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Two-stage retirement
Old 07-23-2010, 11:44 AM   #1
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Two-stage retirement

I would like to retire in 2012/3 but DW wants to continue working until she is 60 (2017). So in the first 4/5 years, the amount we need to take out of the portfolio is reduced by the difference between her salary and her pension at 60, which is about $30K/year. What's the best way to represent that in the inputs? I guess it would be nice to be able to have extra income/off-chart spending items with an end date as well as a start date.
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Age 56, retired July 1, 2012; DW is 60 and working for 2 more years. Current portfolio is 2000K split 50 stocks/20 bonds/30 cash. Renting house, no debts.
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Old 07-23-2010, 11:50 AM   #2
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FireCalc and Quicken allow you to inout this type of variance. Depends what you are using for modeling.
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Old 07-23-2010, 11:59 AM   #3
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FireCalc and Quicken allow you to inout this type of variance. Depends what you are using for modeling.
FireCalc (I had thought that was implicit from the forum title, but apparently other s/w is supported in here?!).
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Old 07-23-2010, 12:22 PM   #4
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I would like to retire in 2012/3 but DW wants to continue working until she is 60 (2017). So in the first 4/5 years, the amount we need to take out of the portfolio is reduced by the difference between her salary and her pension at 60, which is about $30K/year. What's the best way to represent that in the inputs?
I may be wrong, but it seems to me you could key in your yearly expenses on the first page, then go to the Portfolio Changes tab and add money.
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Old 07-23-2010, 01:10 PM   #5
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I may be wrong, but it seems to me you could key in your yearly expenses on the first page, then go to the Portfolio Changes tab and add money.
What I really want to be able to do is indicate that from 2013 through 2017, withdrawals from the portfolio will be 30K/year less.

I can represent this amount (150K over 5 years) crudely by having 3 equally-spaced additions of about 45K to the portfolio, but it would be nice to have this extra option. All it would need would be "end" as well as "start" dates for extra spending/income.
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Old 07-23-2010, 02:00 PM   #6
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What I really want to be able to do is indicate that from 2013 through 2017, withdrawals from the portfolio will be 30K/year less.
What you need to do is indicate to FIRECalc that starting in 2018 your withdrawals will increase by $30K/year.

Tell FIRECalc what your actual expected spending will be beginning in 2013. Take a look at the three buttons at the bottom of the page on the "Other Income/Spending" tab. You should be able to accomplish what you are seeking by adding in an "off chart spending" amount of $30K beginning in 2018.
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Old 07-23-2010, 03:29 PM   #7
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What you need to do is indicate to FIRECalc that starting in 2018 your withdrawals will increase by $30K/year.

Tell FIRECalc what your actual expected spending will be beginning in 2013. Take a look at the three buttons at the bottom of the page on the "Other Income/Spending" tab. You should be able to accomplish what you are seeking by adding in an "off chart spending" amount of $30K beginning in 2018.
Brilliant. I reduced the withdrawal rate by DW's salary and added compensation for that as off-chart spending.

The results are very interesting. Apparently I can afford to FIRE in 6 months. So another 2/3 years will be a cushion, or a deposit on a home for each child.
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