Useful Links

intercst · 12-20-2004, 10:47 AM

http://flagship2.vanguard.com/VGApp/...62004_ALL.html

intercst

brewer12345 · 12-20-2004, 10:56 AM

Definately not designed with the EARLY retiree in mind - told me I couldn't use it because I am under 35. Looks pretty unsophisticated, anyway.

intercst · 12-20-2004, 11:16 AM

Quote:

Definately not designed with the EARLY retiree in mind - told me I couldn't use it because I am under 35. *Looks pretty unsophisticated, anyway.

I just ran the calculator for a 60% stock/40% bonds portfolio for a married couple taking $3,000/month after tax from a $1 Million nest egg and a 15% marginal tax rate.

It gave me about a 95% survivability for 30 years.

I don't know how the calculator handles taxes. A married couple with $40,000 income and the standard deduction would pay a bit over $3,000 in Federal income taxes.

It would be easier if we could input "pre-tax" income.

intercst

arrete · 12-20-2004, 12:33 PM

What I don't understand about this tool is how to separate what you get from tax-deferred accounts and what you get from your after tax accounts. As of now, the tax structure can be very different, i.e. personal marginal rate versus capital gains rate.

It's not very sophisticated, but maybe the idea is to just get real neophytes used to the idea that negative savings isn't going to get them far in retirement.

arrete

12-20-2004, 01:23 PM

Quote:

What I don't understand about this tool is how to separate what you get from tax-deferred accounts and what you get from your after tax accounts.

You're not alone! - I could not even see where you could input any accounts other than tax-deferred!

With my just my tax-deferred accounts, I have to Call Dr. Kevorikan in about 15 years

12-20-2004, 01:35 PM

I used to heavily emphasize the maximum use of
"tax deferred" accounts. However, it is now a non-issue
for the most part as I pay no personal federal taxes
anyway. Totally unexpected when I began, but a most welcome
condition.

JG