FIRECALC questions

[omni550]

I'm running various scenarios in FIRECALC and have a couple of simple questions of clarification.

When is asks me about "Annual Spending"...does that include income taxes?

Also, when it tells me I can take a withdrawal of 5.77% for a 95.8% success rate...does that 5.77% include the pension amounts that I entered as well as withdrawals from my savings?

TIA,

omni

 

[retire@40]

I'm running various scenarios in FIRECALC and have a couple of simple questions of clarification.

When is asks me about "Annual Spending"...does that include income taxes?

Yes

 

[REWahoo]

When is asks me about "Annual Spending"...does that include income taxes?

FIRECalc doesn't know what the money you are withdrawing is spent on. You will have to pay taxes and the money will have to come from withdrawals from your savings, pension, SS income, etc....so the answer is yes.

Also, when it tells me I can take a withdrawal of 5.77% for a 95.8% success rate...does that 5.77% include the pension amounts that I entered as well as withdrawals from my savings?

The withdrawal % FIRECalc gives you is the initial (first year) only. If you entered in future income from SS or a pension, it assumes you will use those amounts to reduce how much you withdraw from your savings as these income streams kick in over time.