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When is "current age" calculated?
Posted: Sat Aug 15, 2020 6:33 pm
by StayPuft
If I just turned 40, I would put that I have $40k saved in my portolio.
But, after 11 months have passed by, I'm still 40, but I now have 70k in my portfolio.
So, when it asks my current age, at what point in the 12 months that I'm 40 does it calculate things? I could put very different numbers in for the same age and it skews the results. I'm trying to get it as close to my actual scenario as possible. Should I use the amount I had in my portfolio the day I turned 40?
Re: When is "current age" calculated?
Posted: Sun Aug 16, 2020 7:10 am
by jimr
The planner starts the simulation as of today. The second year of the simulation will be in one year from now and at that time, the planner will assume you just turned one year older. Logically, the planner withdraws any expenses for the year at the start of the year and calculates portfolio gains at the end of the year.
Most people enter their current portfolio value and their current age and call it close enough.
Assuming you enter your current portfolio value, the uncertainty of exactly when you turn 41 is unlikely to make a huge difference in the results. If you're close to 41 years old now, you could experiment by entering your current age at 41 instead of 40 to see how that impacts things.
Re: When is "current age" calculated?
Posted: Sun Aug 16, 2020 12:20 pm
by StayPuft
jimr wrote: ↑Sun Aug 16, 2020 7:10 am
The planner starts the simulation as of today. The second year of the simulation will be in one year from now and at that time, the planner will assume you just turned one year older. Logically, the planner withdraws any expenses for the year at the start of the year and calculates portfolio gains at the end of the year.
Most people enter their current portfolio value and their current age and call it close enough.
Assuming you enter your current portfolio value, the uncertainty of exactly when you turn 41 is unlikely to make a huge difference in the results. If you're close to 41 years old now, you could experiment by entering your current age at 41 instead of 40 to see how that impacts things.
Ah, okay. That makes sense. Thanks! That really helped.
Re: When is "current age" calculated?
Posted: Sun Aug 16, 2020 8:20 pm
by StayPuft
I know the planner shows projections in today's dollars. Is there an option where I can see them in future dollars? Just so I can see if I'm on track as the years go by.
Re: When is "current age" calculated?
Posted: Mon Aug 17, 2020 7:54 am
by jimr
Sorry, but unfortunately there isn't an option that does this. Everything is always shown in today's value dollars.
Re: When is "current age" calculated?
Posted: Tue Aug 18, 2020 12:29 am
by StayPuft
jimr wrote: ↑Mon Aug 17, 2020 7:54 am
Sorry, but unfortunately there isn't an option that does this. Everything is always shown in today's value dollars.
No worries. Thanks!