Firecalc Mortgage - include in Pensions/Off chart

[Born2Fish]

I enter the following in Firecalc:

Start Here:
Spending: Leave blank
Portfolio: 650000
Years: 35

Other Income/Spending:
SS: Me, 27300, 0 year
Spouse, 12000, 5 year

Pension/Off Chart
Pension Income Selected: 7400, 0 years

Not Retired: 0
how much to add: 0 (already retired)

Spending Models:
Select CPI
Select Constant spending power


Your portfolio:
.18%
Total Market, Long interest rate
62% stocks

Investigate:
Success Rate 100%
Select Spending Level

Press "Submit"
Firecalc Results:
A spending level of $63,556 provided a success rate of 100.0%


Now, I change ONLY the following:

Pension/Off Chart
Pension Income Selected: 7400, 0 years
Off Chart Spending, 15400, 0 (immediate)
Pension Income: 11600, 30 (offset mortgage portion of payment once paid off)

Press Submit:

Firecalc Results:
A spending level of $55,942 provided a success rate of 100.0%

The difference in 100% spending level is around $7600 while the payment is $15400.

Does this mean I can only spend $56k TOTAL?

Or does it mean that I can spend 56K and make the mortgage payment, too - for a total spending rate of ~$71,400?

I found that the "$11600 starting after 30 years" makes a negligible difference.

 

[ERD50]

But you also need to increase your portfolio by the mortgage amount.

Yes, the offset won't have much affect for this scenario, it is only in effect for the last 5 years.

And the mortgage and offset should be non-inflation adjusted.

Hey, I think I actually got effect/affect right - somewhere a nun is smiling

-ERD50

 

[Born2Fish]

But you also need to increase your portfolio by the mortgage amount.

Yes, the offset won't have much affect for this scenario, it is only in effect for the last 5 years.

And the mortgage and offset should be non-inflation adjusted.

Hey, I think I actually got effect/affect right - somewhere a nun is smiling

-ERD50

Do you mean increase my "Spending amount" by the mortgage amount? ie, Safe spending amount including the fixed rate mortgage would actually be "$71400"?.

 

[Dtail]

But you also need to increase your portfolio by the mortgage amount.

Yes, the offset won't have much affect for this scenario, it is only in effect for the last 5 years.

And the mortgage and offset should be non-inflation adjusted.

Hey, I think I actually got effect/affect right - somewhere a nun is smiling

-ERD50

I would check again your use of "affect" in the bolded above by me.

 

[Major Tom]

I would check again your use of "affect" in the bolded above by me.

+1. Sorry to be the bearer of bad news. Looks like those nuns might be gearing up to dish out some corporal punishment

 

[Born2Fish]

I would check again your use of "affect" in the bolded above by me.

+1. Sorry to be the bearer of bad news. Looks like those nuns might be gearing up to dish out some corporal punishment

Thanks - I just sprayed water all over the screen!!!

 

[ERD50]

I would check again your use of "affect" in the bolded above by me.

+1. Sorry to be the bearer of bad news. Looks like those nuns might be gearing up to dish out some corporal punishment

Thanks - I just sprayed water all over the screen!!!

I just felt the crack of a ruler across my knuckles!

I guess I'll never get it (and I never say never!)!

Yes, the offset won't have much affect for this scenario, it is only in effect for the last 5 years.

OK, try again, w/o googling...

Yes, this scenario is not affected much by the offset, as it is only in effect for the last 5 years.

-ERD50

 

[braumeister]

.

 

[ERD50]

Do you mean increase my "Spending amount" by the mortgage amount? ie, Safe spending amount including the fixed rate mortgage would actually be "$71400"?.

No, the portfolio.


IOW, if you have a $XXX thousand mortgage, that $XXX thousand is now in your portfolio earning money (at least historically, over 20~30 years).

If you don't have a mortgage, that $XXX thousand is locked up in the house.

-ERD50

 

[Born2Fish]

No, the portfolio.


IOW, if you have a $XXX thousand mortgage, that $XXX thousand is now in your portfolio earning money (at least historically, over 20~30 years).

If you don't have a mortgage, that $XXX thousand is locked up in the house.

-ERD50

Oh, yes, I get it!

I missed the forest for the trees!!