annual spending

simple girl · 09-24-2006, 05:32 PM

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)?

retire@40 · 09-24-2006, 05:34 PM

You put in all your expenses, including estimated taxes.

REWahoo · 09-24-2006, 05:35 PM

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.

Sheryl · 09-24-2006, 06:02 PM

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.*

09-24-2006, 05:32 PM	#1
simple girl Full time employment: Posting here. Join Date: Sep 2006 Location: mississippi Posts: 666	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)? __________________ simple girl less stuff, more time (40, married, no kids, work part-time, DH full-time. Hoping to both semiretire in 5 years...)

09-24-2006, 05:34 PM	#2
retire@40 Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,580	Re: annual spending You put in all your expenses, including estimated taxes. __________________ No man is free who is not master of himself. --- Epictetus Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo

09-24-2006, 05:35 PM	#3
REWahoo Moderator Emeritus Join Date: Jun 2002 Location: Texas Hill Country Posts: 11,507	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. __________________ [MODERATOR EDIT]

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