Retirement spending

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Joined: Tue Oct 06, 2015 2:54 pm

Retirement spending

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If client states a need for $400,000 yearly spending amount pretax is that the amount entered into ANNUAL RETIREMENT SPENDING box?

Posts: 634
Joined: Thu Feb 28, 2008 6:48 pm

Re: Retirement spending

Post by jimr »

The simulation model handles taxes separately from spending, which means that by default the amount entered in the box for annual retirement spending shouldn't include any amount used to pay income taxes.

You can either decrease the amount to account for the model handling the income taxes (and set appropriate tax rates), or set the income tax rate and investment tax rate to zero and leave the $60k unadjusted.

Be aware with the second approach you're telling the simulation not to deal with taxes at all because you've already adjusted for them.

You can read more about the various planner inputs here: ... ser-input/


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