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First time FireCalc User and Confused
Old 11-04-2013, 06:02 PM   #1
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First time FireCalc User and Confused

I understand the overall point of FireCalc but am unsure how to enter the right parameters for my situation.

If I want a 75K income for 25 years in retirement - starting next year... with a portfolio of 1,750,000 -

Is that $75,000 after taxes I'm assuming because I don't see an option for tax rate?

How do I show that 3/4 of that will be in something guaranteed at probably 2% and about 450,000 invested in index funds or retirement targeted funds (4 - 5%?)

Also, if I want to reduce spending by 10% every 10 years, is there a way to do that?

Where or how do I enter that? And are there other important parameters I might be missing?

Can someone help?

Thanks,

Deb
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Old 11-04-2013, 07:52 PM   #2
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Deb:

FIRECalc does not do taxes. You should input your spending at a level that will include the taxes. For example, if your average tax rate is 10% and you want to spend $60k, your should input $66,666 in the spending amount on the first tab.

If you have a guaranteed source of income, put the income amount in the "other income/spending" tab for the year it starts.

Put the 450K on the first tab for portfolio value (if you have it. Use the "not retired?" tab if you are working toward that goal and put what ever you have now in the first tab.).

The only way I know to implement a reduction in spending every year is to use the Bernicke model in the "spending models" tab. It will reduce by 2-3% per year. I don't know how you would do 10%. That seems unrealistic in any event.
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Old 11-04-2013, 09:44 PM   #3
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Thanks, Gumby! That makes sense about the spending/tax included.

I think that we would probably slow down in our 70's and 80's so I wanted to see how that would affect my numbers if we decreased spending by 5% every ten years OR 10% when I hit 80...

I like this FireCalc, just not sure how to really get the portfolio right, especially since I will have a large cash position and the rest bond and index funds.

I'm looking forward to getting the 100% success AND at the yearly income that I really want!

Deb
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Old 11-04-2013, 09:53 PM   #4
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Originally Posted by Debinnov a View Post
Thanks, Gumby! That makes sense about the spending/tax included.

I think that we would probably slow down in our 70's and 80's so I wanted to see how that would affect my numbers if we decreased spending by 5% every ten years OR 10% when I hit 80...

I like this FireCalc, just not sure how to really get the portfolio right, especially since I will have a large cash position and the rest bond and index funds.

I'm looking forward to getting the 100% success AND at the yearly income that I really want!

Deb
I was mistaken. I see you said 10% every 10 years, or about 1% per year. Use the Bernicke spending model and you'll easily cover that.
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Old 11-05-2013, 09:21 AM   #5
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Quote:
Originally Posted by Debinnov a View Post
Thanks, Gumby! That makes sense about the spending/tax included.

I think that we would probably slow down in our 70's and 80's so I wanted to see how that would affect my numbers if we decreased spending by 5% every ten years OR 10% when I hit 80...

I like this FireCalc, just not sure how to really get the portfolio right, especially since I will have a large cash position and the rest bond and index funds.

I'm looking forward to getting the 100% success AND at the yearly income that I really want!

Deb
There's also a way you can vary spending year by year if you like. The cost of becoming a supporter is up to you, there's no $ threshold.
Quote:
Note: FIREcalc supporters can make yearly spending revisions throughout the duration of their plan.
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FireCalc no longer supported?
Old 11-06-2013, 08:03 PM   #6
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FireCalc no longer supported?

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There's also a way you can vary spending year by year if you like. The cost of becoming a supporter is up to you, there's no $ threshold.
Okay, so I made a donation for FireCalc but then five minutes later saw a post saying that FireCalc is no longer supported? Not sure what that means?
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Old 11-06-2013, 09:28 PM   #7
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Originally Posted by Debinnov a View Post
Okay, so I made a donation for FireCalc but then five minutes later saw a post saying that FireCalc is no longer supported? Not sure what that means?
Firecalc was recently updated with current data. There were a few years when that had not been done, and some people interpreted it as the program was no longer supported, but obviously it is.
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Old 11-07-2013, 07:23 AM   #8
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Originally Posted by Debinnov a View Post
Okay, so I made a donation for FireCalc but then five minutes later saw a post saying that FireCalc is no longer supported? Not sure what that means?
Are you able to enter year by year spending?
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Old 11-07-2013, 11:57 AM   #9
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Originally Posted by Debinnov a View Post
Okay, so I made a donation for FireCalc but then five minutes later saw a post saying that FireCalc is no longer supported? Not sure what that means?
I recently made a donation and I was given access to that additional year-by-year spending function. Everything is good to go
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Old 11-07-2013, 04:03 PM   #10
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I, too, just donated and had access to the spending feature.. not of great use to me at this point, but I felt great donating to FireCalc in appreciation for the hard work that went into it and the great usefulness and insight Firecalc provides. I should have donated months ago when I stumbled upon the forum and the calculator.. right thing to do..
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Old 11-07-2013, 06:17 PM   #11
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Being able to do year by year spending is what makes Firecalc useful to me. I love that feature.
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Old 11-07-2013, 08:57 PM   #12
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Okay so I did the donation via paypal but only emails I got were from paypal confirmation. How do I get access to the year by year spending? I wasn't given a password or anything.... did the rest of you get an email with password or something... just started thinking about the fact that I clicked the donate button and paid via paypal but wasn't signed in to anything on firecalc? That could be a problem because how will it know who paid.... OMG am I REALLY a successful business owner? You would never know it! LOL
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Old 11-07-2013, 09:00 PM   #13
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Got it!!!! Sheesh
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Old 11-27-2013, 11:07 PM   #14
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So I paid, but I have not received any login credentials. Just the payment confirmation. Did I miss something?
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Old 11-27-2013, 11:48 PM   #15
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So I paid, but I have not received any login credentials. Just the payment confirmation. Did I miss something?
I think I just just clicked on supporter log in on top right and noticed now under the spending tab at bottom I can change amount needed each year which is great.

Somehow I signed in with my email and it recognized that I had donated?
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Old 11-27-2013, 11:59 PM   #16
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Yeah I tried that with no success. I also tried the forgot password link with no success there either. I will try the support email and see if I can make progress that way.

Thanks!
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