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annual spending
Old 09-24-2006, 05:32 PM   #1
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annual spending

OK, I'm sure someone has asked this before, but I couldn't find the answer when I did a search.

Under "annual spending", do you put in what you expect to spend every year, or what you expect to spend plus the taxes you'd have to pay on that? ie. if you plan to spend about $40,000 per year, do you put that in, or do you put in $46,000 (assuming 15% tax bracket)?


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(49, married; DH 53. I am fully retired as of 2015 (well ok, I still work part-time but only because I love the job and have complete freedom to call off if I want to travel with hubby for work), DH hopes to fully retire 2018 when he turns 55 to access 401K penalty-free...although he may decide to do part-time consulting)
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Re: annual spending
Old 09-24-2006, 05:34 PM   #2
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Re: annual spending

You put in all your expenses, including estimated taxes.
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Re: annual spending
Old 09-24-2006, 05:35 PM   #3
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Re: annual spending

FIRECalc does not take taxes into account, so what you spend each year needs to include what you plan to spend on taxes. In your example, put in $46,000.

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Re: annual spending
Old 09-24-2006, 06:02 PM   #4
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Re: annual spending

Quote:
Originally Posted by simple girl
Under "annual spending", do you put in what you expect to spend every year, or what you expect to spend plus the taxes you'd have to pay on that?* ie. if you plan to spend about $40,000 per year, do you put that in, or do you put in $46,000 (assuming 15% tax bracket)?
Unless, of course, the money is in savings or other after-tax accounts.*
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