I'm still trying to learn how to use the FireCalc tool and would greatly appreciate it if anyone with more experience could double check my assumptions/input.
What I want to do is get an idea of how much my wife and I would need to earn if we decided to stop working full-time in the very near future and continue to work part-time for several more years. To try to calculate this, I have entered the following into FireCalc:
* Retirement length = 60 years (I'm 42 and my wife is 40)
* Spending = $40,000
* Portfolio = $150,000
* Retirement date = 2013 and input that we would save 25K/year until then
Other Income/Spending:
* 12K/yr SS for me in 2029
* 12K/yr SS for wife in 2032
* Off chart spending reduction of $50K/yr starting in 2013
* Off chart spending increase of $50K/yr starting in 2025
So, we currently make about $100K/yr but what I want to determine is, if we reduced that by half then fully retired in 2025 would our portfolio last. With these numbers, I'm getting a 95% success rate, but I'm not convinced I'm using the tool correctly.
Appreciate the insight of those far wiser than myself.
What I want to do is get an idea of how much my wife and I would need to earn if we decided to stop working full-time in the very near future and continue to work part-time for several more years. To try to calculate this, I have entered the following into FireCalc:
* Retirement length = 60 years (I'm 42 and my wife is 40)
* Spending = $40,000
* Portfolio = $150,000
* Retirement date = 2013 and input that we would save 25K/year until then
Other Income/Spending:
* 12K/yr SS for me in 2029
* 12K/yr SS for wife in 2032
* Off chart spending reduction of $50K/yr starting in 2013
* Off chart spending increase of $50K/yr starting in 2025
So, we currently make about $100K/yr but what I want to determine is, if we reduced that by half then fully retired in 2025 would our portfolio last. With these numbers, I'm getting a 95% success rate, but I'm not convinced I'm using the tool correctly.
Appreciate the insight of those far wiser than myself.