Search found 35 matches

by eric
Sun Apr 24, 2016 7:57 pm
Forum: General questions and comments
Topic: Forced withdrawal (related to RMD?)
Replies: 4
Views: 3818

Re: Forced withdrawal (related to RMD?)

Understood. Thanks.

Fortunately, those non-reported numbers won't be significant for me for my actual personal situation. I just stumbled upon this when I was doing some test examples to make sure I understood how the basic calculations work.
by eric
Sun Apr 24, 2016 7:50 pm
Forum: General questions and comments
Topic: Capital gains - tax treatment
Replies: 13
Views: 17169

Re: Capital gains - tax treatment

Thanks very much. A lot to think about! AMT in particular is a mystery to me. I guess there's no choice but to dig into the tax regulations and figure it out. I've done some sensitivity analysis, and discovered that tax rates are a significant factor in the success of my retirement plan. So even tho...
by eric
Sun Apr 24, 2016 7:42 pm
Forum: General questions and comments
Topic: Show age rather than years?
Replies: 5
Views: 4024

Show age rather than years?

Jim - Is there any way to show age rather than years on the simulation results pane? If not, it would be a useful option. I find it much easier to think of my planning in terms of my age, not years. Also, when I'm planning for a long period, say 25-30 years, the year labels at the bottom start getti...
by eric
Sun Apr 24, 2016 7:20 pm
Forum: General questions and comments
Topic: Forced withdrawal (related to RMD?)
Replies: 4
Views: 3818

Re: Forced withdrawal (related to RMD?)

Portfolio withdrawals aren't considered or processed in the years before you retire and as a side effect, the RMD logic isn't engaged either. But it appears that at least some of the RMD logic is triggered at age 70. In the example I gave, I start seeing a small but growing taxable portfolio starti...
by eric
Sun Apr 24, 2016 7:00 pm
Forum: General questions and comments
Topic: Forced withdrawal (related to RMD?)
Replies: 4
Views: 3818

Forced withdrawal (related to RMD?)

I'm a newcomer to FRP, and still trying to figure out how all the pieces fit together. I'm running an example with these values: Tax Deferred Portfolio Value = 100,000 Starting age = 60 Retirement age = 75 Annual retirement spending = 0 Investment tax rate = 0 Income tax rate = 0 When I run the simu...
by eric
Sat Apr 23, 2016 1:01 pm
Forum: General questions and comments
Topic: Capital gains - tax treatment
Replies: 13
Views: 17169

Re: Capital gains - tax treatment

Thanks very much for your suggestions. I'll take a careful look and think this through. I understand that the planning process is dominated by uncertainties and not by details like this. But in order to know what's important and what's not, I need to think it through carefully before I can disregard...
by eric
Sat Apr 23, 2016 12:32 pm
Forum: General questions and comments
Topic: Tax-deductible expenses (charitable contributions, mortgage interest)
Replies: 7
Views: 6488

Re: Tax-deductible expenses (charitable contributions, mortgage interest)

Thanks for the extra info. You've made a compelling case to some sort of deductibility flag and I made a note to look into it when I'm in that area of the code again. Thanks. That would be a great help. To give you some sense of how it matters.... I've just started playing around with my mortgage n...
by eric
Fri Apr 22, 2016 11:51 pm
Forum: General questions and comments
Topic: Capital gains - tax treatment
Replies: 13
Views: 17169

Re: Capital gains - tax treatment

Actually, I don't think you clear 1% per year because part of the 4% growth gets eaten by taxes doesn't it? I think you're right. Capital gains tax is assessed based on the nominal value of the asset, not the inflation-adjusted value. So in my example, the asset is now worth $300,000. It grows at a...
by eric
Fri Apr 22, 2016 8:45 pm
Forum: General questions and comments
Topic: Capital gains - tax treatment
Replies: 13
Views: 17169

Re: Capital gains - tax treatment

Jim: Thanks very much. I'll give it a try. Regarding your earlier suggestion: Another way to handle a planned sale of a capital asset is to leave the asset out of the plan initially, then create a 'Taxable Savings' cash flow in additional inputs that adds the expected net proceeds from the sale into...
by eric
Fri Apr 22, 2016 7:48 pm
Forum: General questions and comments
Topic: Capital gains - tax treatment
Replies: 13
Views: 17169

Re: Capital gains - tax treatment

trfrp: Thanks very much. Nicely explained. I'm a newcomer to FRP, and just trying to figure it all out. jimr: What's the rationale for the 15% default value for investment tax rate? I understand that it's a variable, subject to adjustment based on individual circumstances. But the 15% looks suspicio...