Search found 38 matches
- Thu Mar 14, 2024 10:40 am
- Forum: General questions and comments
- Topic: Using goal seek but with a consistent withdrawal rate
- Replies: 3
- Views: 10548
Re: Using goal seek but with a consistent withdrawal rate
I assume the reason the withdrawal rate gets to 15% is because you specified expenses that require that high of a withdrawal in those years. If that high of withdrawal rate is unrealistic, what would you like the simulation to do differently in those years and how should it decide what's reasonable...
- Thu Mar 14, 2024 8:09 am
- Forum: General questions and comments
- Topic: Using goal seek but with a consistent withdrawal rate
- Replies: 3
- Views: 10548
Using goal seek but with a consistent withdrawal rate
The goal seek feature is really useful. But one issue I have is with the "Use Goal Seek to Find retirement portfolio value needed to sustain withdrawals." While the feature "works" in the general sense, it allows the planner to withdraw huge, non-real world percentages of the por...
- Fri Jan 20, 2023 9:15 am
- Forum: General questions and comments
- Topic: understanding "Income Tax Rate" and "Taxable Percent"
- Replies: 10
- Views: 262839
Re: understanding "Income Tax Rate" and "Taxable Percent"
Right, I understand. But that does not account for the standard deduction (or other deductions or non-taxable income), in this case $27k (rounded). If we set the taxable percent to 100%, and the income tax rate to...whatever, that will give a false amount of tax due, won't it? For example if we say...
- Thu Jan 19, 2023 8:44 pm
- Forum: General questions and comments
- Topic: understanding "Income Tax Rate" and "Taxable Percent"
- Replies: 10
- Views: 262839
Re: understanding "Income Tax Rate" and "Taxable Percent"
The taxable percent is the percent of the income that is subject to taxation. The income amount is multiplied by the taxable percent, then the result is multiplied by the tax rate to calculate the taxes due on the income. The taxes due amount is subtracted from the income to determine the net incom...
- Thu Jan 19, 2023 9:08 am
- Forum: General questions and comments
- Topic: understanding "Income Tax Rate" and "Taxable Percent"
- Replies: 10
- Views: 262839
understanding "Income Tax Rate" and "Taxable Percent"
I'm not fully clear on how taxes are calculated in FRP. I understand that FRP does not calculate marginal tax rates, only average. But let's look at a simple example. Let's say a MFJ couple has a pension of $100,000 and that is their only retirement income. The pension is taxable federally. If we as...
- Sat Sep 05, 2020 6:45 pm
- Forum: General questions and comments
- Topic: Using Goal Seek but limiting withdrawal percent
- Replies: 5
- Views: 17325
Re: Using Goal Seek but limiting withdrawal percent
Thanks. So the way your retirement income is staged is going to force your portfolio withdrawals to be very lumpy. This makes more sense now. I don't quite understand why a few years with a high withdrawal percent is a problem. If it was me, I'd probably be inclined to seriously lower portfolio ris...
- Sat Sep 05, 2020 6:01 pm
- Forum: General questions and comments
- Topic: Using Goal Seek but limiting withdrawal percent
- Replies: 5
- Views: 17325
Re: Using Goal Seek but limiting withdrawal percent
I'm a little confused about why you're seeing such a high withdrawal rate in some years. Assuming you're targeting a 90ish percent probability of success, the planner wouldn't be likely to draw down the portfolio to zero. This is because it'd be tough to target such a complete spend-down while stil...
- Sat Sep 05, 2020 7:44 am
- Forum: General questions and comments
- Topic: Using Goal Seek but limiting withdrawal percent
- Replies: 5
- Views: 17325
Using Goal Seek but limiting withdrawal percent
Jim, When one uses the Goal Seek feature that shows portfolio value needed to sustain withdrawals, the resultant withdrawal percentages are higher than what one would accept in real life. For example, in my situation a $1m retirement portfolio would "work" but the planner shows some years ...
- Sat Feb 29, 2020 4:17 pm
- Forum: General questions and comments
- Topic: understanding % of expenses funded
- Replies: 2
- Views: 13239
Re: understanding % of expenses funded
I think what you're seeing is do to rounding. The number in parenthesis () in that column of the detailed view is the number of failures. If it's not zero, it means there were cases in which the simulation ran out of money that year. So even though it's showing a probability of success of 100%, it'...
- Sat Feb 29, 2020 11:44 am
- Forum: General questions and comments
- Topic: understanding % of expenses funded
- Replies: 2
- Views: 13239
understanding % of expenses funded
Hi Jim, In many of my runs, the planner returns a "Probability of Success 100%" report. But, then, under that, it reports an "Average Spending Shortfall" of, for example, 47%. This number will vary, going slightly up and slightly down. When I look at "Detailed View" I s...