Fidelity RIP tool

tdv2 said:
The answer is Yes. Go into the tool and run the analysis. Click the blue Accounts & Income Sources button on the left side halfway down the page, then click the + next to accounts. You can edit or delete the unwanted accounts from this page.
Click to expand...

Unfortunately, only manually input accounts can be deleted. Once I 'link' an account, I can not delete it or edit anything except "Annual Contributions" to that account. That is why I was seeking another method to handle the linked accounts.
 
I am new to using RIP. When I enter Medicare expenses in the budget, do I enter what my estimate is for what we'd pay in 2016, and then the tool will project what the cost will be when we are actually 65?

Or do I enter what I project costs for Medicare to be for us at age 65?
 
simple girl said:
I am new to using RIP. When I enter Medicare expenses in the budget, do I enter what my estimate is for what we'd pay in 2016, and then the tool will project what the cost will be when we are actually 65?

Or do I enter what I project costs for Medicare to be for us at age 65?
Click to expand...

When I created my budget in RIP some years ago I allocated $15,000/year for Medical, and didn't attempt to estimate Medicare $ as any different to other health $. Insurance premiums and out of pocket costs have varied a lot for us this past few years so having a generous sum budgeted for healthcare is as much as I want to do.

That $15,000 is adjusted for inflation by RIP I think, but who really knows how health costs will increase either by price inflation and/or ill health.
 
simple girl said:
I am new to using RIP. When I enter Medicare expenses in the budget, do I enter what my estimate is for what we'd pay in 2016, and then the tool will project what the cost will be when we are actually 65?

Or do I enter what I project costs for Medicare to be for us at age 65?
Click to expand...

You should input numbers all in today's dollars/costs and let the tool do the rest. RIP assumes 7% inflation rate for healthcare costs. You can see all the assumptions the tool makes if you click on the methodology tab at the top of the page. Here is the excerpt:


The Tool makes the following inflation assumptions and does not allow you to change these inflation rates.
  • Health Care Costs: The default inflation rate of health care costs is 7%. This figure is based on a study by the Centers for Medicare & Medicaid Services (CMS) (an agency of the U.S. Department of Health and Human Services) estimating growth in health care costs between 2001 and 2011.
 
tdv2 said:
You should input numbers all in today's dollars/costs and let the tool do the rest. RIP assumes 7% inflation rate for healthcare costs. You can see all the assumptions the tool makes if you click on the methodology tab at the top of the page. Here is the excerpt:
Click to expand...


Thank you for the confirmation on how thought it worked. I'm really liking this tool.
 
Every now and then instead of the retirement preparedness measure wheel I get a line graph indicating what my anticipated monthly spend could potentially be in an under performing market and in an average market. For some reason I can't make this chart show up on purpose.

Anyone else get this monthly spend chart?
 
New change to the tool. Fidelity reduced the healthcare inflation assumption from 7% to 5.5%. My retirement preparedness score went from 104 to 111 on this change.
 
tdv2 said:
New change to the tool. Fidelity reduced the healthcare inflation assumption from 7% to 5.5%. My retirement preparedness score went from 104 to 111 on this change.
Click to expand...

Do you know when this occurred? TIA.

Sent from my SAMSUNG-SM-G920A using Early Retirement Forum mobile app
 
my retirement preparedness score went from 111 to 125 from when I checked last week.
 
tdv2 said:
New change to the tool. Fidelity reduced the healthcare inflation assumption from 7% to 5.5%. My retirement preparedness score went from 104 to 111 on this change.
Click to expand...

Wow, did they give a reason anywhere as to why?
 
while we are seeing increases they have been getting smaller then they were nationally . most of the savings has been because the plans today have higher co-pays , deductibles and out of pockets . over the years we went from 250 bucks to 2500 in deductible .

we are headed back towards where we were decades ago when you had major medical and paid for everything else
 
tdv2 said:
New change to the tool. Fidelity reduced the healthcare inflation assumption from 7% to 5.5%. My retirement preparedness score went from 104 to 111 on this change.
Click to expand...

Where did you get this? I was just on the site and see no change in health care assumptions from 7% under Methodology. Perhaps you meant changes to LTC cost assumptions:

The Tool makes the following inflation assumptions and does not allow you to change these inflation rates.

Health Care Costs: The default inflation rate of health care costs is 7%. This figure is based on a study by the Centers for Medicare & Medicaid Services (CMS) (an agency of the U.S. Department of Health and Human Services) estimating growth in health care costs between 2001 and 2011.

