Interpretation of results -- "Planned Expenses"

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gplayle
Posts: 2
Joined: Sun Feb 27, 2011 2:36 pm

Interpretation of results -- "Planned Expenses"

Post by gplayle » Sun Feb 27, 2011 5:05 pm

First, thank you for a very useful, straightforward, and impressive tool I've been looking for something like this for a while. Do keep me on the mailing list, please. I'm interested in the way the tool will develop.

I've worked with the FRP several times. I'm not quite sure I understand the results as printed on the right side of the Summary of Results screen. I've entered a figure for annual retirement spending; I've set the goal seeking to "maximum annual withdrawal amount".

What I see is a figure for "Planned Expenses" that simply does not match what I've put in for planned expenses on the Additional Inputs screen. I have no idea where it's building this figure. Can you help point me at where it comes from?

Would the "planned expenses" figure be what the tool works out for the "maximum annual withdrawal"?

Thank you.
Greg

jimr
Posts: 557
Joined: Thu Feb 28, 2008 6:48 pm

Re: Interpretation of results -- "Planned Expenses"

Post by jimr » Fri Mar 04, 2011 8:57 pm

gplayle wrote:I'm not quite sure I understand the results as printed on the right side of the Summary of Results screen. I've entered a figure for annual retirement spending; I've set the goal seeking to "maximum annual withdrawal amount". What I see is a figure for "Planned Expenses" that simply does not match what I've put in for planned expenses on the Additional Inputs screen. I have no idea where it's building this figure. Can you help point me at where it comes from?
The user interface for this might be a bit confusing. When you're using goal-seek, the simulation tries to calculate the maximum expenses that can be funded, given the other inputs. So in goal-seek mode, "planned expenses" because an output (sort of - see below).
Would the "planned expenses" figure be what the tool works out for the "maximum annual withdrawal"?
Basically yes. One slight complication is that planned expenses is computed as the maximum annual withdrawal minus any taxes due on withdrawals from tax deferred IRAs and 401k's.

Hope that makes sense.

Jim

gplayle
Posts: 2
Joined: Sun Feb 27, 2011 2:36 pm

Re: Interpretation of results -- "Planned Expenses"

Post by gplayle » Sat Mar 05, 2011 1:51 pm

Jim:
Thank you for the clarification; it makes perfect sense. I'm still interested in where this product is going.

Greg

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