I have been a bit wondering whether I'm entering the following retirement scenario correctly into FireCalc.
I am 58 and single. In two years (in January 2021), I plan to begin phasing into my retirement by transitioning from a full time employee (40 hr/wk) to part time (29 hr/wk) in my current job.
I'm electing to work part time for two primary reasons -- (1) to pay the bills so that I don't have to touch my retirement funds until I fully retire and (2) to maintain my company's health benefits. I plan to work part time for three years (until January 2024), at which point I'll be eligible for 18 months of Cobra benefits from my company which will carry me until I'm eligible for Medicare benefits at age 65.
* While I'm working full time, I will continue to add $24500 annually to my portfolio up through January 2021. (Once I begin working part time, my income will drop and it will be enough to cover my expenses, but not enough to contribute to my portfolio.)
* My mortgage will be paid off in January 2026. Annual mortgage payments are $25200.
On the Other Income/Spending tab, this is how I've entered the two above spending changes (one as positive, one as negative):
-- Selected "Off Chart Spending", entered $24500, year = 2021, unchecked the "Inflation adj" box.
-- Selected "Off Chart Spending", entered $-25200, year = 2026, unchecked the "Inflation adj" box.
On the Not Retired tab:
-- Entered 2024 as my retirement year, entered $24500 as my annual portfolio contribution.
On the Spending Models tab:
-- Selected "Constant Spending Power".
Is this correct?
If not, how do I enter this scenario into FireCalc? (I am a supporter, so I could make use of the Manual Entry feature on the Spending Models tab if necessary.)
I am 58 and single. In two years (in January 2021), I plan to begin phasing into my retirement by transitioning from a full time employee (40 hr/wk) to part time (29 hr/wk) in my current job.
I'm electing to work part time for two primary reasons -- (1) to pay the bills so that I don't have to touch my retirement funds until I fully retire and (2) to maintain my company's health benefits. I plan to work part time for three years (until January 2024), at which point I'll be eligible for 18 months of Cobra benefits from my company which will carry me until I'm eligible for Medicare benefits at age 65.
* While I'm working full time, I will continue to add $24500 annually to my portfolio up through January 2021. (Once I begin working part time, my income will drop and it will be enough to cover my expenses, but not enough to contribute to my portfolio.)
* My mortgage will be paid off in January 2026. Annual mortgage payments are $25200.
On the Other Income/Spending tab, this is how I've entered the two above spending changes (one as positive, one as negative):
-- Selected "Off Chart Spending", entered $24500, year = 2021, unchecked the "Inflation adj" box.
-- Selected "Off Chart Spending", entered $-25200, year = 2026, unchecked the "Inflation adj" box.
On the Not Retired tab:
-- Entered 2024 as my retirement year, entered $24500 as my annual portfolio contribution.
On the Spending Models tab:
-- Selected "Constant Spending Power".
Is this correct?
If not, how do I enter this scenario into FireCalc? (I am a supporter, so I could make use of the Manual Entry feature on the Spending Models tab if necessary.)
