Fidelity Planner Projected Income & Target Score

[momoney]

On the Portfolio page on my Fidelity account it shows a "You may have: $XXX/month".

Any idea if this monthly amount is calculated off of average market returns?

Separate question:
If your Fidelity planner retirement score is at 150, is that considered a pretty conservative spending plan to cover your retirement needs?

 

[RetireIn2030]

We use the Fido Planner page often. I think it takes into account your asset allocation and historic returns of it if you have those selected within the planner. If you do not, I'm unsure if its using historical S&P 500 returns or not.

The score of 150 is very very high. Did you plug in your estimated amount of monthly expenses in the page? There is a section that you fill in your estimated amounts and can utilize other options as well such as long term insurance, etc.

 

[momoney]

We use the Fido Planner page often. I think it takes into account your asset allocation and historic returns of it if you have those selected within the planner. If you do not, I'm unsure if its using historical S&P 500 returns or not.

The score of 150 is very very high. Did you plug in your estimated amount of monthly expenses in the page? There is a section that you fill in your estimated amounts and can utilize other options as well such as long term insurance, etc.

When I open the planner it defaults to "significantly below average" for returns.

Yes, I entered essential expenses and enough to be comfortable expenses.

What score are most people aiming for when they use the tool?

 

[RetireIn2030]

From Fidelity:

Significantly Below Average Market: A significantly below average market is defined as the 90% confidence level of estimated future balances and/or estimated future income. The 90% confidence level represents "significantly below average market conditions" with 10% of all hypothetical scenarios tested performing worse. This means that in 90 out of the 100 market scenarios tested a hypothetical portfolio similar to yours performed at least as well as the results shown and 10 out of 100 performed worse than the results shown.

Below Average Market: A below average market is defined as the 75% confidence level of estimated future balances and/or estimated future income. The 75% confidence level represents "below average market conditions" with 25% of all hypothetical scenarios tested performing worse. This means that in 75 out of 100 market scenarios tested a hypothetical portfolio similar to yours performed at least as well as the results shown and 25 out of 100 performed worse than the results shown.

Average Market: An average marked is defined as the 50% confidence level of estimated future balances and/or estimated future income. The 50% confidence level represents "average market conditions" with 50% of all hypothetical scenarios tested performing worse. This means that in 50 out of 100 market scenarios tested a hypothetical portfolio similar to yours performed at least as well as the results shown and 50 out of 100 performed worse than the results shown.

 

[RetireIn2030]

We expect a score of 90% or better. Currently ours is 104% with our targets.

 

[Al18]

With a score of 150, either you missed some expenses or you may want to retire soon.
Great job.

 

[momoney]

We expect a score of 90% or better. Currently ours is 104% with our targets.

When I edit my expenses to equal the "You may have: $XXX/month" number, my score drops down to 100. This gives me a lot more discretionary spending each month. Probably more than I can imagine spending unless it was an emergency.

 

[Dtail]

Kind of similar to Firecalc, I believe that most folks using the Fidelity calculator shoot for a 90 and over score.
A 150 score would be considered a very high score. Effectively it is telling you that you have 50% more investment assets than is needed.
Your maximum spending is your expenses multiplied by your score.

 

[momoney]

With a score of 150, either you missed some expenses or you may want to retire soon.
Great job.

150 score maintains current frugal lifestyle that got me to where I am. Still trying to reckon with what is actually enough to enjoy retirement.

 

[latexman]

IIRC, 150 means you can spend 150% more than modeled, or 1.5X.

 

[djsander]

Where is the retirement planner score? It used to show as a meter on the first page and has been gone awhile. Could it be because I’m retired and no longer projecting this?

 

[momoney]

Where is the retirement planner score? It used to show as a meter on the first page and has been gone awhile. Could it be because I’m retired and no longer projecting this?

Yes, it goes away once you are considered retired.

 

[djsander]

Yes, it goes away once you are considered retired.

Thanks, that makes sense. Just the million pages of information at Fido makes it hard to figure some of this out.

 

[JohnDoe]

On the Portfolio page on my Fidelity account it shows a "You may have: $XXX/month".

Any idea if this monthly amount is calculated off of average market returns?

Separate question:
If your Fidelity planner retirement score is at 150, is that considered a pretty conservative spending plan to cover your retirement needs?

Our score is 150 too, but I have a hard time thinking it's enough. I set the returns to underperform as well and it says we'll end our 30-35 year plan with 1MM+.

I feel like LTC is the biggest question mark and there isn't any good LTC insurance that covers enough and doesn't give you a hassle to payout (from all that I have read).

 

[G-Man]

Our score is 150 too, but I have a hard time thinking it's enough. I set the returns to underperform as well and it says we'll end our 30-35 year plan with 1MM+.

I feel like LTC is the biggest question mark and there isn't any good LTC insurance that covers enough and doesn't give you a hassle to payout (from all that I have read).

Well if you have 1MM+ at end of your plan, you may be able to self-insure.

 

[Finance Dave]

Ours shows 150+ also. But doesn't consider some large expenses we plan to have such as relocating to an area where the houses are double the cost, a new sports car, etc....hard to model those "one time" expenses.

 

[G-Man]

Ours shows 150+ also. But doesn't consider some large expenses we plan to have such as relocating to an area where the houses are double the cost, a new sports car, etc....hard to model those "one time" expenses.

You can model one-time expenses in the Expense section. You can specify a start and end date for each of the one-time expenses.