Author Topic: cFIREsim Guide?  (Read 6302 times)

neo von retorch

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cFIREsim Guide?
« on: April 14, 2017, 08:42:01 AM »
Every time I've dabbled with cFIREsim I have no idea what I'm doing.

How do I account for paying off my rental mortgage in 2026?
How do I account for rental income?
How do I account for selling my primary home and traveling?

I have no idea! So every time I see "well I simply entered my numbers and see that if I retire next year, I'll have an 84.37% success rate!" I think, "How?!"


boarder42

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Re: cFIREsim Guide?
« Reply #1 on: April 14, 2017, 08:57:19 AM »
you put your mortgage under extra spending make inflation adjusted "fixed"

Rental income would go under "other income"

Pick a year you plan to sell your home and put the expected sale under "other income" as a fixed 1 year income for that year.

neo von retorch

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Re: cFIREsim Guide?
« Reply #2 on: April 14, 2017, 09:17:14 AM »
But I put my current 2017 portfolio balance but plan for retirement in the future (aka 2023) -- how does it calculate my portfolio growth between now and then? Is "additional income" also supposed to include "current working income"?

rpr

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Re: cFIREsim Guide?
« Reply #3 on: April 14, 2017, 09:28:16 AM »
But I put my current 2017 portfolio balance but plan for retirement in the future (aka 2023) -- how does it calculate my portfolio growth between now and then? Is "additional income" also supposed to include "current working income"?
Yup. I have the same question as well.

boarder42

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Re: cFIREsim Guide?
« Reply #4 on: April 14, 2017, 09:28:48 AM »
But I put my current 2017 portfolio balance but plan for retirement in the future (aka 2023) -- how does it calculate my portfolio growth between now and then? Is "additional income" also supposed to include "current working income"?

i dont know i dont use it to calc my fire date.  I have complicated projections that dont follow the market b/c i have an ESOP thats crazy valuable at my company.  So i use my own spreadsheet to calc future value, then plug in number like i'm retiring this year for my actual fire date in 6 years.  and set the horizon for time to 40 years b/c that makes sure you get all the bad down years in there.

Poeirenta

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Re: cFIREsim Guide?
« Reply #5 on: April 14, 2017, 10:54:59 AM »
This is why I use FIRECALC instead. I look at cFIREsim and my head swims.

2Birds1Stone

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Re: cFIREsim Guide?
« Reply #6 on: April 14, 2017, 11:01:34 AM »
This is why I use FIRECALC instead. I look at cFIREsim and my head swims.

+1

neo von retorch

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Re: cFIREsim Guide?
« Reply #7 on: April 14, 2017, 11:20:13 AM »
This is why I use FIRECALC instead. I look at cFIREsim and my head swims.

So how do I account for paying off a mortgage (i.e. reduced spending going forward at a certain date) in FIRECalc?

Poeirenta

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Re: cFIREsim Guide?
« Reply #8 on: April 14, 2017, 02:59:41 PM »
I think you could use the Other Income/Spending tab where it says Pension (or off chart spending reduction), where you can input the amount and the date range.

For a house sale, you could use the Portfolio Changes tab.
« Last Edit: April 14, 2017, 03:01:54 PM by Dusty Dog Ranch »

tralfamadorian

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Re: cFIREsim Guide?
« Reply #9 on: April 14, 2017, 03:35:42 PM »
So how do I account for paying off a mortgage (i.e. reduced spending going forward at a certain date) in FIRECalc?

1) Don't pay off a mortgage early.
2) If you insist, add the expense of payoff as a yearly line item separate from your permanent yearly expenses.  There's a section at the bottom for other annual expenses with a start year and a finish year. 

Spork

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Re: cFIREsim Guide?
« Reply #10 on: April 14, 2017, 03:49:01 PM »
This is why I use FIRECALC instead. I look at cFIREsim and my head swims.

+1
+2

...and all the javascript on cfiresim makes my screen scraping scripts cry desperate  tears of frustration.   

Retire-Canada

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Re: cFIREsim Guide?
« Reply #11 on: April 14, 2017, 03:50:26 PM »
But I put my current 2017 portfolio balance but plan for retirement in the future (aka 2023) --

1. how does it calculate my portfolio growth between now and then?

