Firecalc - Portfolio composition section

[mikes425]

I appreciate FireCalc but I'm always half-doubting the result because I'm not sure if the selection options for Portfolio composition truly reflect my allocation and holdings.

What would be the best way of "x-raying" my PF to label the percentages so they conform to the category choices that are offered in FireCalc if I want to show my percentages of different equity and bond types. I could list my actual holdings and percentages here if anybody might want to suggest how to categorize it to "fit" the FireCalc data entry options as closely and accurately as possible.

Thanks!

 

[JackJester]

FireCalc is not real sophisticated when it comes to modeling a good approximation of your own portfolio breakdown. For that function I use portfoliocharts.com to select my specific ETF funds in certain percentages to model a Safe Withdrawal Rate (SWR). I think the historical backtesting is similar to what FireCalc uses. You can select a specific portfolio that might be similar to yours, and then within it, you can select specific Vanguard, Schwab, or Fidelity funds. I think it's all ETFs, but easy to find one to match a MF you might have. Here's the link of the various pre-defined portfolios: https://portfoliocharts.com/portfolios/
You can either become a member and create your own 'MyPortfolio'. Or you can just find one of the pre-defined portfolios that is close to yours and tweak the %s and fund types. I find that it is valuable to compare FireCalc's % of success (which uses a somewhat generic AA) vs portfoliocharts SWRs (where you build it with specific AA funds from specific brokers), and the tool also provides many other charts types.

 

[marko]

I view FC as a more of a guide and just use "Total Market". I don't expect deep granularity or "to the penny" accuracy.

Unless your portfolio is truly unique, my view is that you'll get a "close enough" result.

 

[mrfeh]

I view FC as a more of a guide and just use "Total Market". I don't expect deep granularity or "to the penny" accuracy.

Unless your portfolio is truly unique, my view is that you'll get a "close enough" result.

+1

OP - just use the "total market" option and specify your percentage of equities.

 

[COcheesehead]

Another option that is also free is FI Calc. It allows you to better define your portfolio, change it over time and choose many different withdrawal strategies. You might try that as well.
https://www.google.com/url?sa=t&rct.../ficalc.app/&usg=AOvVaw3GAmy6QoL742yzBBXIWhgi

 

[Koolau]

FireCalc is a bit like most such calculators. It gives a lot of "decimal places" but you're kidding yourself if you count on them. SWR of 3.96 is the same as 4.04 IMHO. IOW, its 4.0 Measure with a micrometer and cut with an ax. No problem.

 

[Bigdawg]

I view FC as a more of a guide and just use "Total Market". I don't expect deep granularity or "to the penny" accuracy.

Unless your portfolio is truly unique, my view is that you'll get a "close enough" result.

^This. Plus if your plan depends on being gnat's a$$ accurate then you probably are cutting it too close. I'm all about planning but there are too many variables to be exactly on point. As we said in the Corps; your initial plan is just a beginning point to start your deviations. No plan survives first contact, etc...

 

[Gumby]

^This. Plus if your plan depends on being gnat's a$$ accurate then you probably are cutting it too close. I'm all about planning but there are too many variables to be exactly on point. As we said in the Corps; your initial plan is just a beginning point to start your deviations. No plan survives first contact, etc...

I wage retirement the way the US Army, at least, wages war. Use overwhelmingly superior firepower. If you throw 10,000 rounds downrange in 2 minutes, you might hit something. You don't have to be all that accurate. So I just waited until FIRECalc said I could spend twice as much as I do and still get 100% success. (It was always my impression that the Corps cuts things a lot finer; 1 shot = 1 hit.)

 

[marko]

^This. Plus if your plan depends on being gnat's a$$ accurate then you probably are cutting it too close. ..

+1. If ten or fifteen percent is the difference between success and failure it might be good to revisit the whole idea.

 

[Bigdawg]

I wage retirement the way the US Army, at least, wages war. Use overwhelmingly superior firepower. If you throw 10,000 rounds downrange in 2 minutes, you might hit something. You don't have to be all that accurate. So I just waited until FIRECalc said I could spend twice as much as I do and still get 100% success. (It was always my impression that the Corps cuts things a lot finer; 1 shot = 1 hit.)

Don't believe all of our PR. We say one shot, one kill but we throw lots of rounds down range also.

I agree on your 2X approach regarding FIRECalc. We are at least 2X re: essentials. Discrectionary is another story. DW is talking about all inclusives in Aruba at 700+ per night. I asked her where she was hiding the crack pipe.

 

[Alex The Great]

I like this calculator:
https://engaging-data.com/will-money-last-retire-early/

It always say 100% when I enter my miserable data there.
But both FI Calc and FireCalc get really angry with my data and give me an impression I never retire.

 

[deserat]

I wage retirement the way the US Army, at least, wages war. Use overwhelmingly superior firepower. If you throw 10,000 rounds downrange in 2 minutes, you might hit something. You don't have to be all that accurate. So I just waited until FIRECalc said I could spend twice as much as I do and still get 100% success. (It was always my impression that the Corps cuts things a lot finer; 1 shot = 1 hit.)

Hehehe-just love the Army vs Marines jabs. USAF here ;-)

 

[mrfeh]

I like this calculator:
https://engaging-data.com/will-money-last-retire-early/

It always say 100% when I enter my miserable data there.
But both FI Calc and FireCalc get really angry with my data and give me an impression I never retire.

That sounds like you are paying attention to tools that tell you what you want to hear and avoiding those that don't.

I don't know anything about the methodology behind the tool you mention above, but firecalc is well regarded.

 

[marko]

That sounds like you are paying attention to tools that tell you what you want to hear and avoiding those that don't.

I don't know anything about the methodology behind the tool you mention above, but firecalc is well regarded.

A man with one watch always knows what time it is. A man with two watches is never sure.