annual spending

[simple girl]

OK, I'm sure someone has asked this before, but I couldn't find the answer when I did a search.

Under "annual spending", do you put in what you expect to spend every year, or what you expect to spend plus the taxes you'd have to pay on that? ie. if you plan to spend about $40,000 per year, do you put that in, or do you put in $46,000 (assuming 15% tax bracket)?

 

[retire@40]

You put in all your expenses, including estimated taxes.

 

[REWahoo]

FIRECalc does not take taxes into account, so what you spend each year needs to include what you plan to spend on taxes. In your example, put in $46,000.

 

[Sheryl]

Under "annual spending", do you put in what you expect to spend every year, or what you expect to spend plus the taxes you'd have to pay on that?  ie. if you plan to spend about $40,000 per year, do you put that in, or do you put in $46,000 (assuming 15% tax bracket)?

Unless, of course, the money is in savings or other after-tax accounts.