Spending input in FIRECalc

[ready53]

When you input your projected annual spending in FIRECalc, is that amount after tax?

 

[Midpack]

When you input your projected annual spending in FIRECalc, is that amount after tax?

Nope. FireCalc does not factor in taxes, you have to estimate tax impact yourself. IOW you have to allow for taxes in your spending along with everything else.

There are too many variables to build in taxes, especially for 20-40 year planning periods, and you'd have to be able to predict future tax rates/thresholds/deductions - no one could possibly do it.

 

[rodi]

What Midpack said. The spending is "all in"... so it should include taxes, health insurance, everything. It should be the total! Then you can enter income streams (pensions, SS) on another tab.

All inputs are gross, not net.

 

[ready53]

Thanks Midpack and rodi for your replies. Shouldn't that be clearly stated where one enters "Spending" in the "Start Here" box? Usually when I think of spending I don't put income taxes in that category. I do put property taxes and sales taxes there, but not income taxes.