Question about delaying use of assets.

[PandaBear]

Dh and I are fortunate to each have a pension and dh gets social security.
We also have an IRA.

I’d like to run FIRECalc for the 30 years, but not start accessing our assets for 2-3 years.

I’m not quite sure how to do this, or if I even can do this. I tried just starting our retirement later and running it for less years, but my percentage of success went down versus just accessing it right away.

Is there a way to do this?

Thanks.

 

[N02L84ER]

You can exclude the IRA amount initially and then add it as "Pension Income" starting in year 2024 or 2025 on the Other Income tab.

 

[latexman]

Did you check the box "provide data and formulas in a spreadsheet format, using 1960 as the starting retirement year in the spreadsheet showing a full retirement cycle (must be on or after the first year data were available, and early enough to show a full cycle)"? You should be able to see how much $ came from the IRA during that 2-3 years. Then, reduce your Spending (1st tab) to cover that so the IRA is not accessed, and then put it back in using "Off Chart" Spending (2nd tab) 2-3 years later than now.

 

[ERD50]

I’d like to run FIRECalc for the 30 years, but not start accessing our assets for 2-3 years.

What does that mean, exactly?

Does it mean your spending is covered by your pension/SS in the first 2-3 years? If so, and if pension/SS keeps up with inflation, you'll never draw from your IRA anyhow.

If your spending is > pension/SS, then where does the money come from? Or is your spending changing?

You can do a lump sum addition (Portfolio Changes tab), try adding that in year 3 (keeping it out of your starting portfolio).

-ERD50

 

[PandaBear]

You can exclude the IRA amount initially and then add it as "Pension Income" starting in year 2024 or 2025 on the Other Income tab.

I didn’t do that because I assumed adding it under pension income would give me credit every year and it’s just a lump sum of savings.

 

[PandaBear]

Did you check the box "provide data and formulas in a spreadsheet format, using 1960 as the starting retirement year in the spreadsheet showing a full retirement cycle (must be on or after the first year data were available, and early enough to show a full cycle)"? You should be able to see how much $ came from the IRA during that 2-3 years. Then, reduce your Spending (1st tab) to cover that so the IRA is not accessed, and then put it back in using "Off Chart" Spending (2nd tab) 2-3 years later than now.

I didn’t realize that. I will play with that. Thanks!

 

[PandaBear]

What does that mean, exactly?

Does it mean your spending is covered by your pension/SS in the first 2-3 years? If so, and if pension/SS keeps up with inflation, you'll never draw from your IRA anyhow.

If your spending is > pension/SS, then where does the money come from? Or is your spending changing?

You can do a lump sum addition (Portfolio Changes tab), try adding that in year 3 (keeping it out of your starting portfolio).

-ERD50

Yes, essentially our pensions and social security cover our expenses right now. (Or rather, they will when I retire in June). However, our pensions are not increased with inflation.

I wanted to play and see what happens when I I don’t access it a couple of years.

Thank you!

 

[pb4uski]

Dh and I are fortunate to each have a pension and dh gets social security.
We also have an IRA.

I’d like to run FIRECalc for the 30 years, but not start accessing our assets for 2-3 years.

I’m not quite sure how to do this, or if I even can do this. I tried just starting our retirement later and running it for less years, but my percentage of success went down versus just accessing it right away.

Is there a way to do this?

Thanks.

If you don't want to use you assets for 2-3 years and are also not receiving pension or SS for those years, go to the Not Retired? tab and input the year that you want to start using your assets.

The last part doesn't make sense... if you run it for less years, all else being equal your success rate should go up, not down. If I run the default the success rate is 95% and if I change the years from 30 to 25 then the success rate is 98.4%.

 

[Out-to-Lunch]

It still isn't clear to me what spending model you are trying to simulate. Do you plan to increase your real spending in a few years, or keep it constant?

Money is fungible.

 

[mountainsoft]

Dh and I are fortunate to each have a pension and dh gets social security. We also have an IRA.

I’d like to run FIRECalc for the 30 years, but not start accessing our assets for 2-3 years.

I’m not quite sure how to do this, or if I even can do this. I tried just starting our retirement later and running it for less years, but my percentage of success went down versus just accessing it right away.

You may also want to try the Flexible Retirement Planner. I prefer the downloadable version.

https://www.flexibleretirementplanner.com/wp/download/

We're in a similar situation, though a bit different than you. We'll live off of my wife's pension and our savings until we can start drawing SS. Then we won't need our savings for regular expenses anymore. This is all easy to model in FRP, and makes it easy to test things like how long to wait to take social security.