FIRECalc Spending for Future Retirement Question

[SMiller]

Newb here who has searched for this answer in the forums and can't find it, so apologies if this is a common question.


When I run FIRECalc, I've set the time frame (Years) to 45 years. I plan on retiring in 2029, so 11 years into the future. When I run FIRECalc, I get two graphs. The top is Year By Year Portfolio Balances. It has a time span of 45 years. The info at the top tells me I'll continue contributing to my retirement accounts for eleven years, then the withdrawals begin. Great, makes sense. The bottom graph (because I'm using Bernicke's Reality Retirement Plan on this one) shows Year-By-Year Spending. However, it is also a 45 year time span with spending beginning in year one. Shouldn't my spending for the first eleven years be $0? Or am I missing something obvious? Can't quite figure this one out.

Thanks in advance!

[USGrant1962]

I think you found a buglet. It appears that it is just displayed wrong in the second graph. If you do a test with a very high spend (e.g., half your portfolio), and say you retire in 10 years, you will see the collapse in your portfolio starting at 10 years in all spending models. And, the 95% rule case shows spending plunging as well.

In all cases, the model does not appear to be withdrawing the initial spending from the portfolio until you say you are retired, so the success rate should be correct.

Bernicke is showing calculated spend, but seems to be drawing from the portfolio correctly (zero before retirement).

OH, and welcome to the Forum!

[SMiller]

Thanks! I ran your test, and just as you suspected, I can see that my portfolio falls dramatically at year eleven.


Much appreciated!