2. Is "additional income" also supposed to include "current working income"?

1. cFIREsim does that for you automatically
2. yes - but cFIREsim will assume your current spending level is the same as your FIRE spending level. So if you spend more now you can add the extra $$ as addition spending between now and the FIRE date. - ignore
« Last Edit: April 15, 2017, 06:46:42 AM by Retire-Canada »

neo von retorch

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Re: cFIREsim Guide?
« Reply #12 on: April 14, 2017, 04:36:08 PM »
But how does it guess how much I'm saving/adding to my portfolio over the next six years?

Monkey Uncle

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Re: cFIREsim Guide?
« Reply #13 on: April 14, 2017, 07:13:53 PM »
But I put my current 2017 portfolio balance but plan for retirement in the future (aka 2023) --

1. how does it calculate my portfolio growth between now and then?

2. Is "additional income" also supposed to include "current working income"?

1. cFIREsim does that for you automatically
2. yes - but cFIREsim will assume your current spending level is the same as your FIRE spending level. So if you spend more now you can add the extra $$ as addition spending between now and the FIRE date.

No, your answer to #2 is not correct.  cFiresim doesn't start deducting from your stash until you reach your retirement year.  So it's not spending anything until you reach that date (basically it's assuming that you're living off of your work income until retirement).  You don't have to put in your current spending prior to retirement.  All you have to do is account for any SAVINGS that you add to your stash prior to your retirement year.  You do this in the "other income" section.  So if you're saving $40k/yr while you're still working, you'd put in a $40k recurring other income, starting in the current year and ending in the last year before your retirement year.  So prior to your retirement year, it's growing your stash by savings + investment return.

Well, I suppose you could do it the way you suggest, but it seems unnecessarily complicated to me.  You'd have to enter your total current spending as extra spending, then enter your full salary as other income, both starting in the current year and ending in the year before retirement.  To me it's much simpler to just enter expected net savings as other income.

Retire-Canada

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Re: cFIREsim Guide?
« Reply #14 on: April 15, 2017, 06:46:13 AM »
Good catch. Yes I was wrong on that.

mustachianteacher

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Re: cFIREsim Guide?
« Reply #15 on: April 15, 2017, 09:00:42 AM »
This is why I use FIRECALC instead. I look at cFIREsim and my head swims.

+1

Exactly. I like FIREcalc because of all the little tweaks and refinements you can make.

chasesfish

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Re: cFIREsim Guide?
« Reply #16 on: April 15, 2017, 06:04:03 PM »
I'm also a fan of FIREcalc instead of cFIREsm, mainly because FireCalc is a 100% success rate instead of something lower

spokey doke

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Re: cFIREsim Guide?
« Reply #17 on: April 16, 2017, 07:51:54 AM »
I really like cfiresim...seems pretty straight forward after reading through the FAQ/Tutorial.

Re. how it calculates the portfolio growth...that is the whole focus of what it does...running simulations using series of historical market data (while also tracking additional income and expenses at whatever times and levels you specify).  What am I missing that I'm missing?

neo von retorch

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Re: cFIREsim Guide?
« Reply #18 on: April 16, 2017, 11:42:38 AM »
Ha I just didn't get that my income now is apparently "additional income" according to the site.

Abe Froman

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Re: cFIREsim Guide?
« Reply #19 on: May 04, 2017, 04:25:53 PM »
Has anyone noticed any issue with cFiresim lately? When I go in to run some calculations- the resultant numbers do not change.

ysette9

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Re: cFIREsim Guide?
« Reply #20 on: May 04, 2017, 05:12:18 PM »
I notice that when I have hit ten simulation runs. Any subsequent simulation doesn't actually display and I can't find a way of clearing the old ones out. I have to shut down my browser or switch over to another browser to clear out that history.

Spork

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Re: cFIREsim Guide?
« Reply #21 on: May 04, 2017, 06:31:34 PM »
I might also mention: for some reason the forums have become a hotbed of Russian spam.  I tried reporting them... didn't seem to help.  I finally deleted the email address registered with the forums.

 

Wow, a phone plan for fifteen bucks!