Big differences between FIRECALC and New Retirement
- Thread starter palomalou
- Start date
I have been using the Fidelity Retirement tool for over a year as well.
For the NewRetirement tool (paid version), I have been using it for 6 months. I like the tool.
ncbill
Thinks s/he gets paid by the post
I've found Fidelity to be the most conservative as well via the much worse than average option.
I've tried a number of paid calculators but plan to keep only New Retirement once the others expire.
I've tried a number of paid calculators but plan to keep only New Retirement once the others expire.
Are you getting similar results with Fidelity and NewRetirement tool?
None are accurate! No calculator told me my portfolio would tank after I FIREd.
Seriously, unless there are actual math or dataset errors they are all accurate given the assumptions and methodology they use. None claim to be predictive (if they do, then they'd be the least "accurate" IMO) so accuracy is sort of a weird concept. I prefer FIREcalc and, for the visualization and perspective, Engaging-data's "Rich, Broke, or Dead?" calculator.
None are accurate! No calculator told me my portfolio would tank after I FIREd.
I prefer FIREcalc and, for the visualization and perspective, Engaging-data's "Rich, Broke, or Dead?" calculator.
Is this the tool referenced in your post?
https://engaging-data.com/will-money-last-retire-early/
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Keep in mind some of the tools will take you to $0 and call it a success. Some will tell when you are close to a failure if you dip under $1,000,000 and some like Fidelity’s will show you an end balance. So you have to understand what a successful result is for each tool.
Ok. Other than FireCalc, what retirement tools are folks using and trust the results?
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I used Fidelity’s retirement planner, FireCalc, FIcalc and a paid app ($4.99) called Retire Plan.
Ha! You nailed it. Everything i put in was the same, but the NR basic wouldn't let me say that we would sell our condo at about age 85 (looking at our parents, that was when it started not really working for them to live independently). I put in the sale of apartment as "windfall", and it worked. Made sense, because SS + 3% withdrawals are a bit more than we spend.
flyingaway
Full time employment: Posting here.
- Joined
- May 7, 2014
- Messages
- 991
I don't understand why people keep running these calculators again and again, and hope to get different results some day than another. Unless you change the input data, most calculators based on static data, e.g., historical data, will yield the same results. Those based on Monte Carlo simulation will yield different results every time you run it. None of them will be more correct or more accurate than the others. They all just have a reference value.
For me, a rough number is the 4% rule, adding some rooms and backup plans, then when I don't like y job, I retired at 57.
The only sure thing for any retirement calculation is to work until you die, assuming you can hold a job until that day.
For me, a rough number is the 4% rule, adding some rooms and backup plans, then when I don't like y job, I retired at 57.
The only sure thing for any retirement calculation is to work until you die, assuming you can hold a job until that day.
So what calculator are you using?
2HOTinPHX
Full time employment: Posting here.
I didn't want to start a new thread as there are a lot of good posts here.
Been looking for some software to help us decide if it makes sense for us to Fire. NewRetirement seems like a good one to help with Roth conversion and tax planning perhaps? This video gives a nice look at some of the features. Any feedback is appreciated.
https://youtu.be/IO-D2TCYzSA
Been looking for some software to help us decide if it makes sense for us to Fire. NewRetirement seems like a good one to help with Roth conversion and tax planning perhaps? This video gives a nice look at some of the features. Any feedback is appreciated.
https://youtu.be/IO-D2TCYzSA
I'm using Fidelity Retirement Tool, NewRetirement Planner +, and RightCapital. Each has it pros and cons. None are perfect. Here is my order of preference:
1. RightCapital - The Cashflow module is incredible. Step-by-step to data entry screeens to enter your data in the tool. The Tax module is really good as well.
2. NewRetirement Planner+ - Provides alot of flexibility in changing your assumptions (rate of return per asset, inflation, SS COLA, etc). Great reports and export of data into Excel. The developer is constantly adding new features.
3. Fidelity Retirement Tool - Very easy to input data. No flexibility in changing underlying assumptions.
Watched the video. Pretty good. I might give New Retirement another chance. Back several years ago I was a subscriber, but it had some serious bugs. Looks a lot better now.
My only quibble with the presenter is his use of 9% optimistic / 5% pessimistic assumptions. I assume he must be 100% stocks to have those parameters.
2HOTinPHX
Full time employment: Posting here.
Thanks for the feedback.
2HOTinPHX
Full time employment: Posting here.
What assumptions would you suggest using? Thanks for the reply....
