Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
FireCalc and SS numbers don't add up
Old 02-11-2016, 10:34 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,708
FireCalc and SS numbers don't add up

Frequenters of this forum will know how skewed my mathematical capacities are, so I just about know I'm off the rails somewhere, but here goes and apologies in advance for once again being a dumba$$.

This may have been covered somewhere but I was unable to find it quickly.

I was goofing with FC this morning and here's what I came up with.

I entered my data including a future date for my and DW's SS. Came out with a portfolio Spending Level of 5.5%. I calculated that 5.5% against my portfolio balance (not counting SS) and yes, 5.5% was the amount.

So then I wanted to see what my Spending Level would be from portfolio withdrawals alone and removed our SS. FC returned a 3.8% Spending Level which again matched my portfolio balance. Yes, the amount was lower by the two SS amounts.

So am I correct that FC includes SS as part of the portfolio spending percentage in it's report even when it is not making the calculation against the actual portfolio balance?
__________________

__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko 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!

Old 02-11-2016, 05:42 PM   #2
Administrator
Gumby's Avatar
 
Join Date: Apr 2006
Posts: 10,155
I am certainly no FIRECalc guru, but it is my understanding that the total spending in dollars that you input on the first page (or the spending allowed for a certain percentage success rate - when you choose that output option) will include social security and any pension income that you input in the second page. And then the percentage of all that spending is calculated against initial portfolio value. I ignore that percentage. The key fact is the actual dollar spending.

Try adding in a pension with inflation adjustment on page 2 that is equal to your expected social security and you should see the same result.
__________________

__________________
Living an analog life in the Digital Age.
Gumby is online now   Reply With Quote
Old 02-11-2016, 06:08 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2011
Posts: 3,708
Quote:
Originally Posted by Gumby View Post
And then the percentage of all that spending is calculated against initial portfolio value. .
Thanks Gumby. That's what I figured as well, but sometimes I have trouble conceptualizing things involving numbers (not the numbers themselves) that I begin to doubt myself.

I actually once had a performance appraisal that said "...it is hard to comprehend how someone who's so otherwise gifted can have such a blind spot in this regard...".
As an executive, I was the only one who had a full time accountant on my staff just to keep me out of trouble.
__________________
Living well is the best revenge!
Retired @ 52 in 2005
marko 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
14 million people who don't show up in most of the numbers mickeyd Health and Early Retirement 47 03-28-2013 08:51 PM
Does FIRECalc take into account SS numbers I put in? fh2000 FIRE and Money 3 08-27-2010 12:48 AM
Don't get burned chasing hot numbers FunGoals FIRE and Money 5 01-26-2005 06:24 PM
Add Int'l equities to FireCalc = increased SWR's? Cb FIRE and Money 2 02-26-2004 03:36 AM

 

 
All times are GMT -6. The time now is 04:47 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.