How to get Lifetime Smooth Consumption Amount while cash constrained?
I have found that if I set the borrowing constraint to $50,000, that ESPlanner is unable to provide a Lifetime Smooth Consumption Amount. Instead, it provides four very different Smooth Consumption Amounts for 4 distinct periods (e.g., 2016-2021, 2022-2025, and 2016-2027, 2028 and later).
If I set the borrowing constraint to $500,000, then ESPlanner is able to find a Lifetime Smooth Consumption Amount. However, in this case, the borrowing reaches $367,000 in 2017, which is unrealistic for me.
I figured out a way to get both a Lifetime Smooth Consumption Amount and limit borrowing to $50,000 by doing the following:
1. I used the Retirement Accounts folder, Special Withdrawals tab to specify withdrawals from certain retirement accounts in the years that were cash constrained
2. I used a trial and error approach to set the specific withdrawal amounts for each year (e.g., 2017 to 2030).
While this approaches seems to have achieved the desired result, I feel that it is not consistent with the ESPlanner approach of solving for a Lifetime Smooth Consumption Amount while optimizing certain parameters.
Is there a way to get ESPlanner to set the specific withdrawal amounts, instead of me doing it by trial and error?
If not, could you tell me if my approach seems reasonable, or if you can think of a better approach?
PS - I have ESPnanner Plus, version. 188.8.131.52