Author Topic: Retirement Calculator  (Read 4972 times)

Goldielocks

  • Walrus Stache
  • *******
  • Posts: 6319
  • Location: BC
Retirement Calculator
« on: October 31, 2014, 12:15:59 PM »
http://financialmentor.com/calculator/best-retirement-calculator

I read an article in the globe and mail about why 4% simple calculation is good, but a bit too simple.

If you want to see how varying incomes and withdrawals affect your income stream, this is the one suggested to use.

I like being able yo put my RE numbers in, and allow for home sale in 15 years and DH income until he retires.

Check it out.. What are your thoughts?

More importantly, what numbers to use for  inflation, govt pension col increases, and rate of return?

I used 2% inflation, 1% govt col increases on old age pensions, and 5% (including inflation) annual rate of return.

Your thoughts?


arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 27911
  • Age: -999
  • Location: Traveling the World
Re: Retirement Calculator
« Reply #1 on: October 31, 2014, 12:22:48 PM »
Calculators like that are way too simplistic for me.

It doesn't take into sequence of returns risk at all.

www.cfiresim.com is much better, IMO, or even any monte carlo sim, rather than just a consistent return assumption.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

Kaspian

  • Handlebar Stache
  • *****
  • Posts: 1536
  • Location: Canada
    • My Necronomicon of Badassity
Re: Retirement Calculator
« Reply #2 on: October 31, 2014, 12:35:30 PM »
Oddly, I like even a simpler calculator than both of these.  ...Probably because (for the time being) I'm just trying to ballpark the required FIRE number?

https://networthify.com/calculator/earlyretirement

I've read in a few places that 3.8% is a better/safer number to go with than 4%, so that's what I've been going with.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 27911
  • Age: -999
  • Location: Traveling the World
Re: Retirement Calculator
« Reply #3 on: October 31, 2014, 12:40:56 PM »
Oddly, I like even a simpler calculator than both of these.  ...Probably because (for the time being) I'm just trying to ballpark the required FIRE number?

https://networthify.com/calculator/earlyretirement

I've read in a few places that 3.8% is a better/safer number to go with than 4%, so that's what I've been going with.

Yeah, that's a good one when you're a decade out (or 5+ years maybe) - when you get closer/need more precision you'll probably want to switch to some of the more in-depth ones.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

taekvideo

  • Bristles
  • ***
  • Posts: 264
Re: Retirement Calculator
« Reply #4 on: November 01, 2014, 01:22:20 PM »
Oddly, I like even a simpler calculator than both of these.  ...Probably because (for the time being) I'm just trying to ballpark the required FIRE number?

https://networthify.com/calculator/earlyretirement

I've read in a few places that 3.8% is a better/safer number to go with than 4%, so that's what I've been going with.
Yeah but 3.6% is safer than 3.8%.

arebelspy

  • Administrator
  • Senior Mustachian
  • *****
  • Posts: 27911
  • Age: -999
  • Location: Traveling the World
Re: Retirement Calculator
« Reply #5 on: November 01, 2014, 01:24:27 PM »

Oddly, I like even a simpler calculator than both of these.  ...Probably because (for the time being) I'm just trying to ballpark the required FIRE number?

https://networthify.com/calculator/earlyretirement

I've read in a few places that 3.8% is a better/safer number to go with than 4%, so that's what I've been going with.
Yeah but 3.6% is safer than 3.8%.

How would 3.4% do?  Please get back to me, it's urgent!!!
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

UnleashHell

  • Walrus Stache
  • *******
  • Posts: 6362
  • Age: 52
  • Location: Florida
  • Chapter IV - A New ... er.. something
Re: Retirement Calculator
« Reply #6 on: November 01, 2014, 09:53:06 PM »

Oddly, I like even a simpler calculator than both of these.  ...Probably because (for the time being) I'm just trying to ballpark the required FIRE number?

https://networthify.com/calculator/earlyretirement

I've read in a few places that 3.8% is a better/safer number to go with than 4%, so that's what I've been going with.
Yeah but 3.6% is safer than 3.8%.

How would 3.4% do?  Please get back to me, it's urgent!!!

I want to do it on 3.14% and spend retirement eating Pie.

deborah

  • Walrus Stache
  • *******
  • Posts: 8629
  • Location: Australia or another awesome area
Re: Retirement Calculator
« Reply #7 on: November 02, 2014, 06:01:38 PM »
We are spending retirement eating pie - must work out what our current WR is.

Goldielocks

  • Walrus Stache
  • *******
  • Posts: 6319
  • Location: BC
Re: Retirement Calculator
« Reply #8 on: November 02, 2014, 11:25:03 PM »
Calculators like that are way too simplistic for me.

It doesn't take into sequence of returns risk at all.

www.cfiresim.com is much better, IMO, or even any monte carlo sim, rather than just a consistent return assumption.

Hi. Thanks for the link, I spent a couple of hours checking it out.  Now yo get DH on board....