Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Delayed retirement and Firecalc
Old 06-21-2006, 11:14 AM   #1
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Delayed retirement and Firecalc

If I enter current expenses in FireCalc, but tell it to put off retirement for 5 years does it inflation-adjust those expenses for the starting line 5 years hence? Or does it assume that those are the expenses I'd like to use when retirement start 5 years from now?
__________________

__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay 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 Early-Retirement.org 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!

Re: Delayed retirement and Firecalc
Old 06-21-2006, 11:23 AM   #2
Early-Retirement.org Founder
Developer of FIRECalc
dory36's Avatar
 
Join Date: Jun 2002
Posts: 1,826
Re: Delayed retirement and Firecalc

It inflation adjusts whatever you put in. So the first year withdrawal will be bigger than what you enter by the amount of inflation.
__________________

__________________
Often uninformed, seldom undecided.

Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain
dory36 is offline   Reply With Quote
Re: Delayed retirement and Firecalc
Old 06-21-2006, 11:42 AM   #3
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Delayed retirement and Firecalc

Quote:
Originally Posted by dory36
It inflation adjusts whatever you put in. So the first year withdrawal will be bigger than what you enter by the amount of inflation.
Great, thanks. I was really feeling poor there for a minute.

Other quandry: my first 3-4 years of FIRE will be based on after-tax savings. Then I switch to tax-sheltered funds and thus need to kick them up so I end up whole after taxes.

I'm handling by entering an "increase in withdrawals starting in ..." to mimic this, adjusting for inflation. Sound sound?
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Re: Delayed retirement and Firecalc
Old 06-21-2006, 01:02 PM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,123
Re: Delayed retirement and Firecalc

Quote:
Originally Posted by Rich_in_Tampa
Sound sound?
Yes yes. I did (and am doing) the same.

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Delayed retirement and Firecalc
Old 07-01-2006, 07:00 AM   #5
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Re: Delayed retirement and Firecalc

I had the same problem. My mortgage (yes I have one) doesn't need to inflate. I figured it out and put it in as an "increased withdrawl" without inflation. I'm keeping the mortgage because I have way too much inside my IRA. The tax savings (deduction plus less taxable income for 6 years) overwhelm the benefit of paying off the mortgage (I think). I do flip-flop over this.

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Reply


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
500 search phrases for 2006 dory36 Other topics 2 01-16-2007 08:00 AM
I thought I'd post a Picture of my Wife naked..... TromboneAl Life after FIRE 13 10-19-2005 10:14 AM
FireCalc, inflation rate, expat retirement oaxaca FIRE and Money 1 06-19-2005 12:14 AM
How people find us... asian carp?? dory36 Forum Admin 4 05-27-2005 01:07 PM

 

 
All times are GMT -6. The time now is 11:05 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.