Portfolio Lump Sum Changes Tab - Gross or Net ?

[gamboolman]

For the Portfolio Changes Tab - do we input Gross or Net after Tax values for any Lump Sum Additions/Deductions ?

For example(s) - I will be paid for Lump Sum amount when I retire. Gross = $100K and Net is ~$76K.
Do I enter $100K or $76K ?

I can't seem to find this answer in reading? Probably me just not reading/comprehending properly.

Thank you for your help and assistance.

gamboolman....

 

[latexman]

FIRE Calc does not do taxes. You have two choices. Enter Gross and include the taxation as an expense, probably using Off Chart Spending, or enter net and do not include the taxation. I think it's simply a matter of how you want to document it for future reference. That's for taking the cash out, which sounds like what you want to do.

You can also roll the gross lump sum into an IRA? Then, this may affect taxes by allowing you to spread the withdrawals over several/many years.

Whatever the plan is, it will affect the taxes and how you should treat that as an expense in FIRE Calc.

 

[pb4uski]

I would enter it net. I assume that this lump sum that you will be receiving is not a defined benefit pension plan lump sum, but the nature of the lump sum is such that the tax can't be deferred so the lump sum is taxable.

 

[gamboolman]

Thank you for the advise / clarifications.

We'll use Net Dollars based on estimate taxes.

Much appreciated !

gamboolman....