Puzzled about Goal Seek
Posted: Thu Apr 01, 2010 12:36 pm
I have been teaching myself to use the FRP tool and so far things are going well; but a couple of questions:
1. What is the relationship between the annual retirement spending entry, and the goal seek function? When I increase spending, the goal seek, set at 99.9% - which displays as 100%, will often return a figure in detailed view that is much lower than the program returns at 100% success when goal seek is off. If I ask the question, "how much can I spend per year with a 100% success rate" given the same portfolio parameters, shouldn't the answer remain the same?
(I am entering current age and retirement age to be the same. Would that cause a problem?)
2. Can I adjust for 15 years during which I believe my budget may be $8000 less than entered, by entering $8000 as taxable savings for 15 years in the additional input screen? Or should I enter as no-cola income?
Thank you very much for your help, and for the program.
1. What is the relationship between the annual retirement spending entry, and the goal seek function? When I increase spending, the goal seek, set at 99.9% - which displays as 100%, will often return a figure in detailed view that is much lower than the program returns at 100% success when goal seek is off. If I ask the question, "how much can I spend per year with a 100% success rate" given the same portfolio parameters, shouldn't the answer remain the same?
(I am entering current age and retirement age to be the same. Would that cause a problem?)
2. Can I adjust for 15 years during which I believe my budget may be $8000 less than entered, by entering $8000 as taxable savings for 15 years in the additional input screen? Or should I enter as no-cola income?
Thank you very much for your help, and for the program.