Who knows. He doesn't say his asset allocation. I suppose a 100% stock allocation might achieve an average of 9%, but a 50/50 allocation probably won't get near that much. I think he's using 9% (optimistic) because that's close to the average over the years. I personally wouldn't want to base my plan on expecting 9%.
I'm using 5% in my planning - which might be too high considering I'm 33/67.
2HOTinPHX
Full time employment: Posting here.
So I looked at the NewRetirement software a little closer tonight and really liked the flow of it. The layout is pretty straightforward and user friendly. Still playing around with the free version. Seems like it's got a lot of flexibility to change the inputs and play around with different scenarios. It's the kind of stuff I would imagine a financial advisor would do for you. Some good charts are provided. We might upgrade to the paid version once we get the basics down. I really want to delve into the Roth conversion and tax planning options that seem to be available in the paid version.
LateToFIRE
Thinks s/he gets paid by the post
- Joined
- Jun 4, 2023
- Messages
- 1,171
I'm sure you'll get lots of input on this question. As a newbie to the whole "can I retire" question, I've been using a combo of my own homegrown Excel forecasting spreadsheet (for the flexibility and customization), FIRECalc (for its flexibility and historical/statistical simulation analysis), and Retiree Portfolio Model developed by some of the Boogleheads folks (for its thoroughness).
I would caution that the RPM model is a BEAST and very intimidating unless you: (1) Are extremely familiar with Excel, (2) Reasonably knowledgeable in the realm of personal finance or have a thirst to learn in detail, and (3) Have plenty of time on your hands. RPM takes me beyond what I could model on my own and has plenty of room for various types of inputs and modifications, but nothing is perfect - right now I'm frustrated trying to get it to compute state capital gains tax correctly - but most of the other free models out there barely address estimating taxes, leaving it to you to include in your budget estimate, so not complaining.
LateToFIRE
Thinks s/he gets paid by the post
- Joined
- Jun 4, 2023
- Messages
- 1,171
Cool visualization and this is the only calculator I've seen that incorporates longevity risk! But, seems far too simplistic to really rely on.
Flyfish1
Recycles dryer sheets
Before I retired this year - I used a whole bunch of different calculators - all have flaws.
I liked : Flexible Retirement Planner, and MaxFi retirement software. FIRE calc was way too simplistic. None were great - especially when you have income from different sources, real estate, dividends, etc..
I liked : Flexible Retirement Planner, and MaxFi retirement software. FIRE calc was way too simplistic. None were great - especially when you have income from different sources, real estate, dividends, etc..
Koolau
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I think all these various calculators are fine to play with and I'm sure each one helps to answer some different nagging questions. But when it's all said and done, using such calculators is a bit like measuring with a micrometer and cutting with an ax. NOTHING w*rks out in retirement the way you plan or expect. BUT you CAN go into it with the knowledge that (barring the apocalypse) you have enough.
I did all the "readers digest" or similar magazine calculators over the years (worst thing about them was they asked YOU what rate of return you were going to get - ridiculous.)
When I found FIRECacl, I was pretty well done. It showed I was in good shape. I played with some variables and eventually pulled the plug with the expectation that I would do fine. I did.
Honestly, the best handy-dandy calculator I've seen is the "4% rule." Of course, it's a bit sloppy, and you have to make a couple of caveats (40/60 to 60/40.) Maybe be ready to cut back a skosh if things get tough. Other than that, most people are good to go. No fuss, no muss.
Having said that. I think a lot of people like the process of calculating every detail which gives them a better feeling that nothing has been left to chance. Of course, everything is left to chance since we're talking about the future.
I did all the "readers digest" or similar magazine calculators over the years (worst thing about them was they asked YOU what rate of return you were going to get - ridiculous.)
When I found FIRECacl, I was pretty well done. It showed I was in good shape. I played with some variables and eventually pulled the plug with the expectation that I would do fine. I did.
Honestly, the best handy-dandy calculator I've seen is the "4% rule." Of course, it's a bit sloppy, and you have to make a couple of caveats (40/60 to 60/40.) Maybe be ready to cut back a skosh if things get tough. Other than that, most people are good to go. No fuss, no muss.
Having said that. I think a lot of people like the process of calculating every detail which gives them a better feeling that nothing has been left to chance. Of course, everything is left to chance since we're talking about the future.
COcheesehead
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Use all the calculators you want before retiring, but once in retirement all you have to do is compare your rate of return to your withdrawal rate.
