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Spending input in FIRECalc
Old 05-21-2016, 10:02 AM   #1
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Spending input in FIRECalc

When you input your projected annual spending in FIRECalc, is that amount after tax?

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Old 05-21-2016, 10:21 AM   #2
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Originally Posted by ready53 View Post
When you input your projected annual spending in FIRECalc, is that amount after tax?
Nope. FireCalc does not factor in taxes, you have to estimate tax impact yourself. IOW you have to allow for taxes in your spending along with everything else.

There are too many variables to build in taxes, especially for 20-40 year planning periods, and you'd have to be able to predict future tax rates/thresholds/deductions - no one could possibly do it.

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Old 05-21-2016, 10:42 AM   #3
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What Midpack said. The spending is "all in"... so it should include taxes, health insurance, everything. It should be the total! Then you can enter income streams (pensions, SS) on another tab.

All inputs are gross, not net.
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Old 05-21-2016, 12:19 PM   #4
Dryer sheet wannabe
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Thanks Midpack and rodi for your replies. Shouldn't that be clearly stated where one enters "Spending" in the "Start Here" box? Usually when I think of spending I don't put income taxes in that category. I do put property taxes and sales taxes there, but not income taxes.
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