Join Early Retirement Today
Reply
 
Thread Tools Display Modes
cash plus investments in Firecalc?
Old 01-27-2011, 01:04 PM   #1
Dryer sheet aficionado
 
Join Date: Apr 2008
Posts: 31
cash plus investments in Firecalc?

I'm confused.
Lets say you have 50K in cash ( one years living expenses =25K) and 500K in investments.

The 25K is spent first and replenished each year from the investments, so its an annual withdrawal of 25K, I guess.
Do you run Firecalc at 500K or 550K?
swodo is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-27-2011, 01:08 PM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
550.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 01-27-2011, 08:09 PM   #3
Thinks s/he gets paid by the post
photoguy's Avatar
 
Join Date: Jun 2010
Posts: 2,301
Firecalc has an option to specify your portfolio mix.
photoguy is offline   Reply With Quote
Old 01-27-2011, 10:30 PM   #4
Recycles dryer sheets
 
Join Date: May 2010
Posts: 131
First, 500 ... your cash is not part of the [historically based] market fluctuations. Think of what the answer would be in the limit ... if you had 500 in cash and 50 in the market, surely, you wouldn't plug in 550 in firecalc.

Second, if it makes a difference, you're cutting it too close anyway.
__________________
FI@30, ERE@33.
jacob is offline   Reply With Quote
Old 01-27-2011, 10:40 PM   #5
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
Quote:
Originally Posted by jacob View Post
First, 500 ... your cash is not part of the [historically based] market fluctuations. Think of what the answer would be in the limit ... if you had 500 in cash and 50 in the market, surely, you wouldn't plug in 550 in firecalc.
You're not the typical FIRECalc user and you may be over-thinking its design, but its database uses a number of Shiller's asset classes. One of the options is to enter a portfolio of mixed assets like one-month Treasuries. Another fixed-income asset is "commercial paper"... close enough to cash for most.

A user with $500K cash would choose one of those options and realize that they needed to either cut back spending or move a little further out along the risk/reward curve.

Regardless, your second point is the important one!
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 01-28-2011, 05:36 AM   #6
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by jacob View Post
First, 500 ... your cash is not part of the [historically based] market fluctuations. Think of what the answer would be in the limit ... if you had 500 in cash and 50 in the market, surely, you wouldn't plug in 550 in firecalc.
As Nords points out, this is incorrect. FIRECalc has an asset class option that is essentially cash.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 01-29-2011, 09:30 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 13,151
Quote:
Originally Posted by REWahoo View Post
550.
Concur. (Just for a little consensual validation.........)
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Poll-What is your current annual cash income from fixed investments haha FIRE and Money 20 11-24-2010 12:26 PM
Should there be a Firecalc (program) for cash flow? dex FIRE and Money 8 12-19-2008 08:22 PM
MRD vs cash flow from investments oldman FIRE and Money 6 02-22-2008 01:21 PM
Tax Efficent Cash Investments Culture FIRE and Money 4 05-02-2007 06:09 AM
Cash Investments REWahoo FIRE and Money 2 10-01-2006 06:01 PM

» Quick Links

 
All times are GMT -6. The time now is 08:52 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.