Hello, I'm trying to understand the difference between the fields for Annual Retirement Income and Annual Retirement Spending.
I've read through the info here https://www.flexibleretirementplanner.c ... ser-input/, but am still unclear on the difference, especially as the income is defined on the Additional Inputs page.
Thanks for any help!
Difference bet annual ret income and annual ret spending
Re: Difference bet annual ret income and annual ret spending
The annual retirement income field on the main planner page assumes the income starts at the age you set and ends at the end of the plan. That input also comes with a built-in assumption that the income is adjusted annually to keep up with inflation. Also, it's assumed that the entire income amount is taxed at the income tax rate.
The "income" cash flow entries in additional inputs give you more control over how inflation is handled, what percent of the income is taxed, and when the income starts and stops.
You can enter your planned retirement income on either the main input page (if those assumptions are ok), or you can enter it using additional inputs cash flow entries. Either way (or both) are fine. When the simulation gets run, all the income cash flow entries get added together in each year of the plan according to the way you set them up. After you run the planner, you can check the detailed view table to see the total amount of income that was entered for each year of the plan (from all of the income entries you created).
The same general idea applies to annual retirement spending. You can think of the main input page as a sort of short-hand quick entry form, while additional inputs gives you more flexibility and lets you enumerate various income and expense items and also supports more flexibility with things like start and end ages and inflation handling.
Many people who use additional inputs just leave the retirement income and retirement expenses fields on the main page blank. That lets them see all of their plan's income and expense cash flows in one place (in additional inputs).
The "income" cash flow entries in additional inputs give you more control over how inflation is handled, what percent of the income is taxed, and when the income starts and stops.
You can enter your planned retirement income on either the main input page (if those assumptions are ok), or you can enter it using additional inputs cash flow entries. Either way (or both) are fine. When the simulation gets run, all the income cash flow entries get added together in each year of the plan according to the way you set them up. After you run the planner, you can check the detailed view table to see the total amount of income that was entered for each year of the plan (from all of the income entries you created).
The same general idea applies to annual retirement spending. You can think of the main input page as a sort of short-hand quick entry form, while additional inputs gives you more flexibility and lets you enumerate various income and expense items and also supports more flexibility with things like start and end ages and inflation handling.
Many people who use additional inputs just leave the retirement income and retirement expenses fields on the main page blank. That lets them see all of their plan's income and expense cash flows in one place (in additional inputs).
Re: Difference bet annual ret income and annual ret spending
Thanks so much for your reply! I think it's making more sense to me now.
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