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Firecalc question
Old 05-06-2013, 08:32 PM   #1
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Firecalc question

Am I supposed to include taxes in the "Spending" field? Most of my investments are in taxable accounts and making my annual withdrawal will trigger some taxes.
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Old 05-06-2013, 08:36 PM   #2
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Quote:
Originally Posted by Hamachi View Post
Am I supposed to include taxes in the "Spending" field?
Yes.
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Old 05-06-2013, 08:46 PM   #3
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Originally Posted by Hamachi View Post
Am I supposed to include taxes in the "Spending" field? Most of my investments are in taxable accounts and making my annual withdrawal will trigger some taxes.
where is this field?
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Old 05-06-2013, 09:00 PM   #4
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where is this field?
The spending field is located in the Start Here box:
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Old 05-06-2013, 09:03 PM   #5
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Hamachi you are going to be happy when you start to withdraw funds that your money is in a "taxable" account because the deferred tax accounts all come due in the withdrawal phase and you will be paying ordinary tax rates on the entire withdrawal not just on the capital gains.
Wanaberetiree the total spending amount on the first page should be large enough to cover your living expenses and your taxes.
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Old 05-06-2013, 09:17 PM   #6
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Hamachi you are going to be happy when you start to withdraw funds that your money is in a "taxable" account because the deferred tax accounts all come due in the withdrawal phase and you will be paying ordinary tax rates on the entire withdrawal not just on the capital gains.
Wanaberetiree the total spending amount on the first page should be large enough to cover your living expenses and your taxes.
Thanks everyone. Here's a follow up question. I put a hypothetical portfolio into Firecalc starting with $1,000,000 and $30,000 in spending. (A 3% withdrawal rate.) The portfolio was 50% in stocks and 50% in 5 year bonds. The portfolio succeeded in virtually every case except starting in 1929. What I don't understand is that, starting in 1929, the LOWEST value the portfolio hit in the first 10 years was $672,000. How is that possible, especially given 3% annual withdrawals? Didn't the stock market fall about 90% between 1929 and 1937? I don't imagine 5 year notes were yielding enough to dampen the difference this much. What am I missing?
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