Future income Future Dollars
Posted: Sun Aug 19, 2018 3:20 pm
Just getting into it with the Flexible Retirement Planner. Very impressed with it generally speaking. Love the flexibility of inputs, overrides, the heat map scenarios....
One thing that is tripping me up is that the results are displayed in present day dollars. As a feature request...I would suggest that you allow users to toggle between future (inflated) and current dollars when viewing results as I think it would give more clarity. It makes it easier to comprehend "these are the estimates of the actual dollars that are coming and going..."
Since that's not available can someone assist with how to account for a couple different types of retirement income:
1) Social Security, when I know the estimate for the future dollar payment.
For example...I have used the official SS PIA calculator to estimate what my SS payment would be if I start taking it at 70 years old...in 2041. This estimate is about $75,000. Again, that amount is in 2041 dollars using SS "low" estimates for inflation. So if I want to add this to my simulation via additional inputs...how would I do that? It seems like I would need a COLA type that is effectiely "NO COLA, THEN TRACK". But that's not available.
Do I need to estimate what the $75,000 is in today's dollars and use that for the income, and use the COLA type "Track inflation?"
2) For a pension where I know the future annual payments (no annual cola)
My wife will begin receiving approx $60,000 annually in a pension when she's 65 in 2030. That's in 2030 dollars. Again, it seems like I have to figure out that that is in "today's" dollars, and then select COLA option to be "Track then no COLA" ?
One thing that is tripping me up is that the results are displayed in present day dollars. As a feature request...I would suggest that you allow users to toggle between future (inflated) and current dollars when viewing results as I think it would give more clarity. It makes it easier to comprehend "these are the estimates of the actual dollars that are coming and going..."
Since that's not available can someone assist with how to account for a couple different types of retirement income:
1) Social Security, when I know the estimate for the future dollar payment.
For example...I have used the official SS PIA calculator to estimate what my SS payment would be if I start taking it at 70 years old...in 2041. This estimate is about $75,000. Again, that amount is in 2041 dollars using SS "low" estimates for inflation. So if I want to add this to my simulation via additional inputs...how would I do that? It seems like I would need a COLA type that is effectiely "NO COLA, THEN TRACK". But that's not available.
Do I need to estimate what the $75,000 is in today's dollars and use that for the income, and use the COLA type "Track inflation?"
2) For a pension where I know the future annual payments (no annual cola)
My wife will begin receiving approx $60,000 annually in a pension when she's 65 in 2030. That's in 2030 dollars. Again, it seems like I have to figure out that that is in "today's" dollars, and then select COLA option to be "Track then no COLA" ?