Using Firecalc if already retired and drawing Social Security

[popntx]

My wife and I are both already retired and drawing Social Security. I'm using Firecalc to back into how much I can spend out of my $2.5 million portfolio with a 100% success rate. So far so good.

Now, my question regards what happens when I enter our Social Security income on the Other Income tab. If I enter the amount of Social Security received and enter the date it started, which was before the current year, it has no effect on the results. The instructions on this tab state " Only enter changes for future years. Back-dated entries will not be factored in."

Just to confirm my understanding, if all I'm interested in is the amount I can "safely" spend out of my portfolio, it doesn't matter what my Social Security income is. In other words, my Social Security income is on top of what I can spend out of my portfolio.

I think I'm answering my own question, just wanted some confirmation. Thanks!

 

[fosterscik]

That's how it works, but you can always "start" your SS this year if you want to confirm this.

 

[GalaxyBoy]

Agreed. I enter DW's SS income starting in the current year. I also reconsider the time frame since we've begun eating into the default 30 years in FireCalc.

 

[pb4uski]

+1 Since we are already collecting SS enter current SS received and start year 2026.

 

[fognostic]

if all I'm interested in is the amount I can "safely" spend out of my portfolio, it doesn't matter what my Social Security income is. In other words, my Social Security income is on top of what I can spend out of my portfolio.

Be careful with semantics here. If you add your social security income on the Other Income / Spending tab to your spending amount in the "Start Here" box and spend that total every year, your success rate will be much lower than indicated by FIRECalc. In other words, you could find yourself dining on cat food to make ends meet in a hurry.

Try this. Start with a spending amount that just acheives a 95% sucess rate and no more. Then keep spending fixed in the "Start Here" box, but delete income streams such as social security from the Other Income / Spending tab. Notice how your success rate drops?

The success rate for a given amount of spending in the "Start Here" box, e.g., a 99% success rate, fully incorporates the benefit of the income streams entered on the Other Income / Spending tab. You can only spend the amount in the "Start Here" box.

If you enter an expense in the Other Income / Spending tab, it works the same. For example, if you add annual health insurance cost as an inflation adjusted off chart spending item on the Other Income / Spending tab, that expense is also factored into the sucess rate and it will reduce the spending amount in the "Start Here" Box that will acheive a fixed success rate.