FIRECalc inputs - Today's dollars? Mix?

[dirtbiker]

I've been using the awesome FIRECalc application to do some projections, but I'm unsure of a couple of things.

When I input spending on the "start here" tab:
1. Is this in today's dollars? And then inflation corrected? Or is this the actual amount I will be spending in 2040 (as an example) when I retire.
2. Is the spending value the same as my withdrawal value? Or will the calculator determine my withdrawals based on my spending input plus whatever retirement income I input, and the result is my withdrawal?

When inputting pension incomes, is that in today's dollars and inflation adjusted?

 

[CardsFan]

Everything in Firecalc is in today's dollars. Even the out put you receive.

For spending, enter what you intend to spend (including all taxes). Firecalc will take into account any retirement income (SS, pension, etc), and will give you a probability based on that.

You can use the investigate tab to back calculate a spending amount based on a probability you select.

 

[Dtail]

The Pension income is inputted in today's dollars and there is a checkbox to the right of the input where you decide if the income will be inflation adjusted by checking the box; if not then uncheck the box.

 

[dirtbiker]

Wow! Everything is in today's dollars!? The output seems to be pretty optimistic if in today's dollars. Good to know. Thanks

 

[REWahoo]

The output seems to be pretty optimistic...

One of the basic premises of FIRECalc is to be realistic as it uses actual history.

 

[downrod]

I am questioning the same thing. I know that I can check the box for inflation adjusted, but does it also adjust the spending amount prior to retirement date?

Example. I put in 100K for spending but I do not retire until 2023. Does FireCalc add the inflation value to the 100K. Inflation at 3%
My first withdraw would need to be 112,550.
Or do I have to put in the 112,550 and then FireCalc adjusts for inflation from that number?

 

[DogGone]

Well this is a very pleasant surprise... today’s dollars... I played with so many models... not all clear.

 

[Dtail]

Well this is a very pleasant surprise... today’s dollars... I played with so many models... not all clear.

IMO most of the retirement models are displayed in today's dollars. The Fidelity model can be displayed in current and future mode.