Flexible Retirement Planner Support Forum

Another question about taxes. If I plan expenses of $1000 after taxes and have input a tax rate of 15%. Do I input $1150 as expenses into the planner or do I input $1000 and the planner will automatically take out the $150 taxes from my investiments?

Jim

As long as the income and investment tax rates are set appropriately, the planner will automatically deduct taxes from both investment income and retirement account withdrawals

So you shouldn't include taxes in your expenses. In your case, you would enter $1000 for expenses rather than $1150.

One note on taxes. The planner deducts taxes at the investment tax rate on all investment earnings each year. There's no concept of deferring taxes on unrealized capital gains. This isn't very realistic, but it should result in a more conservative plan.

Jim