Long-Term-Care Costs: The default inflation rate of long-term-care costs is 5.5% modeled in the what-if scenarios. This figure is based on a study by the Centers for Medicare & Medicaid Services (an agency of the U.S. Department of Health and Human Services) estimating growth in long-term-care costs between 2001 and 2011.

Long-Term-Care Insurance Premiums: The default inflation rate of long-term-care insurance premiums entered in the Budget Worksheet is 0%. This figure is based on the assumption that your insurance premiums are fixed and level.
Click to expand...
 
This is what pops up when I go to the retirement preparedness tool -

"A quick update

Reminder: The Fidelity Planning & Guidance Center is provided for your education only. You shouldn't use what you learn here as the primary basis for investment or tax-planning decisions.

Recent updates
To help provide a more accurate analysis, Fidelity constantly evaluates the assumptions we use, as well as new retirement research.

Lower health care inflation rate: Based on new economic projections, we’ve lowered the annual inflation rate we apply to health care expenses from 7% to 5.5%. As a result, you may see that your retirement analysis has improved.

Longer lifespans: Research now shows Americans are living longer. As a result, you may want to update your retirement goal's Time Horizon to reflect today's longer lifespans."
 
125 in an under performing market and plugging in a 25% reduction in SS in 2035 - I think we will be okay even under the previous 7% when it showed only a 111 score.
 
obviously they haven't updated their methodology page yet to reflect the changes they have highlighted in the updates.
 
Thanks. I always ignore and click right through that initial pop-up (guess I won't in the future!). Rather sloppy of them not to have made corresponding changes in the methodology section.
 
After seeing tdv2's post, I logged in and I see the change. The result is that my small margin of safety has morphed into a huge margin of safety. I did also see the reference to everybody living longer but for now I will leave the planned ages of 92/94 for us.
 
DEC-1982 said:
After seeing tdv2's post, I logged in and I see the change. The result is that my small margin of safety has morphed into a huge margin of safety. I did also see the reference to everybody living longer but for now I will leave the planned ages of 92/94 for us.
Click to expand...

I left my planning age alone as well. Since I'm only 52 now I don't think adding another year or two will make too big a difference anyway.
 
Nice, increased my RIP score also.


On another note, I've entered in an entry under 'Additional Income Sources' for my pension and don't see a way to add in COLA increases. Any suggestions?
 
dand76 said:
Nice, increased my RIP score also.


On another note, I've entered in an entry under 'Additional Income Sources' for my pension and don't see a way to add in COLA increases. Any suggestions?
Click to expand...

When you set up you pension in RIP, there is a box to click to indicate if it is a cola or non cola payment.
Find the Income section in your RIP and location your pension, click edit and make the adjustment. You should be good.
Nwsteve
 
nwsteve said:
When you set up you pension in RIP, there is a box to click to indicate if it is a cola or non cola payment.
Find the Income section in your RIP and location your pension, click edit and make the adjustment. You should be good.
Nwsteve
Click to expand...

Thanks for the response but just not seeing a box mentioning COLA. There's a check box that that says 'Adjust to future dollars' which the description says is:
--------------
"Checking this box makes it so that this income source is valued at the time you expect to receive it for the purposes of your retirement analysis, accounting for inflation and the number of years until you reach the age at which you expect to begin receiving it. Otherwise, your analysis will reflect this income source valued in today's dollars."
--------------
This seems to just increase the value by some inflation amount up until the date I start receiving payments from the pension.

I was hoping for a place where I could enter in a COLA percentage, such as 1.5%, that my estimated increase will be.

My 'Income type' is Joint and Survivor Pension'. I checked all the other Income types and didn't see anything about COLA.

Maybe I'm just misunderstanding or, as my wife just reminded me, it's time for us to go for our annual eye exams. :cool:
 
When you log in, it does give you the notice.
 

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dand76 said:
There's a check box that that says 'Adjust to future dollars'

This seems to just increase the value by some inflation amount up until the date I start receiving payments from the pension.
Click to expand...

From what I have seen, the 'Adjust to future dollars' option does cause income to adjust with inflation throughout retirement. Selecting this shows income flat across the Retirement Analysis bar chart when viewed in today's dollars (retaining its value over time by keeping pace with inflation), or increasing when viewed in future dollars. Unselecting the option shows the income decreasing when viewed in today's dollars (becoming less valuable) or flat when viewed in future dollars. You can change the view of the Retirement Analysis chart using the settings gear.
 
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