Delayed retirement and Firecalc

[Rich_by_the_Bay]

If I enter current expenses in FireCalc, but tell it to put off retirement for 5 years does it inflation-adjust those expenses for the starting line 5 years hence? Or does it assume that those are the expenses I'd like to use when retirement start 5 years from now?

 

[dory36]

It inflation adjusts whatever you put in. So the first year withdrawal will be bigger than what you enter by the amount of inflation.

 

[Rich_by_the_Bay]

It inflation adjusts whatever you put in. So the first year withdrawal will be bigger than what you enter by the amount of inflation.

Great, thanks. I was really feeling poor there for a minute.

Other quandry: my first 3-4 years of FIRE will be based on after-tax savings. Then I switch to tax-sheltered funds and thus need to kick them up so I end up whole after taxes.

I'm handling by entering an "increase in withdrawals starting in ..." to mimic this, adjusting for inflation. Sound sound?

 

[REWahoo]

Sound sound?

Yes yes. I did (and am doing) the same.

 

[2B]

I had the same problem. My mortgage (yes I have one) doesn't need to inflate. I figured it out and put it in as an "increased withdrawl" without inflation. I'm keeping the mortgage because I have way too much inside my IRA. The tax savings (deduction plus less taxable income for 6 years) overwhelm the benefit of paying off the mortgage (I think). I do flip-flop over this.