Search found 10 matches

by lbhough
Mon Jun 01, 2015 11:16 am
Forum: General questions and comments
Topic: Taxes on Withdrawal
Replies: 8
Views: 7375

Re: Taxes on Withdrawal a non-IRA question

Hi Jim - I'm afraid I need a little more help on the tax calculations. If I set up age 66 and retirement 66, with a $1,000,000 taxable portfolio, 0 inflation, 0 income, 8% return with 0 SD, 15% investment tax rate, I can see how it calculates the end of year value. (a million @ 8% gives return of $8...
by lbhough
Wed May 27, 2015 5:10 pm
Forum: General questions and comments
Topic: Withdrawals not being inflated
Replies: 3
Views: 7806

Re: Withdrawals not being inflated

Hi Jim - I think I understand that you include inflation in all the calculations as stipulated in the input tables. And I understand that all the output data are showing 'present values'. Am I correct in assuming if I wanted to convert your output table to future values, I could correct each dollar ...
by lbhough
Wed May 27, 2015 4:57 pm
Forum: General questions and comments
Topic: FRP mechanics and returns
Replies: 4
Views: 4454

Re: FRP mechanics and returns

Thank you Jim - A little late getting back to this but your answer helped a lot understanding the (BIG) difference between geometric and arithmetic returns. In the popular press we hear a lot about how a 'balanced' portfolio would have an 8% average return. But to a layman, we might think that is wh...
by lbhough
Thu May 14, 2015 7:51 am
Forum: General questions and comments
Topic: Rules for flexible spending
Replies: 5
Views: 5490

Re: Rules for flexible spending

thanks for the clarification jim. I'm definitely going to take a deeper look into this. somewhere you indicated the easiest way to get the FRP standalone outputs into excel. unfortunately, I didnt' document how to do this. I will look back through your online documentation. it's a terrific program a...
by lbhough
Wed Jan 07, 2015 8:51 am
Forum: General questions and comments
Topic: Rules for flexible spending
Replies: 5
Views: 5490

Re: Rules for flexible spending

Jim - That's a big help. I will look at the spending policies page in detail before posting further. But just for clarification, you gave two ways in which spending would decrease referencing portfolio value. Does spending adjust in the SAME year that portfolio returns go down, or does year 2017 spe...
by lbhough
Tue Jan 06, 2015 9:40 am
Forum: General questions and comments
Topic: Rules for flexible spending
Replies: 5
Views: 5490

Rules for flexible spending

Morning ! I love this tool, and posted a question a few weeks ago. Since no one answered it, I thought I would try it again in a different category. (I put it under someone else's question about retirement spending). So here goes: As you have suggested in other posts, after setting up my basic expen...
by lbhough
Tue Dec 16, 2014 9:18 am
Forum: General questions and comments
Topic: Annual Retirement Spending
Replies: 3
Views: 4848

Re: Annual Retirement Spending

I also had a question related to retirement spending. As you have suggested in other posts, after setting up my basic expenses, income and portfolio, I ran a 'doomsday' scenario in which I simulated a 25% drop in returns during the first year of retirement. Using 'fixed' rules for spending, I don't ...
by lbhough
Sun Dec 07, 2014 8:24 am
Forum: General questions and comments
Topic: FRP mechanics and returns
Replies: 4
Views: 4454

Re: FRP mechanics and returns * SD *

Well - when I remove the standard deviation and run a custom 8.0% return on the above portfolio I get 8% return every year - on the nose. So there are two things I would like to understand about the program at this point: 1) when I say my age is 65 and retirement starts at 65 my portfolio of 1,000 h...
by lbhough
Sun Dec 07, 2014 8:13 am
Forum: General questions and comments
Topic: FRP mechanics and returns
Replies: 4
Views: 4454

Re: FRP mechanics and returns *taxes*

I'm still looking at this question... so even though income and expenses were $1 / year, taxes were not zeroed out. When I give 0 income and investment tax rates, my median return on an "8%" return portfolio is 7.6 % - much closer ! Like I said - this is a learning curve for me. Any other thoughts o...
by lbhough
Sat Dec 06, 2014 3:29 pm
Forum: General questions and comments
Topic: FRP mechanics and returns
Replies: 4
Views: 4454

FRP mechanics and returns

Dear Jim and FRP users, I'm very new to all this but find this program to be an amazing, one-of-a-kind tool to run detailed financial simulations without digging into the Monte Carlo methodology. I did a very simple setup and don't really understand the results. I set a 65 yr old user to retire at 6...