Dory36,
I have a situation where I have accumulated several years of deferred income with my employer that will be greater than my living expenses for the first 10 years of retirement. The payout of the deferred income will be fixed payments ending over a the 10 year period. In using FIRECalc I entered my data as follows:
1. I did NOT include my deferred income account value in the initial portfolio value.
2. I entered my normal expected expenses (including taxes) in the annual withdrawal field.
3. Under Withdrawal Change 1, I entered a reduction (negative no.) to my withdrawal starting in year 1 to reflect the deferred income payments. NOT inflation adjusted.
4. Under Withdrawal Change 2, I entered a further reduction in withdrawal to reflect Social Security benefits starting in yr 8.
5. Under Withdrawal Change 3, I entered an increase in expenses in year 11 to reflect the requirement to increase withdrawals to cover the end of the deferred income payout. NOT inflation adjusted.
The reduction in withdrawals entered in year 1, are greater than the initial withdrawal (I'll actually have more income than I need - benefit from living below means). My question is does FIRECalc recognize this resulting negative withdrawal and increase my portfolio by the excess for these first 10 years?
Thanks.
Moguls
I have a situation where I have accumulated several years of deferred income with my employer that will be greater than my living expenses for the first 10 years of retirement. The payout of the deferred income will be fixed payments ending over a the 10 year period. In using FIRECalc I entered my data as follows:
1. I did NOT include my deferred income account value in the initial portfolio value.
2. I entered my normal expected expenses (including taxes) in the annual withdrawal field.
3. Under Withdrawal Change 1, I entered a reduction (negative no.) to my withdrawal starting in year 1 to reflect the deferred income payments. NOT inflation adjusted.
4. Under Withdrawal Change 2, I entered a further reduction in withdrawal to reflect Social Security benefits starting in yr 8.
5. Under Withdrawal Change 3, I entered an increase in expenses in year 11 to reflect the requirement to increase withdrawals to cover the end of the deferred income payout. NOT inflation adjusted.
The reduction in withdrawals entered in year 1, are greater than the initial withdrawal (I'll actually have more income than I need - benefit from living below means). My question is does FIRECalc recognize this resulting negative withdrawal and increase my portfolio by the excess for these first 10 years?
Thanks.
Moguls