Author Topic: Vanguard Financial Engines  (Read 3315 times)

SnackDog

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Vanguard Financial Engines
« on: June 11, 2013, 04:01:54 PM »
Does anyone else use the Vanguard Financial Engines tool?  I've run it a few times for grins but it is sort of a black box.  All my investments are with Vanguard so it see all my savings trends, etc. and claims to include company pension numbers.  However, when I run it lately it says if I make no changes to current income, savings and investment rates, in 13 years, I will can retire at about double my current pre-tax salary in *uninflated* income. 

Return seems high - I estimate it is using a 9% rate of return which would be great if achievable. 

Also it appears to use about 6% starting withdrawal rate.  Is it assuming I am a chain smoker or what?

Anyone else have insights?

Thanks
« Last Edit: June 11, 2013, 04:12:26 PM by SnackDog »

yolfer

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Re: Vanguard Financial Engines
« Reply #1 on: June 12, 2013, 04:36:38 PM »
I just played around with it for the first time and I don't have anything to add, except here's the link for other readers:

https://personal.vanguard.com/us/insights/retirement/financial-engines

TLV

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Re: Vanguard Financial Engines
« Reply #2 on: June 12, 2013, 04:48:57 PM »
Just tried it too, agree that it's very opaque.

One reason for the starting withdrawal being high is that they include a generous estimate of Social Security, but even with that it included it does seem high to me.