Fidelity RIP

[GravitySucks]

It does not for me. Or at least the one I can find. I am not a Fido Member. It wants to know how much one intends to spend in retirement. I want one that tells me how much I can spend.

I play with Fidos calculator way to much.
What I like to do is bump travel or entertainment expenses until I see a failure in the worst case market scenario. I extrapolate that to how much is a Max inflation adjusted spending limit.

 

[Al18]

I use Fidelity's Retirement Planner the same way - increase your discretionary expenses until your expenses exhaust your resources.

 

[albireo13]

OK, figured out how to use Fido RIP and tried it out. Got a rating of 121, which seems to be good. Only thing is I haven't figured out how to include future "lumpy" expenses.
Such as buying cars, an RV camper, and we also plan to contribute to college expenses for 2 of our kids ($40K total).


Is there a way to schedule lumpy expenses?

 

[COcheesehead]

OK, figured out how to use Fido RIP and tried it out. Got a rating of 121, which seems to be good. Only thing is I haven't figured out how to include future "lumpy" expenses.
Such as buying cars, an RV camper, and we also plan to contribute to college expenses for 2 of our kids ($40K total).


Is there a way to schedule lumpy expenses?

In the budget, go to custom expenses and add one time or “lumpy” expenses there.

 

[ShokWaveRider]

I think you have to be a Fido member to get all these options. From the main page as a general user, I only get basic items to enter.

 

[Dtail]

I think you have to be a Fido member to get all these options. From the main page as a general user, I only get basic items to enter.

I believe that is correct.

 

[Dtail]

OK, figured out how to use Fido RIP and tried it out. Got a rating of 121, which seems to be good. Only thing is I haven't figured out how to include future "lumpy" expenses.
Such as buying cars, an RV camper, and we also plan to contribute to college expenses for 2 of our kids ($40K total).


Is there a way to schedule lumpy expenses?

Sounds like you are good to go, as that translates to being able to cover 121% of your expenses with a 90% confidence level, although your lumpy expense input should logically bring down the number a little bit.

+1 with Cocheesehead response.

 

[bingybear]

I believe you can get a 30 day sign in so you can play with the tools without having assets at FIDO.

 

[bostwick]

I used several calculators before retiring five years ago at 58 and they all indicated a go. Immediately after my date expenses began to change that I had not planned. My spouse was diagnosed with cancer and we had more out of pocket insurance costs than we planned. On top of that, my retiree health insurance policy switched to an ACA like plan and our annual premiums began to skyrocket since we didn't qualify for a subsidy. Our first two grandchildren were born and we have spent more on gifts and entertainment related to them than I expected. Also, there have been two children's weddings and the cost for those was underestimated. Finally, one of our two old cars gave out early.

In order to determine if I needed to go back to work, I needed to recalculate my retirement. I created an Excel spreadsheet that was much more detailed than most calculators as it related to expenses and their timing. My spreadsheet factored in the timing of the payoff of our mortgage; the amount and timing of the initiation of our SSA payments; the reduction in health insurance costs when we switch to Medicare; the expected income dependent federal and state income tax; and I factored in inflation. It's a living spreadsheet so I can adjust almost all factors up or down as needed to give me a real-time calculation of where I am. I can change the rate of return on my investments after each year in case it was greater or less than projected.

Based on the spreadsheet I determined if we could keep our costs down and had no unexpected expenses then once we went on Medicare we would be fine without me going back to work.

 

[Dtail]

I used several calculators before retiring five years ago at 58 and they all indicated a go. Immediately after my date expenses began to change that I had not planned. My spouse was diagnosed with cancer and we had more out of pocket insurance costs than we planned. On top of that, my retiree health insurance policy switched to an ACA like plan and our annual premiums began to skyrocket since we didn't qualify for a subsidy. Our first two grandchildren were born and we have spent more on gifts and entertainment related to them than I expected. Also, there have been two children's weddings and the cost for those was underestimated. Finally, one of our two old cars gave out early.

In order to determine if I needed to go back to work, I needed to recalculate my retirement. I created an Excel spreadsheet that was much more detailed than most calculators as it related to expenses and their timing. My spreadsheet factored in the timing of the payoff of our mortgage; the amount and timing of the initiation of our SSA payments; the reduction in health insurance costs when we switch to Medicare; the expected income dependent federal and state income tax; and I factored in inflation. It's a living spreadsheet so I can adjust almost all factors up or down as needed to give me a real-time calculation of where I am. I can change the rate of return on my investments after each year in case it was greater or less than projected.

Based on the spreadsheet I determined if we could keep our costs down and had no unexpected expenses then once we went on Medicare we would be fine without me going back to work.

Good to hear. It sounds like you didn't freak out and have a good logic and math background.
Hope to see more posts in the future.

 

[ychuck46]

I find most of the calculators to be amusing when they tell you how much you can spend. My score on the Fidelity on was 150+, but I spend well under what they tell you that you can safely spend. My definition of safe is not as aggressive as theirs, I guess. I would caution people with using some of the calculator spend results nonetheless.

 

[Dtail]

I find most of the calculators to be amusing when they tell you how much you can spend. My score on the Fidelity on was 150+, but I spend well under what they tell you that you can safely spend. My definition of safe is not as aggressive as theirs, I guess. I would caution people with using some of the calculator spend results nonetheless.

Possibly, but 150+ on the Fidelity calculator which is one of the most conservative out there is a pretty good score. One of the reasons your score is 150+ is because you spend well under what they tell you can spend.

 

[ncbill]

Yes, I also prefer the Fidelity calculator since it's the most conservative (at its default settings)

 

[kashifnoorani]

Apologies if this question has been answered before but I was wondering if anyone has used Personal Capital's planning tool instead? I ask since my accounts are centralized via PC. They use Monte Carlo simulations also, of course.

