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FIRE Calc and deferred money
Old 06-29-2016, 02:25 PM   #1
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FIRE Calc and deferred money

I have been trying to figure out how to retire for quite a while now and just can't seem to get the confidence that I can. Does anyone know if the FIRE calculator considers tax deferred money in the calculation or know of one that does? I have a fairly large and rapidly growing IRA balance and not a whole lot of post tax money. The money is rolling over to the IRA from an employee stock plan annually. I'm 55 and my wife is also 55 so I'm looking at penalties to touch that money and that has to be figured in somehow. I know about 72t and the age of 55 rule and that could help. Seems like I spend 1/2 the day trying to figure out how to retire and the other 1/2 wishing I would get fired because that would make the decision easier! We're debt free except a new mortgage. Had we not made that move I think I would have gone in October but that changed things a bit so now I'm totally unsure again.
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Old 06-29-2016, 02:33 PM   #2
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FIRECalc does not differentiate between tax deferred and post-tax dollars - to FIRECalc your portfolio is simply a sum of money. You need to consider what taxes you will pay once retired and include them in your annual expense figures as a (tax) expense.
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Enhancement?
Old 11-20-2016, 11:37 AM   #3
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Enhancement?

Quote:
Originally Posted by REWahoo View Post
FIRECalc does not differentiate between tax deferred and post-tax dollars - to FIRECalc your portfolio is simply a sum of money. You need to consider what taxes you will pay once retired and include them in your annual expense figures as a (tax) expense.
Is FireCalc a 'live' product that will be updated in the future, and thus this could go in as a change request:

Have a tax deferred portfolio and you select your tax rate upon withdrawl
Have a taxed portfolio which has no tax rate upon withdrawl
Have a taxed cost basis with the growth taxed at the tax rate above

It "seems" like this wouldn't be difficult given it may be less complex than the already robust code being used? This would make the too REALLY useful for planning!
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Old 11-20-2016, 12:05 PM   #4
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Originally Posted by Gowfster View Post
Is FireCalc a 'live' product that will be updated in the future, and thus this could go in as a change request:

Have a tax deferred portfolio and you select your tax rate upon withdrawl
Have a taxed portfolio which has no tax rate upon withdrawl
Have a taxed cost basis with the growth taxed at the tax rate above

It "seems" like this wouldn't be difficult given it may be less complex than the already robust code being used? This would make the too REALLY useful for planning!
How much would you be willing to pay for the programming?
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Old 11-20-2016, 12:09 PM   #5
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Taxes are highly dependent on your individual situation. I always just gross up for taxes when I input my spending figure.
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Old 11-20-2016, 01:03 PM   #6
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How much would you be willing to pay for the programming?
Infinitely more than I paid for the original version

In more seriousness, I think it is a great tool and I've introduced many friends to it and they all react the same way I did when a friend showed me. I just followed the trail today to see how it was supported and found these forums and have not donated yet, but I think it is worth a donation for sure, and I will.
It does beg the question... what is an expected donation? Like buying an app and its $5, or like buying quicken and its $40? I know, I know... more is always better!
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Old 11-20-2016, 02:28 PM   #7
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How about 0.1% of your portfolio?

Each year you use it?
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