. Also assume you have a dollar amount estimated for
retirement expenses. After estimating taxes and addng this tax amount to the expense amount a new sum is generated. A ratio of
Spending Level/Sum is made. What is the minimum ratio required for you to feel like you have a sufficient buffer to retire on? For example, a ratio of 1.05 yields a buffer of 5%.
I think this approach may have some challenges, it is a bit like measuring a cube of jello with a micrometer.
The issue, at least for us, would the be flexibility of the Spending Level. I'd want to build a "no kidding bare bones" spending level and a "this is how we want it to be" spending level. If Firecalc gave us a 99% chance of portfolio survival on the "bare bones" spending level and a 90% chance of portfolio survival at the "how we want it to be" spending level, I'd probably be satisfied. But . . . I'd probably still underspend for the first few years just out of an abundance of caution.