BlueberryPie
Recycles dryer sheets
- Joined
- Feb 17, 2021
- Messages
- 262
I just discovered FireCalc and it's such a great tool! and free too! (I'll donate to support). I love the configurability!
What got me to FC in the first place was the ability to use the 95% rule rather than the inflation-adjusted 4% of starting portfolio that most others seem to use, when they simply don't use fixed income.
I have yet to play with the Bernicke model, although I would need to understand it better, I think healhtcare expenses might rise as you grow older, but maybe by then you just watch Jeopardy reruns all day, and while all your money goes to healthcare, it's also all you pend on?
Anyway, I digress. I plan to retire in 10 years, but the "Year-by-Year Spending" section shows spending in the next 10 years where I expected to be blank. The "spending" curve goes up until the retirement date though, so I assume it shows a fixed % of my portfolio but doesn't actually count it as withdrawn? so the curves at retirement age are correct, I can just mentally ignore the part leading up to it?
I also noticed that it didn't use a 4% rate, but a much higher one. It looks loke it assumes the desired withdrawal rate is the Spending amount on the first tab, divided by the portfolio value on the first tab.
Speaking of which, is the spending in the first tab pre or post-tax? For example if I want to actually have $96,000 to spend, I need to withdraw $124K to get that $72K after taxes (in today's dollars)
Which one should I enter in the "spending" entry in the first tab? that's a big difference
What got me to FC in the first place was the ability to use the 95% rule rather than the inflation-adjusted 4% of starting portfolio that most others seem to use, when they simply don't use fixed income.
I have yet to play with the Bernicke model, although I would need to understand it better, I think healhtcare expenses might rise as you grow older, but maybe by then you just watch Jeopardy reruns all day, and while all your money goes to healthcare, it's also all you pend on?
Anyway, I digress. I plan to retire in 10 years, but the "Year-by-Year Spending" section shows spending in the next 10 years where I expected to be blank. The "spending" curve goes up until the retirement date though, so I assume it shows a fixed % of my portfolio but doesn't actually count it as withdrawn? so the curves at retirement age are correct, I can just mentally ignore the part leading up to it?
I also noticed that it didn't use a 4% rate, but a much higher one. It looks loke it assumes the desired withdrawal rate is the Spending amount on the first tab, divided by the portfolio value on the first tab.
Speaking of which, is the spending in the first tab pre or post-tax? For example if I want to actually have $96,000 to spend, I need to withdraw $124K to get that $72K after taxes (in today's dollars)
Which one should I enter in the "spending" entry in the first tab? that's a big difference