Spending changes after new update
I just installed the new ESPlanner update 2.35.0, and noticed something that strikes me as a bit odd.
Just before installing it, I ran reports of three scenarios (automatically updated to 2017): my basic profile (which assumes level discretionary spending until age 100, 0% real return on investments), and two more optimistic profiles which assume a 1% real return and an annual 1% and 2% decline in real spending (i.e. a nominal increase less than inflation). Then I installed the update, and ran the same reports. In each case, there was an approximate 3% increase in discretionary spending. While not exactly a staggering amount, this seems significant enough to require a major change in taxes, social security, or SOMETHING to explain it, and I’m not aware of anything like that.
There’s nothing very fancy about the scenarios. I plan to work two more years, my wife and I already take social security, we plan to stay in our house until we die (a pretty optimistic assumption, admittedly), we have three immediate annuities, and a mortgage that will be paid off in 11 years. Arbitrarily, I assume a 20% increase in taxes in 2020, and a 20% reduction in social security benefits in 2034. And there are a few other assumptions, like unrealized capital gains. But I changed none of these between running the reports on the old and new version of ESPlanner. At no time does the program generate life insurance, or force a change in discretionary spending (other than the programmed 1% or 2% decline), or anything fancy. Any thoughts?