tag:blogger.com,1999:blog-7073066728112402191.post1073003187485184393..comments2024-03-26T02:08:50.592-05:00Comments on Observations: A Retirement Planning Calculator / SpreadsheetUnknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7073066728112402191.post-56011214778500494102012-08-08T12:44:46.856-05:002012-08-08T12:44:46.856-05:00TW,
Glad you like the spreadsheet. I think being ...TW,<br />Glad you like the spreadsheet. I think being able to see what is "going on under the hood" helps readers to understand how things really work, and gives them a better understanding of what some of the issues are.<br /><br />Sorry, but I'm not absolutely clear on where you're adding the after-tax value, so it's difficult for me to comment on the validity of your approach. Remember, the RMD is the MINIMUM distribution. Did you include a check to determine if you need to withdraw MORE than the minimum? <br /><br />Thanks for stopping by.Alhttps://www.blogger.com/profile/03349009181054767705noreply@blogger.comtag:blogger.com,1999:blog-7073066728112402191.post-66605188703225270112012-07-21T14:11:31.135-05:002012-07-21T14:11:31.135-05:00I really like this spreadsheet. Unlike most model...I really like this spreadsheet. Unlike most models, you can actually see what's going on under the hood. <br />I took a run at enhancing for the RMD. Added a "RMD Factor" column - the number you divide the IRA by to get the RMD, pulled from a website. Calculated the RMD. Then calculated the AFTER-TAX value of the RMD, multiplying by the retirement tax rate. <br />Then subtracted the RMD from the following year's IRA value and ADDED the after-tax value of the RMD to the following year's After-tax value. <br />Anybody have a comment on validity of that approach?Terry Weaverhttps://www.blogger.com/profile/00329013156928374877noreply@blogger.comtag:blogger.com,1999:blog-7073066728112402191.post-2762672127461635482009-12-19T16:11:06.144-06:002009-12-19T16:11:06.144-06:00Thanks for the heads-up. I included a sentence in ...Thanks for the heads-up. I included a sentence in the Notes-Assumptions section/tab of the spreadsheet that says "The model assumes you are never forced to take Required Minimum Distributions from your tax deferred accounts -- i.e., that your needed income is always at least as large as the required minimum." Unfortunately, you apparently only see that sentence when you're working in Google Documents/Spreadsheets. When you download to Excel, apparently all you see is the last word -- "minimum." Until I can figure out how to fix it, in Excel you only see the whole sentence if you edit that line (i.e., F2). <br /><br />More importantly, I think, the retirement planning calculator/spreadsheet <b>does</b> take taxes on the withdrawals into account; it uses the retirement income tax rate that you supply (withdrawals are taxed as ordinary income). <br /><br />My thinking was that most people will need to take more than the required distributions. If that's not the case, as you suggest, the model will overstate the "terminal values" (how much will be left at the end of your plan); as a result, your heirs may be disappointed. Luckily, among all of the potential problems in retirement planning, for most people that is one of the least worrisome....<br /><br />Thanks for stopping by my site.<br />AlAlhttps://www.blogger.com/profile/03349009181054767705noreply@blogger.comtag:blogger.com,1999:blog-7073066728112402191.post-40433296932640408702009-12-19T13:16:19.914-06:002009-12-19T13:16:19.914-06:00I looked at your spreadsheet....does it account fo...I looked at your spreadsheet....does it account for mandatory tax deferred investment portfolio withdrawals starting a 70.5 years and through the actuarial life less the taxes on the withdrawal? If not, that may have significant impact on terminal values.Anonymousnoreply@blogger.com