Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Need Help Entering Basic Data to Firecalc Please
Old 05-06-2016, 10:50 PM   #1
Recycles dryer sheets
gamboolman's Avatar
 
Join Date: Sep 2012
Location: Spring, Texas
Posts: 483
Need Help Entering Basic Data to Firecalc Please

My wife and I need some help please with some basic questions for FireCalc.

I did try to search for my question but was not able to find an answer.

I am age 57 and the wife is 55
I am planning to retire age 60. The better half does not work.
Pension $72K , no COLA. Will start to receive 2020 upon retirement.

I am Planning to wait until age 67 to take Social Security, ~$36K per year
Wife will take ½ spousal Social Security two years later when she turns 67, ~$18K per year.

Our estimated Annual Gross expenses is ~$125K per year.
For simplicity – our questions do not include gains from saving accounts.

$125K - $72K = $48K

Therefore planning to pull ~$48K from our savings prior to Social Security kicking in. For the period from age 60 to 67 – I have been using $48K for Annual expenses entered in Fire Calc. Is this correct?

Showing Social Security starting in 2027 with $36K, and in 2029 with an additional $18K for my wife.

Our question is regarding how FirecCalc handles adjusting annual expenses as Social Security kicks in

For age 67 to 69

Since our savings account withdrawal rate will reduce once Social Security kicks in – it would seem to me that
$125K - $72K - $36K = $12K
Meaning we only need to pull ~$12K from savings annually?

Then in 2029 when the wife starts to get ½ my Social Securtiy
$125K - $72K - $36K -$18K = <$6K>
Meaning we would not need to take any money from our savings account when my wife starts to take Social Security

So it looks to us like our annual expenses reduce to ~$12K in 2027 thru 2029 and starting in 2029 we would not have to pull any monies out of savings?

I can’t figure out to show reduction in annual expenses in Firecalc? Or does Firecalc do this automatically?

Thank you for any advice and assistance you can provide to us.
gamboolman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-07-2016, 04:28 AM   #2
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,586
Quote:
Originally Posted by gamboolman View Post
My wife and I need some help please with some basic questions for FireCalc.

I did try to search for my question but was not able to find an answer.

I am age 57 and the wife is 55
I am planning to retire age 60. The better half does not work.
Pension $72K , no COLA. Will start to receive 2020 upon retirement.

I am Planning to wait until age 67 to take Social Security, ~$36K per year
Wife will take ½ spousal Social Security two years later when she turns 67, ~$18K per year.

Our estimated Annual Gross expenses is ~$125K per year.
For simplicity – our questions do not include gains from saving accounts.

$125K - $72K = $48K

Therefore planning to pull ~$48K from our savings prior to Social Security kicking in. For the period from age 60 to 67 – I have been using $48K for Annual expenses entered in Fire Calc. Is this correct?

Showing Social Security starting in 2027 with $36K, and in 2029 with an additional $18K for my wife.

Our question is regarding how FirecCalc handles adjusting annual expenses as Social Security kicks in

For age 67 to 69

Since our savings account withdrawal rate will reduce once Social Security kicks in – it would seem to me that
$125K - $72K - $36K = $12K
Meaning we only need to pull ~$12K from savings annually?

Then in 2029 when the wife starts to get ½ my Social Securtiy
$125K - $72K - $36K -$18K = <$6K>
Meaning we would not need to take any money from our savings account when my wife starts to take Social Security

So it looks to us like our annual expenses reduce to ~$12K in 2027 thru 2029 and starting in 2029 we would not have to pull any monies out of savings?

I can’t figure out to show reduction in annual expenses in Firecalc? Or does Firecalc do this automatically?

Thank you for any advice and assistance you can provide to us.
FIRECalc does all this automatically. I would enter all the data - the expenses of $125k, the pension, the SS amounts and start dates for each of you, and the total savings you have. Then let FIRECalc figure it out.
MichaelB is online now   Reply With Quote
Old 05-07-2016, 07:35 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,266
+1 Firecalc calculates your "gap" for each year (expenses less all sources of income) and that is the withdrawal for that year so make your spending $125k.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56
pb4uski is offline   Reply With Quote
Old 05-07-2016, 09:54 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2008
Posts: 5,178
Just to add, for firecalc spending on the first page, you need to include taxes owed.


Sent from my iPad using Early Retirement Forum
tmm99 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Firecalc - Entering Portfolio Info hopeisnotaplan FIRECalc support 2 02-25-2016 01:47 PM
Question about entering data engr FIRECalc support 1 07-15-2013 04:45 AM
Question about entering portfolio into firecalc Keim FIRE and Money 4 02-02-2011 12:15 PM
Need Help with FIRECALC-Please!!! Retire2013 FIRECalc support 2 08-16-2010 01:32 PM
Need some Quicken Help - Entering a CD Cut-Throat Other topics 12 01-09-2005 11:47 AM

» Quick Links

 
All times are GMT -6. The time now is 05:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.