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Firecalcs Inflation Methods
Old 04-01-2013, 06:07 PM   #1
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Firecalcs Inflation Methods

I understand CPI, but if you use a personally selected % for inflation does Firecalc use the assumed CPI for lets say SS and then withdraw from your portfolio to make up the difference? And how does it handle other Retirement Income that you input into the calculator?
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Old 04-01-2013, 06:40 PM   #2
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Quote:
Originally Posted by Semiretired2008 View Post
I understand CPI, but if you use a personally selected % for inflation does Firecalc use the assumed CPI for lets say SS and then withdraw from your portfolio to make up the difference? And how does it handle other Retirement Income that you input into the calculator?
I'm reasonably sure Firecalc uses whatever inflation rate you select for both SS and other Retirement Income.

To check this, maybe do some test runs with a varying inflation rates using 30,000 annual spend, a 10,000 portfolio and 30,000 in SS beginning this year. Then do the same with 0 SS and 30,000 in pension starting this year (be sure to check the inflation adjust box).

The results graphs showing the ending values of your $10k portfolio should give you a good indication of how inflation was handled.
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Old 04-01-2013, 06:49 PM   #3
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Thanks - I can do that...

I ask this because I took the time to add to my personal calculator a function to show me what my funds were supporting and I was shock when I saw how much over time was being used to support keeping SS and my Retirement Income at the desired inflation level I had inputted. I guess I could always use this as a reduction method for spending to stretch my portfolio if needed in the future...
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