Firecalc question

[kmoeini]

This is my AA:

25% Vanguard Intermediate Term Tax Exempt
35% Total Stock Market
20% Small Cap Value Index
15% FTSE All-World Ex US
5% Emerging Markets

Should I make any adjustments to the default settings of firecalc when planning my withdrawal rate? I noticed an option for mixed portfolios in the settings, but there was no international fund option, for example.

Thanks in advance for your help.

Kevin

 

[REWahoo]

Should I make any adjustments to the default settings of firecalc when planning my withdrawal rate? I noticed an option for mixed portfolios in the settings, but there was no international fund option, for example.

Since the purpose of FIRECalc is to test the historical survival rate of your portfolio, you should input the AA you expect to have in the withdrawal phase, or as close as possible within the choices FIRECalc makes available.

According to Dory36, who developed FIRECalc, sufficient historical information on international equity performance was not available and is not included in the program.

 

[kmoeini]

Thanks REWahoo. That makes sense.