Stop Light yellow to green
Posted: Sun Nov 09, 2014 9:35 am
What makes the StopLight light up the green light instead of the yellow, with 100% Probability of success ?
The easiest way to model this is probably to exclude the cash from your portfolio and enter it separately as an income stream that will reduce the withdrawal amount needed from your other funds.
For example, if you have $200k in cash and expected expenses of $50k per year, you could enter the $200k as 4 years of tax free income of $50k starting the first year of retirement.
Depending on how precise you want to be, you might want to discount the cash amount by a little bit to account for any loss in purchasing power (due to low interest rates) between now and when you plan to start withdrawing it.