 

[wmc1000]

We have used both. Stopped using PC because they called me too many times wanting to review portfolio. I kept telling them I wasn't interested and finally shut down my aggregation on their site.

 

[COcheesehead]

We have used both. Stopped using PC because they called me too many times wanting to review portfolio. I kept telling them I wasn't interested and finally shut down my aggregation on their site.

Me too. No longer use PC. I thought the tools were just a bit too simplistic.

 

[kashifnoorani]

To both wmc1000 & COcheesehead: thanks for replying. I found that the nagging got over after I took one call with their advisor and explained that I invest in low-cost funds and that the PC cost to actively manage would be 5x the cost of investing in these funds

If not PC, where do you guys aggregate (including real estate) which also has robust tools?

I am struggling to create a realistic FIRE plan which my spouse and I can trust.

 

[COcheesehead]

To both wmc1000 & COcheesehead: thanks for replying. I found that the nagging got over after I took one call with their advisor and explained that I invest in low-cost funds and that the PC cost to actively manage would be 5x the cost of investing in these funds

If not PC, where do you guys aggregate (including real estate) which also has robust tools?

I am struggling to create a realistic FIRE plan which my spouse and I can trust.

I use the Fidelity tool mostly. I like that it has the detailed budget builder and that helps me to not overlook expenses. I tie it into 3rd party accounts so it gives me a universal view.

I also paid for an app called Retire Plan, I think it was $4.99 or something like that. Its good for what if's and has good graphics, but it doesn't do Monte Carlo.

https://itunes.apple.com/us/app/retireplan/id435739013

I-ORP is OK, cumbersome, but it gives you another view.
Firecalc is the classic, but doesn't allow you to build a budget.

 

[explanade]

Vanguard let’s you add outside accounts though you have to update share quantities manually.

It generates an aggregate AA pie chart based on all your holdings, both VG and outside assets.

Otherwise you can use personal finance software. I used to do it in Quicken but bailed on their subscription scheme so use Bankivity for the Mac.

Also have a Google Sheets spreadsheet with GoogleFinance function which will update share prices everyday.

Don’t have real estate in any of these.

 

[wenglish]

Does the Fidelity tool allow you to aggregate both members of a couple, without doubling the money in the shared (non-retirement) Fidelity accounts? For example:
Him - 401(k), various IRAs
Her - various IRAs, couple of pensions (managed by Fidelity)
Joint - various investment accounts

Right now I handle this in Personal Capital and Quicken (excluding the pensions), but it would be nice if I could go (easily) straight to the horse's mouth (Fidelity) for this.

(with the exception of one small pension, all our eggs are in the Fidelity basket)

Thanks

 

[COcheesehead]

Does the Fidelity tool allow you to aggregate both members of a couple, without doubling the money in the shared (non-retirement) Fidelity accounts? For example:
Him - 401(k), various IRAs
Her - various IRAs, couple of pensions (managed by Fidelity)
Joint - various investment accounts

Right now I handle this in Personal Capital and Quicken (excluding the pensions), but it would be nice if I could go (easily) straight to the horse's mouth (Fidelity) for this.

(with the exception of one small pension, all our eggs are in the Fidelity basket)

Thanks

Go under Accounts and Income sources and you add/manage anything you want.

 

[Perryinva]

Since I am close to pulling the plug in 600 days at 62, it may be easier for me to use the calculators. I don’t need live aggregate account info in the calculators, manual entry is preferred. I get pretty similar numbers from both ORP and RIP in 90% success rate. My only gripes with RIP is the lack of detail as to funding sources and taxes per year, and the average market return (50% success rate) seems extremely high. If RIP in 90% mode is conservative than I am very pleased. ORP really shines in the what if category, especially in the IRA to Roth conversion and the pay taxes now vs pay taxes later comparisons. In Monte Carlo mode, 90% success is consistent with others. Of course my RE is planned at 62, so, much shorter than many here and no high HC insurance costs means its a simpler prediction.

DW is not financially saavy and thinks I am over thinking everything. “People have been retiring with way less forever and way before computers and did just fine.” I always tell her my definition of “did just fine” must be way different than hers.

 

[COcheesehead]

Since I am close to pulling the plug in 600 days at 62, it may be easier for me to use the calculators. I don’t need live aggregate account info in the calculators, manual entry is preferred. I get pretty similar numbers from both ORP and RIP in 90% success rate. My only gripes with RIP is the lack of detail as to funding sources and taxes per year, and the average market return (50% success rate) seems extremely high. If RIP in 90% mode is conservative than I am very pleased. ORP really shines in the what if category, especially in the IRA to Roth conversion and the pay taxes now vs pay taxes later comparisons. In Monte Carlo mode, 90% success is consistent with others. Of course my RE is planned at 62, so, much shorter than many here and no high HC insurance costs means its a simpler prediction.

DW is not financially saavy and thinks I am over thinking everything. “People have been retiring with way less forever and way before computers and did just fine.” I always tell her my definition of “did just fine” must be way different than hers.

My Dad retired at 62 with SS, a small union pension and $40,000 in CD’s. This was back in the ‘80’s. He owned the house. Traveled overseas. Ate out. Enjoyed life. I sometimes think, I too am over thinking it.

 

[Dtail]

My 2 cents is that sure many people did just fine in retirement without using pre retirement calculators and various advice, but perhaps there is/was a small but significant enough % who didn't do well, but we don't hear of it.
My guess is that for the folks on this site who follow some structure/discipline in their investing/withdrawal strategies, it will lead to a minimum number of situations where they run out of monies.

 

[Perryinva]

And it does appear once someone is already retired in RIP, the score goes away. I joined as a guest and was able to see the score, also 150+.