Clarification on 'off-chart spending' entry

[smurray5991]

Do you enter Off-Chart spending (OCS) as a positive number or a negative number in FIRECalc, e.g., to reflect a mortgatge ending?

I see that it shows up in the data summary with a default "+" sign before the number, compared with the pension and other income which show up with default "-" signs before the numbers, even though you enter those in data field as a positive number.

All along I assumed that you enter the OCS as a negative number (i.e., to reflect the reduction in your expenses/outlay). When doing that what shows up in the data summary is still the default + sign, but followed by the negative number I entered.

Keeping it negative seems consistent with how the income streams are represented as default negatives (i.e., because they reduce needed drawdown on the portfolio as well, just as the paid off mortgage does), but now I'm not so sure?

BTW, in trying it both ways, it seems that entering OCS as a negative provides better portfolio ending values (which would be expected) -- but just wanted to double check what is the correct way to enter this so I'm not distorting the scenario.

THANKS in advance for your help!

 

[REWahoo]

Do you enter Off-Chart spending (OCS) as a positive number or a negative number in FIRECalc, e.g., to reflect a mortgatge ending?

As a negative number.

For example, for a $2,000/mo mortgage payment you plan to pay off in 2020, you would enter a negative $24,000 in off chart spending beginning in 2021.

 

[smurray5991]

Great, thanks so much for the quick response. That's actually what I did, but just started to second guess when looking at the data display..... that'll teach me to overthink things so much!

 

[Original Wally]

That makes sense... it is what MODIFICATION to the original number from Step 1.

OTOH, if you knew that in 20XX a certain annual expenditure would KICK IN, that would be a positive number. It would ADD to the base number from step 1