Mid Year starting Point

[al4trade]

Does Firecalc take into account when during the year we are running the program or does it assume that we are always starting at the beginning of the year?

When running Firecalc and you are starting mid-year, should you (1) enter the amount that you expect to spend for the balance of the initial year and then adjust your annual expenses upward starting in year #2 or (2) enter your annual expenses and Firecalc recognizes when during the year the calculation is made.


Thanks

 

[Nords]

Does Firecalc take into account when during the year we are running the program or does it assume that we are always starting at the beginning of the year?

While we're waiting for Dory's answer, I should note that if your ER plans depend on this distinction then your portfolio is probably too close to the red line...

 

[Sheryl]

This question is bothering me too - but specifically because I'm putting in a retirement date of 2008, and saying we will save $45,000 per year until then. But most of the 2006 savings are already included in my "how much do you have" figure, since we have already made full Roth contributions, and are close on 401(k)

If FireCalc is adding $90,000 to the balance rather than $45,000 that could make a big difference, I guess.

 

[kcowan]

I assumed that it was the same month, i.e. August 2008 if you are doing it now. You would need to adjust for any partial year.