Join Early Retirement Today
Thread Tools Search this Thread Display Modes
RIP - first year savings balance reduction
Old 07-18-2016, 01:30 PM   #1
Confused about dryer sheets
Join Date: Jul 2016
Posts: 2
RIP - first year savings balance reduction

I've been working with RIP and their retirement reports for a while now. One thing I have noticed in the "Detailed Income Analysis" section of the report is the large, unaccounted for, balance reduction after the first year. It's about 15% of the "beginning savings" amount with no detailed explanation of why and how much. The other columns in the table offer no reconciliating numbers.

I seem to remember before they changed the tool in 2015 there was an brief note "we have experienced that in the 1st year of retirement, retirees make a large withdrawal." That footnote has since vanished but the deduction remains, or have I missed their explanation.

Does Fidelity's assumption of a large withdrawal ring true with others? Wouldn't it be helpful to see the analysis without the effects of this unexplained deduction? Or be given a more detailed explanation of their methodology?

gypsydavy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-18-2016, 01:39 PM   #2
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,932
worst case scenario seems to figure you getting hit by `15% right out of the gate . this being my first year retired , when we were down i was like how did they know ? ha ha ha

mathjak107 is offline   Reply With Quote
Old 07-18-2016, 02:33 PM   #3
gone traveling
Join Date: Feb 2016
Posts: 34
Yes i see this also , I believe Rip includes multi year down turn at the start, a real stress test.

Sent from my iPhone using Early Retirement Forum
Frankie1926 is offline   Reply With Quote
Old 07-18-2016, 03:11 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,199
Can you "fix" it by increasing assets by 17.6% [117.65*(1-15%)=100]?
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is online now   Reply With Quote
Old 07-18-2016, 04:06 PM   #5
Recycles dryer sheets
Join Date: Apr 2013
Location: Fishers
Posts: 242
I just checked my RIP numbers and looked at the Detailed Income Analysis. ending balance is about 1% less than simple beginning balance - expenses = ending balance. It appears that in an under performing market FIDO assumes a slightly negative return on investments in the first year.
wmc1000 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
First year of FIRE: did your taxes from the year before shock you? BBQ-Nut FIRE and Money 20 09-30-2014 01:05 PM
Good year for equities, time to re-balance? prototype FIRE and Money 44 11-16-2013 04:44 PM
debt reduction v. savings, recent graduate landonew Young Dreamers 39 09-23-2010 11:47 AM
Portfolio end of year balance ldc FIRECalc support 6 07-31-2006 03:39 AM
Any good 0% balance transfers for 1 year offers left? soupcxan FIRE and Money 10 09-25-2005 08:33 PM


All times are GMT -6. The time now is 07:41 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.