Firecalc and time-limited income

[siamond]

Firecalc is a fantastic tool, but I fail to understand how to model an early semi-retirement situation...

I plan to retire in 2015, I'll be 53 by then. I plan to work part-time for a given duration (say 5 years for the sake of argument), and make a given income thanks to that. Then I'll stop for good. And I don't plan to start using social-security until I am older.

Any way to model this 5-year-long incremental income?

 

[golfnut]

Hit the "other income" tab on top. On the bottom of the screen, under "pension income" insert amount and start year. Then below, hit "off chart spending, insert same amount and start year which is 5 years later than the "pension income" start date in your case.

 

[siamond]

Hit the "other income" tab on top. On the bottom of the screen, under "pension income" insert amount and start year. Then below, hit "off chart spending, insert same amount and start year which is 5 years later than the "pension income" start date in your case.

Aaahhh.... Why didn't I think of that... Of course! THANK YOU!

 

[ziggy29]

Hit the "other income" tab on top. On the bottom of the screen, under "pension income" insert amount and start year. Then below, hit "off chart spending, insert same amount and start year which is 5 years later than the "pension income" start date in your case.

I recently had to model something similar. This indeed works, as does also entering another negative pension amount in the future to reflect to reduced income.

For example, if you have an ER pension where you get $3000 a month until age 62 (when you can receive SS) and then $2000 afterward, you can enter a $3000 pension starting in the year you first take it, and then add a pension of *negative* $1000 starting in the year you turn 62.

Two different paths, same destination -- additional spending or a "negative" future pension. Whichever makes the most sense to you would be fine here.