What is the interaction, if any, between the retirement portfolios constructed using Monte Carlo planning and the option to annuitize in the Retirement section?
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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).
As you are aware, a Federal Employees Retirement System (FERS) pension is partially inflation adjusted according to the CPI as follows: increase in CPI up to 2% = FERS COLA same as CPI increase; 2 - 3% increase in CPI = 2% COLA; 3% or more increase in CPI = CPI - 1% increase in COLA.
My portfolio includes an international bond mutual fund and an international stock fund. Neither fund has a 10 year history. Instead, I want to use mean, variance, and beta values for the respective markets at large (since each fund is a passive broad index fund).
When I enter the pension as an annual amount in today's dollars, in the report, the amount is reduced for the subsequent years.
Not by intention but I ended up with 2 different portfolios having exactly the same components: 20% large cap stocks and 80% tips. In the Monte Carlo reports, the reported returns differ. Not by much, but they're different.
I'm considering a CRUT but am not sure how to handle the income. For withdrawals I'm experimenting with using Special Receipts dividing what could be received into ordinary income and capital gains and dividend components.
Can someone explain (or provide a reference where the doco explains) how to interpret the portfolio characteristics in the Monte Carlo reports? The mean and median returns are obvious but the ratio and beta are not, in light of the footnotes.
ESP recommends life insurance for me in the future but not now. The recommendation is that I have insurance coverage starting in 2025, when I start drawing SS at 70, through age 99 in 2054. The peak amount is about 100K in 2029, age 74.
I am currently 68 years old and am working. I will not receive SS benefits until I'm 70 1/2. I know that amount because I was told it when my wife began receiving spousal benefits.
Granted, I am 13 years older than her; but basically we want to leave everything to each other. Is there is some assumption input that maybe I have entered that is causing this?
For example, the case study "Pay Off Your Mortgage" at http://www.esplanner.com/case-studies/pay-your-mortgage says "ESPlanner can also be used to consider gradually paying off your mortgage, but doing so more rapidly than orig
I may have asked this before but don't remember the answer and can't find it here. The topic may help other users, anyway.
I've used E$Planer for several years, but just setup contingent planning for the first time. My spouse and I are just past our mid-fifties and she's currently out of the work force.
ESPlannerPro is telling me that our living standard per adult now (I am 56, my wife is 62) should be about $29,000 per year. When we are both retired, the recommendation is for over $72,000 per year. This make no sense to me.
According to the SSA, (http://www.ssa.gov/pubs/EN-05-10007.pdf) if you receive a pension from a federal, state or local government based on work where you did not pay Social Security taxes, your Social Security spouse’s or widow’s or widower’s
I've checked through the forum and have ask specifically on this issue, but still can't figure how to account for a Capital Loss Carryover. As an example, let say your Regular Assets consists of $1M dollars of Mutual Funds throwing off $30K in annual income from Capital Gains and Dividends.
I would like to do some what-if scenarios such as "what-if I don't have a pension." I'd like to do this without erasing any data, thus the reason to create a new profile and erase some data from it to see the result.
If you have a Roth 401k and a regular Roth IRA, do you just sum them and put the total in the Roth IRA field? (Assuming that's correct, I suggest re-labeling the field and report column to Roth IRA/401k.) Thanks!
In my reports Details>Taxes page, FICA taxes appear after my wife and I turn 70. We will have no income from labor (last labor earnings entry was for 2011), just from investments, pensions and social security. What is meaning of the FICA entries?