FireCalc Inputs

[cnocmmz]

Good Day
I have been on this site for some time now have commented on several areas. I have also been impressed on how many young people have such a large wealth factor.
So, As the DW and I ponder retirement in 2020 I have put my number in Firecalc as such and am wondering if the facts are what it says or am I doing something incorrect?
Tabs:
-Spending 115K Portfolio 650K Years 34
-Income/spending: Pensions: 81K (total pensions)starting 2020. SS total
is 30K (spouse 2020 and mine 2022).
-Portfolio Changes: We will take out 75K from 2022-2025 for various
things.
-Investigate: Told them that I wanted to leave 300K in account always (inheritance for kids).

So with that said, FireCalc came back with a 100% success rate. Is this possible for the 650K input? I have other assets but keeping that separate.
\Thanks

 

[Lewis Clark]

Seems like the combination of pensions and Social Security is covering nearly all of your expenses. It doesn't appear that you will need to take much from your portfolio to cover your annual spending, so yes it is possible.

 

[Rianne]

Very nice pension. We could live on that without taking anything from portfolio.

 

[braumeister]

Don't forget to run the numbers considering that one of you may go first. Turning into a single person household means the loss of one pension, one SS, different taxation and different spending.

 

[cnocmmz]

Very nice pension. We could live on that without taking anything from portfolio.

Thank you. I am 59 in 2020 and DW is 65 so with the combination of military pension/wife’s pension and my small gov pension, and of course SS. Medical not an issue with retired mil and DW will start Medicare.
I can only assume that taxes will have to come out of that?

 

[pb4uski]

Good Day
I have been on this site for some time now have commented on several areas. I have also been impressed on how many young people have such a large wealth factor.
So, As the DW and I ponder retirement in 2020 I have put my number in Firecalc as such and am wondering if the facts are what it says or am I doing something incorrect?
Tabs:
-Spending 115K Portfolio 650K Years 34
-Income/spending: Pensions: 81K (total pensions)starting 2020. SS total
is 30K (spouse 2020 and mine 2022).
-Portfolio Changes: We will take out 75K from 2022-2025 for various
things.
-Investigate: Told them that I wanted to leave 300K in account always (inheritance for kids).

So with that said, FireCalc came back with a 100% success rate. Is this possible for the 650K input? I have other assets but keeping that separate.
\Thanks

Yes, that seems very possible. Once your pension and SS start your gap is $4k/year. Your pension and SS start in a little over a year or 2... so carve out $230k to replace that income between now and then... less $75k for various things leaves $345k... $4k of withdrawals on $345k is a little over a 1% WR and portfolio returns should easily be able to cover those.

Also, as braumeister suggests, also run your numbers if your or your spouse were to pass tomorrow because things change alot for a single compared to a couple... one SS benefit goes away and possibly a pension depending on what pension option that you chose.

 

[cnocmmz]

Don't forget to run the numbers considering that one of you may go first. Turning into a single person household means the loss of one pension, one SS, different taxation and different spending.

Yes, good point. May have to move or downsize at that juncture.

 

[Dtail]

Mathematically it does indeed sound good.
As an aside, are your pensions COLA'd and did you input them with the inflation box checked?

 

[cnocmmz]

Yes, that seems very possible. Once your pension and SS start your gap is $4k/year. Your pension and SS start in a little over a year or 2... so carve out $230k to replace that income between now and then... less $75k for various things leaves $345k... $4k of withdrawals on $345k is a little over a 1% WR and portfolio returns should easily be able to cover those.

Also, as braumeister suggests, also run your numbers if your or your spouse were to pass tomorrow because things change alot for a single compared to a couple... one SS benefit goes away and possibly a pension depending on what pension option that you chose.

I guess I could wait to collect mine at 67
?

 

[cnocmmz]

Mathematically it does indeed sound good.
As an aside, are your pensions COLA'd and did you input them with the inflation box checked?

Yes Cola'd and checked thanks. Just got to figure out the taxes on the 115K for the actual annual net since FireCalc cannot apply that?
Thanks

 

[pb4uski]

You need to include and estimate of taxes in spending in FIRECalc.

 

[cnocmmz]

Did not know that there was a block for taxes?

 

[braumeister]

Taxes are something you spend money on, just like anything else. Include them in your estimated spending amount.

 

[pb4uski]

Did not know that there was a block for taxes?

There is no block for taxes.... if you need $40k before taxes for living expenses and taxes are $5k then you input $45k for spending on the first tab.

 

[Dtail]

Some calculators like Fidelity effectively calculate your taxes for you.

 

[5j404]

Make sure you check whether you will get hit with government pension offset, and or the windfall elemination provision if your going to get a government pension. It can greatly decrease your social security amount.

 

[cnocmmz]

Make sure you check whether you will get hit with government pension offset, and or the windfall elemination provision if your going to get a government pension. It can greatly decrease your social security amount.

No offset...Thanks