Firecalc does not figure taxes?

[bulbar]

So my 90% success rate is ont really 90% because Firecalc doesn't include Fed taxes, FICA, medicare?

 

[samclem]

So my 90% success rate is ont really 90% because Firecalc doesn't include Fed taxes, FICA, medicare?

Taxes are an expense, you need to figure out what you'll be paying in taxes and build that into your budget. Your FIRECALC withdrawals are "gross withdrawals."

You'd need to enter a LOT more information if FIRECalc (or any other program) was going to figure out your taxes, too.

 

[Senator]

Odds are, you do not need to pay FICS or Medicare if you are using passive income like a rental or dividends.

Depending on your tax rate, figure at least 15% for federal taxes and some for the State, county, city, etc. Also figure property taxes.

When people retire at 30, I always wonder how they do it. It takes a LOT of money to retire at 55 without a great pension.

 

[REWahoo]

You'd need to enter a LOT more information if FIRECalc (or any other program) was going to figure out your taxes, too.

+1

Bulbar, you can find an answer to many questions about FIRECalc - and educate yourself on how it works - by spending some time reading what the guy who created the program wrote here: How It Works

 

[ImThinkin2019]

Hi Bulbar

After trying numerous free calculators, I found there were a couple of shortcomings. One was estimating social security (got many different answers) and the other was estimating taxes. In my particular tax situation I wanted to compare a number of Roth conversion curves to try and optimize the amount I convert each year.

I finally bought ESPlanner which IMHO does a very good job of estimating both Social Security and taxes. Now that I've tried it, it's my default planner.

 

[audreyh1]

Yes, Firecalc takes into account taxes AS LONG AS you include them as part of your withdrawal. In other words, what you withdraw always has to cover taxes owed.

 

[Fishingmn]

Try using this site to get an estimate of your expected state and federal taxes and then use that in your expense projection - Income Tax Calculator - Tax-Rates.org

 

[Options]

I use FRIP and ESPlanner taxes as a baseline guesstimate of taxes, which I include in my expenses when inputting into FIRECALC.

 

[bulbar]

I think I'll look into that ESPlanner. thanks for the help

 

[Options]

BTW, I am extremely satisfied with ESPlanner Professional. It provides greater detail and is even more robust than FRIP, which is my other most favorite calculator (beyond FIRECALC, of course). Scott Burns, who has authored a couple books with Kotlikoff (ESPlanner creator) recommends it and uses the free version of ESPlanner for examples in his columns and blog. I've always thought a great deal of Burns and am pleased he recommends it.