wmc1000
Thinks s/he gets paid by the post
An extra 10% buffer for us on top of FIDO's automatically calculated tax is comfort enough for us! YMMV
An extra 10% buffer for us on top of FIDO's automatically calculated tax is comfort enough for us! YMMV
Are folks finding that there expenses are more or less during their retirement years? As I look over my expenses now (not retired yet), there is a lot of opportunity to cut some expenses.
I love all the feedback on the Fidelity tool. Keep the responses coming.
My only input would be: A tool provided by a company that wants to hold your investment dollars is more likely to be conservative (maybe overly conservative.) It would be to their advantage if you save more than you really need or retire later than you need to. I'm not suggesting an evil intent so much as a natural tendency to have you save more - since it would be with them. FIRECalc has no such built in bias toward over saving. Of course, I could be wrong about the FIDO tool specifically so YMMV.
My back of the envelope tool is still to multiply one's maximum spend rate (beyond guaranteed incomes like SS or pension) by 25. If you have at least that much in assets, you're probably okay (assuming you can live on a 4% withdrawal.) At that point, check two or three "tools" for more comfort level. As always, YMMV when it comes to planning a retirement date.
For me, if this tool is telling me that I can retire now based on the inputs I provided and the tool is conservative as well, I feel good that I can retire at any time now. The only question for me is when. I really need to plan out what I would do with all the free time during retirement.
Are folks finding that there expenses are more or less during their retirement years? As I look over my expenses now (not retired yet), there is a lot of opportunity to cut some expenses.
It's easy to use, and even with the most conservative view tells me I'm in great shape. It gives me the opportunity to add a one-time future expense (pool in my case) when I edit my mortgage expense, so that's nice. I wish it had the opportunity to do more than one future expense (like a wedding or one time purchase of a vehicle, or what have you).
Unpaintedhuffhines, I have many one time lumpy expenses added into the Fidelity tool with no issues.
My Fidelity Wealth Management Advisor introduced the Fidelity Retirement Analysis tool to me during a retirement planning session last week. Based on the numbers inputted (income & expenses, etc.), at the end of the plan, I still have money left over using the significantly below average market. I even estimated my discretionary expenses (inputted in the Detailed Expenses section) on the high side.
The Fidelity advisor gave me the thumbs up that I can retire today. I'm very cautious and want to be sure about the decision to retire.
For those that have used the tool, how accurate is it? Can you trust the analysis that is given by the tool?
Thanks
For me, if this tool is telling me that I can retire now based on the inputs I provided and the tool is conservative as well, I feel good that I can retire at any time now. The only question for me is when. I really need to plan out what I would do with all the free time during retirement.
The threads and posts on this site about being bored in retirement are minimal.
Just came back today from a 13 day vacation. Now back to retirement and playing Pickleball tomorrow.
I'm looking at the table view vs the chart view. I noticed on income like Pension and Dividend income that that amount is decreasing year by year. Can someone explain that. The pension amount should be the same amount until I die.
ok. I found what is happening. When I edit the income source, if I check "Adjust to future dollars", the pension amount is the same until I die.
Any advice on whether that option should be selected?
The overall analysis has "current dollars" vs. "future dollars". I always use current dollars for that summary.
The pension amount will reduce because "current dollars" will show that your pension is decreasing in amount because of inflation. So it is correct to show decreasing amount unless your pension has COLA.
If your pension has COLA, I think you want to check off "Adjust to future dollars".
Ok. I need to check my pension plan for COLA.
No COLA on my pension plan.