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FIRECalc when one spouse still works
Old 02-15-2013, 02:21 PM   #1
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FIRECalc when one spouse still works

I'm tentatively shooting for "Class of 2016" status now that my wife is more secure in a career she plans to keep for a while. What I'm trying to do is figure out a way to enter data in FIRECalc that still includes her working income after my entered retirement date of 2016.

The only way I can think of (and not sure it's accurate) is this: Let's say she retires from this job in 2030, and let's assume her income will be $35,000 in current dollars. On the "Other Income/Spending" section, I entered a "pension" of $35,000 starting in 2013, and then below it entered "off chart spending" of $35,000 starting in 2030. The net result, I think, is that after 2030 the two offset each other and zero out. (Alternatively, it could have been an additional pension of *negative* $35,000 starting in 2030, I think it's the same either way.)

Anyone done this? Is that the appropriate way to get accurate results (he hopes, since it gives a 100% chance of success)....
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Old 02-15-2013, 02:37 PM   #2
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Zig, that's exactly how I would do it, and be sure to keep the "inflation adj?" boxes checked on both entries. That should capture what you'd hope would be an annual raise to keep up with inflation, then an equal spending amount to offset the income loss once she retires in 2030.
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Old 02-15-2013, 02:42 PM   #3
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Zig, that's exactly how I would do it, and be sure to keep the "inflation adj?" boxes checked on both entries. That should capture what you'd hope would be an annual raise to keep up with inflation, then an equal spending amount to offset the income loss once she retires in 2030.
Thanks, I did have the inflation adjustment checked on both of those entries but not on my puny frozen old Megacorp pension, so I think I have it all down right.

And that's good; it shows a 92% success rate with retirement in 2013, 97% in 2014, 99% in 2015 and 100% in 2016 and beyond. So I think "Class of 2016" sounds about right.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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Old 02-15-2013, 02:51 PM   #4
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I still work part-time and DH has retired but I still run Firecalc each year as projections get more firm. We don't have level spending over the next several years so I use the manual spending. I put in the manual spending for the next several years (until it levels off), then I go through and I deduct from manual spending each year the net (after taxes) for my income.
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Old 02-15-2013, 02:58 PM   #5
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And that's good; it shows a 92% success rate with retirement in 2013, 97% in 2014, 99% in 2015 and 100% in 2016 and beyond. So I think "Class of 2016" sounds about right.
IOW, you're already FI but refuse to believe it...
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Old 02-15-2013, 03:00 PM   #6
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IOW, you're already FI but refuse to believe it...
Are you saying I have "Three More Years Syndrome"?
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

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Old 02-15-2013, 03:02 PM   #7
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Are you saying I have "Three More Years Syndrome"?
Yes!
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Old 02-15-2013, 03:05 PM   #8
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Are you saying I have "Three More Years Syndrome"?
Either that or fear of being accused of "keptomania".
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Old 02-15-2013, 03:06 PM   #9
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Are you saying I have "Three More Years Syndrome"?
Yes, and DW has 17 more years syndrome!
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Old 02-15-2013, 03:30 PM   #10
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Zig, that's exactly how I would do it, and be sure to keep the "inflation adj?" boxes checked on both entries. That should capture what you'd hope would be an annual raise to keep up with inflation, then an equal spending amount to offset the income loss once she retires in 2030.
What is this "annual raise" that you speak of? I vaguely recall and have read of such a thing but I'm not really familiar with how it works.
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Old 02-15-2013, 05:41 PM   #11
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Yes, and DW has 17 more years syndrome!
Well, she did say she hoped to stick with it for "15 or 20 years," so I split the difference. Besides, 2030 is a nice round number and it's also when I turn 65 and get my full (but puny) old Megacorp pension.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
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