Originally Posted by W2R
My sympathies - - that is really complicated!! It would drive me nuts.
I have ONE of the same problems, with SS not kicking in until 6 months into retirement. Even worse, I really want to wait until 66 to claim SS so that would be 54 months. My approach to that will be to set aside (mentally) the amount of money corresponding to those 54 SS payments, and regard it as "spent". Then I would take the 3% or 3.5% of the remainder.
Actually, it's not that bad at all to plan. While I use all the current forecast tools (i.e. FireCalc, F.E., RIP, etc.) for planning and all give similar results over the long term, I perfer using RIP (Fidelity's Retirement Income Planner) which gives a year by year breakdown of income, taxes, RMD's, etc, along with my detailed line item budget as input, and various increases/decreases along the way. For example, we do travel quite extensively (before and after retirement), but I did put in anticipated reduction of costs along the way (adjusted each decade) as we age. OTOH, the RIP tool is set to adjust costs related to health care (e.g. preimums, co-pay's, etc.) at a 7% rate, beyond the normal reported inflation rate.
It's a bit easier than just using a spreadsheet (even though I also use those
) along with one of the other tools.
Like I said, we don't have all our income available on day one of retirement (as for my DW, nobody knows when that will be
). However, we do know the current $$ of pending income sources (5 additional one's) over the next eight years, so we can do a pertty good "gestimate" of where we will be, along our journey.
Hey, I did the expense/income excercise way before I retired, so it's no big thing. If anything, the last 2.5+ years of retirement has proven that my "method" is sound, and I feel comfortable with my forecast for our future...