5 Retirement Calculator Mistakes

[@TheHavocdog]

I believe that every good calculator should allow you to add in extra "one off" expenses that you know will happen. ( new roof, ten years out/ new furnace 6 years out/ significant health issue, 20 years out/ new car, 10 years out/ funeral costs, 17 years out.)

[@SpookyEng1]

New Retirement has a good tool to model those types of expenses.(not an employee, just a satisfied user)

[@1dash133]

Note about Roth Conversion calculation. I just ran a Roth Conversion Explorer using the IRMAA Bracket Limit option and it resulted in a conversion that far exceeded my MAGI limits. My guess is that it assumed an AGI based on my Basic Budgeter inputs that grossly underestimated my true AGI and therefore an underestimated MAGI. Garbage in/garbage out. I suggest that you do your own independent check of the Roth conversion, otherwise be prepared for a tax surprise two years from now (when IRMAA penalties hit your pocketbook). Use the Roth calculator just as a planning tool for ballpark numbers.

[@thomassailors1180]

Where do you put inherited IRA’s? They have to be distributed in 10 years

[@jwardle7]

Steve’s point on waiting to maximize your SS benefit is not for everyone. Early retirees who seek to travel, those receiving pensions, or those who don’t consider SS to be their main source of income should consider collecting at 62. My wife and I will collect over 200k in SS during the 5 years that we plan to travel the most. The extra $1500 per month that we would receive if we wait until 67 to collect will mean little in comparison to the utility we’ll get in having that $200k during our first 5 years of retirement. Plus, we won’t have to tap into as much savings during those 5 years if we take it at 62.

[@gregsilva7271]

My scenario exactly

[@SpookyEng1]

Most planners recommend the lower earning spouse claims at 62 and the higher earner claims at 67 or 70. I am in a similar situation and the higher SS for my wife after I (statistically) die is worth a bit of delay. I don’t need the money to support robust travel plans and if I need to dip into savings it’s not a big impact (as modeled in New Retirement and PlanVision).

[@cordeg]

Precisely. Analysts tend to focus on maximizing your SS income over your potential lifetimr, but the real focus should be maximizing your SS over the period that you actually can make good use of it.

[@MargretParsons]

How do you set up the amount you get for disability. It only shows social security and if I try to put in the disability as social security,it changes the dates around and messes everything up. I have the rest of it partially set up but not being able to do the disability interferes too much. 6:44

[@lisaannphillips]

Thank you so much for this, lots of info. I look forward to getting more into the tool, which I have subscribed to.

[@ChloeBensonBeautyBoxes]

I love newretirement software. It’s cheap and gives me peace

[@StackingBenjamins]

Love the feedback, thank you. Glad it helps give you peace!

[@lisaannphillips]

peace is good!

[@rpjordan]

I found this channel through Camp FI and because I immediately succumbed to Joe's speaking charm. Came to SB channel and picked what I might watch - shocked at the 1500+ podcast episodes I went to this video and man... after signing up for this calculator I couldn't be more disappointed. First of all, $120/year is nuts. That's almost the price of Netflix. Second, everything of value is locked behind that paywall. Third, I input my info and they said I had a 25% chance of success! Haaa!!! Anyway, I enjoyed the talk and preaching on the common misses like taxes and COLA. Just when you think you've finally found a good calculator. Nothing beats the spreadsheet.

[@ThePianoMan1953]

My Wells Fargo advisor wants $15,000/year. (and DIY is much better and more satisfying) Isn't everything relative?

[@rpjordan]

@@ThePianoMan1953 the astounding price people will pay for reassurance! Chances are of you care enough to actively seek out a calculator and videos you're going to be just fine

[@ThePianoMan1953]

@@rpjordan That's probably true. But like Clint Eastwood said, "a man's got to know his limitations." I'm sitting on a good "chunk" of money and I DO know my limitations. I think it is also true that many think, if I pay a guy enough money, my nest egg will be invested well. The 4% rule makes a lot of sense but I'm still afraid of some possible bad years. That would be no fun (as in investing in the year 2000) Try running that year if you have a strong stomach. Pretty scary!

[@MarkHe-rj2lk]

I recently subscribed to Planner Plus and am finding it very helpful. HOWEVER, there isn't a way ( at least I haven't found it yet) to model savings draw down between after tax brokerage account and tax deferred accounts. We both plan to start SS at 70 and draw down tax deferred accounts between 65 and 70 to reduce RMD's. This makes the RMD amount in Lifetime Income Projection to be higher than it actually will be.

[@JohnJohn-wt5ll]

Is there a good tool at there to determine how to balance your portfolio and what funds to to take out of during retirement? This is a great tool but there needs to be the basis for its performance.

[@terryq9966]

How often are there updates to the program? Or is done on subscription anniversary date?

[@StackingBenjamins]

Updates are done often, based on CFP recommendations and user feedback.

[@janetjackson9106]

Should monthly Pension Amount be input as Gross or Net? Do you gross up Income and Expenses?

[@gingerkilkus]

Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k.

[@Franklin-gq4si]

This is true. I'm in my mid 60's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.

[@williamDonaldson432]

Its unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $287k passively by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@foreverlaura-fq4eu]

@@williamDonaldson432 I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.

