Author Topic: CFIRESIM explanation of calculation  (Read 768 times)

BFGirl

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CFIRESIM explanation of calculation
« on: May 26, 2016, 10:44:38 AM »
I tried doing a search and kept getting errors so I'm going to post what is a basic question about CFIRESIM.

I have plugged in my investments, expected SS and expected pension.  When I ask it to calculate my initial spending amount for a 95% success rate, is the spending amount it gives me just the amount that I pull from my investments or is that the total amount it says I can spend including pension and SS?

I hope this makes sense.

bo_knows

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Re: CFIRESIM explanation of calculation
« Reply #1 on: May 26, 2016, 12:32:32 PM »
It is the total amount you can spend.

You could test this out by doing 1 calculation with your SS, and 1 without, and see if the number changes ;)

FWIW, also, if this is your first time using cFIREsim, make sure you're putting ANNUAL social security and pension numbers. A lot of people put in monthly numbers since that is what is given a lot.

-Bo
Creator of cFIREsim - Retirement calculator/simulator to see if you're on track. Variable spending plans, tons of options - www.cfiresim.com

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BFGirl

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Re: CFIRESIM explanation of calculation
« Reply #2 on: May 26, 2016, 12:40:05 PM »
Thanks Bo!

I had run the test both ways and was confused because the amounts seemed low.  Sure enough, I put in monthly SS instead of yearly.