WealthRuler / TDAm report
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 04-14-2008, 05:56 PM #2 Moderator Emeritus   Join Date: Jan 2007 Location: New Orleans Posts: 43,103 That was fun. I specified a 36 year retirement, and with my conservative AA, it predicts success with an SWR of 3.8%. I guess that's reasonable. Like you said, it give us another data point to compare our assumptions and numbers with. I would never trust any of these calculators, even our beloved FireCalc, to be more than a tool in planning ER. (Ultimately, the responsibility for my decisions is mine.) It's reassuring to see that another calculator has given my plan the green light. __________________ __________________ I have drunken deep of joy, And I will taste no other wine tonight. ― Percy Bysshe Shelley
 04-14-2008, 11:28 PM #3 Moderator   Join Date: May 2007 Location: Genève Posts: 11,863 I get weird results. If I understand well the methodology, all input and output numbers are in today's dollars. According to the calculator, for a gross annual retirement income of \$66,000, my target asset number is almost \$2.35M at retirement. So the SWR would be 2.8% (and that's for high risk tolerance!) and it means a retirement age of 53-58 depending on market performance (and therefore a 37 to 42 year long retirement). The target asset number and retirement age are strikingly higher than what other calculators have returned for my situation. So I looked around and it looks like, the SWR depends heavily on your retirement age. For example, for a plan extending to age 95, if I were to retire at 40, the SWR allowed would be 2.07% (for high risk tolerance). At age 45, it would be 2.23%. At age 50, it would be 2.48%. At age 55, 2.67%. At age 60, it would be 3%. At age 65 (with 30 years left in retirement), it would be 3.5% (again it's the high risk scenario). No 4% SWR anywhere... As a comparison, FIREcalc would allow me to retire at age 45 (50 year retirement) with a SWR of 3.53% (instead of the 2.23% for TD's calculator) with a success rate of 99%. __________________ 45 years old, single, no kids. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41). No pensions. Current AA: real estate 65% / cash 35%; Current WR: < 1.5%
04-15-2008, 06:55 AM   #4
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Location: Washington, DC
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Quote:
 Originally Posted by FIREdreamer I get weird results. If I understand well the methodology, all input and output numbers are in today's dollars. According to the calculator, for a gross annual retirement income of \$66,000, my target asset number is almost \$2.35M at retirement. So the SWR would be 2.8% (and that's for high risk tolerance!) and it means a retirement age of 53-58 depending on market performance (and therefore a 37 to 42 year long retirement).
I think if you specify an "income" the calculator takes that as an income prior to retirement. When I specified my pension as an "income" coupled with my portfolio and the supplemental withdrawals we need, I failed miserably and the calculator told me I needed a boatload of extra assets. When I removed my "income" I was successful.
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 04-15-2008, 07:10 AM #5 Thinks s/he gets paid by the post   Join Date: Mar 2006 Location: Houston Posts: 4,337 Most brokerages and financial advisors have a vested interest in keeping you hitched to the plow and socking money away with them to manage. I would expect TD Ameritrade to not be any different than the other broker related sites that can be used to calculate "the number." The nice thing about FIRECalc is that it doesn't have a vested interest in our leaving our money with them as long as possible. It also can use "real" if only historical data. The ugly truth of this retirement stuff is at some point we have to pull the cord (or someone pulls it for us). Then we buy our ticket and take our chances. Watching the market huff and puff makes people anguish about running out of money unless they are blessed with major COLA's pensions. I wouldn't run my life with a calculator and especially with a brokerage's calculator. There are too many variables they don't include and they certainly can't predict the future. Ultimately, they can only show if you are "close." I believe all plans need a serious "what if the market tanks" option to control spending and/or return to w*rk. __________________ The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
 04-15-2008, 07:31 AM #6 Thinks s/he gets paid by the post   Join Date: Jul 2006 Location: Denver Posts: 3,021 Vanguard has a similar one run by Financial Engines. Any idea how the TDA one compares to the VG tool?
 04-15-2008, 08:17 AM #7 Give me a museum and I'll fill it. (Picasso)Give me a forum ...   Join Date: Jun 2005 Posts: 9,840 I have used Financial Engines via the Vanguard site. It is way more complicated: you must enter all your investments via their ticker symbols while for WR you enter your amounts and percentages of stocks, bonds, cash. It's true that you need to somehow know your percentages, so I used mine from M* portfolio X-ray. The Vanguard FE is persistent, so what you entered previously is there. The results basically suggest changes in your funds and not necessarily how much more to save and invest. For me, the suggested changes were always the same bogus answer: sell everything and buy Vanguard intermediate term bond fund. In the end, I judged FE as basically useless, but I think some others like it.
 04-15-2008, 08:38 AM #8 Full time employment: Posting here.   Join Date: Sep 2007 Posts: 514 One of the benefits of my profession (computer programmer) is the ability to write my own projection software. I've written a relatively simple program that allows me to "tweak" more than a dozen variables specific to mine and my wife's particular circumstances. Plus, I trust it a lot more, since I know exactly how the numbers are being crunched.
04-15-2008, 04:55 PM   #9
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Quote:
 Originally Posted by kombat One of the benefits of my profession (computer programmer) is the ability to write my own projection software. I've written a relatively simple program that allows me to "tweak" more than a dozen variables specific to mine and my wife's particular circumstances. Plus, I trust it a lot more, since I know exactly how the numbers are being crunched.
I've written several simple programs. The "unpleasant truth" (that is real) is that everything hinges on your assumptions of inflation and return. We all need a "what if" plan for when inflation exceeds our expectations (and historical results) and stock market returns falter (below historical results).

My plan is to be ultra-conservative with basic living expenses and use the "resonable" or uber-retruns to fund travel and excessive entertainment.
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