[@williamDonaldson432]

Firms can be unscrupulous as they prioritise their own commission over your profitability. On the other hand, I prefer working with individual investors like Annette Marie Holt, who only take a share from your profits, not your initial capital. I must say, my experience with her has been exceptional thus far.

[@williamDonaldson432]

Her name is Annette Marie Holt can't divulge much. Most likely, the internet should have her basic info, you can research if you like.

[@katsadventures7027]

I am interested in the calculator! How much is it to purchase it?

[@MrProsat]

Be nice if there was a way to model guaranteed income annuities paid from an ira.

[@janetjackson9106]

What is "OTHER" in calculation's? Passive Income?

[@LonnieEllis-yx7vm]

Does this work for Canada as well?

[@katsadventures7027]

Yeah, I’m very interested in purchasing it, but is there online support to help me properly fill it in I don’t really know much about what I’m doing here

[@SpookyEng1]

Try the trial version, see how it works for you. They have assistance and you can book an advisor session for a one-time fee to help you construct/assess your plan. One thing I wish it included is better guidance on inflation assumptions which this video addresses.

[@sandrakaylindsay952]

I wish New Retirement had a way to model self-insuring for long-term care with money saved in a separate investment account for that purpose. It could allow the account to be flagged for that purpose and then choose that option in the Long-Term Care choice. I do not think it is very rare for those who have looked at the cost of long-term care to consider self-funding. Using my home equity is not an option as my children need to inherit it as they intend to still live there.

[@jonnyslick81]

I don’t think New Retirement lets you choose the account, but I believe it does factor in long term care and draw down from your cash/investment accounts until they hit zero. If doesn’t touch real estate unless you add a home sale to your plan, so it shouldn’t factor in your home you want to pass down in your long term care / overall retirement outcome.

[@katsadventures7027]

Also, I’m from Canada so is this going to be OK for me?

[@NatesRandomVideo]

It needs a way to model inherited IRAs and their RMDs.

[@NancyGates-t3n]

This feature is on our Roadmap.

[@LonnieEllis-yx7vm]

Does this tool work for Canada as well?

[@NancyGates-t3n]

If you are not a US citizen, PlannerPlus may be useful for projecting a long term financial plan. There are a number of differences you'll want to be aware of. The Planner accounts for Social Security and Required Minimum Distributions as per the IRS Tax Code and does not have features for the retirement and tax regulations of other countries. There is no way to change your tax rate in the current program. However, you may try using a non taxable pension for work income and Roth Type account for your 401k. The Roth will not trigger taxes or be subject to RMDs. We hope to expand features for international users in the future, you may want to keep an eye on our newsletter and Facebook Group for updates.

[@katsadventures7027]

I will have my CPP my old age. I just lost my husband so I have his CPP and when I’m 60, I will also have the survivors allowance and then when I turn 65 it changes over to GIS guaranteed income supplement and plus I have my savings.

[@chrisparlove]

A interesting extension would be to a tool that models generational wealth.

[@charleslewis9038]

I am very disturbed about how I change major parameters on their website, like my wife dying, and none of their outlook changes. For instance, like me needing 4 million dollars to retire. This seems weird.

[@keithmcphail1152]

A sit down to talk about expenese just paid for in the previous week, and then what you plan to spend in the next week... every week? Way over the top. You guys must have a very variable life style. Most of us spend more or less the same things over and over again. Every month. It's good to be obsessive when there is an issue, but not so much if things are stable.

[@SpookyEng1]

I use a budget tracking spreadsheet I track categories (Food, various bills, vacation, insurance etc and a General Purchase category for small non recurring purchases) at the end of the month I roll the totals to an annual tracking sheet. After 5 years of data I have a solid picture on what we are spending and the impact of lumpy expenses (just dropped an unplanned $12k on a new HVAC last week). I update it every two weeks when I get paid.

[@katsadventures7027]

The banks have been charging me 1.78%. I don’t like it far too much.

[@calabazasbike8863]

Camera seems to be out of focus, or low res.

[@youarehere1251]

Waiting AI tells me I can retire.

[@sw6118]

Long term care falls on the surviving spouse and it needs to be discussed.

[@SecondActswithMarco]

40% of your health care costs spent during the last 18 months of your life? Carpe diem everyone

[@ThePianoMan1953]

"Gather ye rosebuds while ye may"

[@mikepeterson443]

It's just a dang calculator, why does it make me sign up to use it?

[@missouri6014]

The retirement planning tool on Fidelity it’s just as good and it’s free

[@verrettes]

I have account with Fidelity and have looked at their retirement planning tools. They don't come close to comparing. For one, Fidelity doesn't offer a Monte Carlo assessment.

[@missouri6014]

They make it simple and give you three scenarios to pick from a good market average and below

[@StackingBenjamins]

@@missouri6014 Great point. If you are NOT looking for "what if" scenarios and in-depth tools to create milestones, by all means use the free ones out there (Fidelity's tool is middle-of-the-road IMO). For a great list of free calculators that just cover the basics (without tax planning, milestones, or "what if" scenarios), go to Chris Mamula's website CanIRetireYet.com. He has a huge list of calculators that are free. - joe

[@ivanvarykino8202]

Incorrect. I've had my work plan with fidelity for 25 years. I purchased NewRetirement for a good reason. Or for many good reasons I should say.

[@missouri6014]

@@ivanvarykino8202 Did you use the Fidelity planner on their website I use it all the time and it’s fine