Just want to make sure I have this all straight --
Income is the total income from all sources (wages, investments, SS, Real Estate)
Spending is the total of spending from all source (Housing, Taxes, Medicare..including expenses identified in the special expense entry) but does not include discretionary spending such as vacations or Green Fees
Until recently, I’ve always used the default settings for the SOL index (ie, a constant 100% SOL for my & my wife’s early retirement at age 58 through 100). However, after a lot of thinking and reading (1 – see note below), I’m now firmly convinced I get a more realistic model by changing the SOL index as follows:
Age band 58-64: 100% SOL
Age band 65-74: -2% decrease per year (ie, SOL index of 98%, 96%, 94% etc thru age 80 when SOL is 80%)
Age band 75-84: drop to 75% SOL and maintained at 75% thru age 84
I've Retired early and I'm income constrained for a few years until Social Security begins. Is there a way that I can have ESP increase withdrawals from my IRA's for a few years to increase (and smooth) income. I tried changing Std of Living to a number greater than 100% for these years with no change that I can see in the PDF report. I also tried decreasing Std of Living for my remaining years after this period with no apparent change either. Should this method work and is something broken, and/or is there a better way to accomplish this?
View our range of other financial planning products powered by the Economic Security Computation Engine
Disclaimer: The suggestions and recommendations provided by Economic Security Planning, Inc.'s software tools and planning services do not constitute financial or investment advice. The creators of Economic Security Planning's software are not certified, registered, authorized, or any other form of financial planners. Economic Security Planning, Inc. is not an investment adviser registered with the U.S. Securities and Exchange Commission or any state securities agency, is not a registered broker-dealer and maintains no other regulatory credentials associated with the management of financial assets. Economic Security Planning, Inc. does not guarantee that the suggestions and recommendations derived from its software tools and planning services will necessarily achieve a secure economic plan. Like any software products, Economic Security Planning, Inc.'s software tools may have errors in its underlying code, and the assumptions about the future that it makes and that users input may prove false. In addition, output from the software tools and planning services may incorporate data obtained from third parties and such data (including any calculations that is based on such data) is provided on an “as is” basis. From time to time the output may contain errors that may be based upon, among other things, human data entry, aggregation and decompilation of data, processing of data through third party calculation engines and other processes that can give rise to errors. The company's financial plans and recommendations, including all of such plans and recommendations provided by its direct planning services, should be viewed as suggestive and informative educational inputs into your financial decision-making. None of our products or services recommend the purchase of specific financial products.
Copyright © 2022, ESPlanner || Patent Number: US 6611807 B1
Design by Zymphonies
