FIDO RIP question

[tmm99]

When I look at the chart using Today's Dollars, the total expense shown goes up every year although the increase is very, very slight, and some years more $ amount than others (and a couple of times, I see a decrease instead of an increase.) I know the total expense $ amount would increase if I chose Future Dollars, as that would bring the value of the dollar down in accordance with inflation, but I am choosing Today's Dollars and see this very slight increase. At the end of the 35-year run, the total expense goes up by over 50% (in today's dollars).

Does your Today's Dollar chart look like mine? Can someone tell me why this is?

Are they anticipating healthcare cost increase or something?

I looked at the methodology doc, but I couldn't figure it out...

 

[Dtail]

When I look at the chart using Today's Dollars, the total expense shown goes up every year although the increase is very, very slight, and some years more $ amount than others (and a couple of times, I see a decrease instead of an increase.) I know the total expense $ amount would increase if I chose Future Dollars, as that would bring the value of the dollar down in accordance with inflation, but I am choosing Today's Dollars and see this very slight increase. At the end of the 35-year run, the total expense goes up by over 50% (in today's dollars).

Does your Today's Dollar chart look like mine? Can someone tell me why this is?

Are they anticipating healthcare cost increase or something?

I looked at the methodology doc, but I couldn't figure it out...

I haven't been able to prove it totally mathematically, but supposedly the general expenses increase by an inflation rate of 2.5%, the medical increases 4.9% and after some point if one has a mortgage, they reduce that expense.
This is all on the "Today's Dollar" chart.

 

[The Cosmic Avenger]

I checked, and my "Withdrawal from savings" segment is the part that increases a little every year (the "Lifetime income", which is SS, stays the same). Unless you're spending down to be broke at a particular age, it probably assumes you'll withdraw enough to have your 4% WR grow every year.

 

[latexman]

My Fidelity Advisor (free) is near the top right corner of the Portfolio page. Is yours? Call them. If not, call the 800 #.


Mine stays flat most years, until an event changes it, like RMDs pushing up taxes early on and one of us dies near the end.

 

[tmm99]

My Fidelity Advisor (free) is near the top right corner of the Portfolio page. Is yours? Call them. If not, call the 800 #.


Mine stays flat most years, until an event changes it, like RMDs pushing up taxes early on and one of us dies near the end.

I'm a Canadian resident now, so I cannot talk to a FIDO advisor anymore (They stopped helping me when I moved to Canada... Some kind of regulations.) I called their 800# and talked to three different people, but they couldn't tell me.

Anyway, now that you mentioned RMD, I looked at my table, and I think that's exactly what is raising my total expenses. (I see my RMD amount increasing over time.) The "withdrawal from savings" numbers are increasing once RMD starts as I will have to pay extra taxes on the RMD. Thank you very much for helping me figure this out!

I also see a jump at Age 65 (nothing to do with SS since I'm not starting my SS until 67, and my SS doesn't cover my total spending anyway..). Does this tool account for Medicare expenses or something starting Age 65?

Anyone else see a jump at Age 65?

 

[Dtail]

My expense inflation increase at 65 is in line with the other years.
I don't believe that the RIP tool is sophisticated enough to calculate Medicare expenses vs. any other medical expenses pre Medicare.