Question Regarding Conventional Planning
I've been playing around with the conventional planning method. The guidance in ESPlanner says:
"In conventional planning mode, you specify your post-retirement discretionary spending (i.e., you set your own retirement spending target) and the program smoothes your living standard, but only before you retire.When you activate conventional planning, you'll see a entry that allows you to specify your post-retirement annual spending target and the year you wish this spending to occur.If you set your spending target too high, your targeted spending may not be affordable. In this case, the program will recommend negative discretionary spending (displayed in red) before retirement. Since negative spending isn't possible (short of selling a kidney), so you'll need to lower your target or plan to work longer to make your target affordable."
I've been changing the target to avoid negative discretionary amounts, but when I have positive amounts I have many years of negative savings, which results in negative real assets balances.
How should I be using this? I'm basically trying different discretionary spending targets to keep pre-retirement consumption positive. Note: I have only two years in pre-retirement. In those years, my income and savings are intentionally high. In other words, I'm making and saving a lot of money now, before I retire.
How should I set this up?