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Author: jerrykrishart Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: retirment planning calc. results can't be right? Date: 10/22/1999 2:53 PM
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I went through the retirement planning "school" and then used the retirement planning calculator. Needless to say, I just don't believe the results, especially when I look at the results after I did a recommended modification.

Any suggestions on what's happening or should I just ignore the Fool in this case?

NOTEPAD copy of what I got follows:>>>>>>

ORIGINAL INPUT YIELDED THIS RESULT:

Your living expenses after retirement will be funded until you are
57 years old. Thereafter, income from Social Security and pensions,
if any, will only cover 39% of your living expenses.

To fund your retirement for 42 year(s) and 0 month(s) and still leave
$0 for others to inherit, you and your spouse will need to:

Decrease your current spending in order to increase your savings to
$-0 per month.
Decrease your spending during retirement by $791 per month -or-
Work for an additional 2 year(s) before retiring. -or-
Work during retirement and earn roughly $1,528 per month for 8 years.
-or-
Invest at a higher rate of return. -or-
Shift your investments into tax-deferred investments. -or-
Decrease the amount you wish to own at your death. -or-
A combination of the above.


SO I CHANGED RETIREMENT AGES BY 2 YEARS AND GOT:

Congratulations! You will able to pay your expenses throughout
retirement and leave $20,801,782 for others to inherit.


NOT BELIEVING THAT WORKING 2 MORE YEARS WOULD NET ME $20.8M,
I THEN RESET AND CHANGED RETIREMENT EARNINGS FOR 8 YEARS AND GOT:

Congratulations! You will able to pay your expenses throughout
retirement and leave $274,616,022 for others to inherit.


I DEFINETLY DON'T BELIEVE THIS!!!!

BASED UPON THE TWO "CHANGES" I DON'T EVEN BELIEVE THE INITIAL RESULTS.

ANYONE HELP?????

THANKS,

JERRY
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Author: UUinMN Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14778 of 75335
Subject: Re: retirment planning calc. results can't be ri Date: 10/25/1999 5:01 PM
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$274 Million "for others to inherit". Cool! Put me on the list of "others", OK?

Seriously, jerrykrishart, I can imagine a possible cause of this, un, windfall. If you used an unreasonably high number for return on your retirement investments, like 80% per year. Or perhaps you entered some other number that was unreasonably high. Without sitting behind you and watching you fill in the screen, I can't say for sure. I suggest you look over the whole process again, or get someone else to go through it with you.

Hope this helps.

Michael

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Author: jerrykrishart Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 14780 of 75335
Subject: Re: retirment planning calc. results can't be ri Date: 10/25/1999 5:10 PM
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Thanks and I'll put you on the waiting list to inherit.

What I used for rate or return was 20% (using a lower number than the Foolish Four 25 and 10 year rolling averages just to be safe).

I used Quicken's planner and had to make about $45K per year vs. $18K from the Fool's source, even so.....

I've been given other sources to check out, such as CNNfn, before I check with a planner.

What we're trying to see is if we can "move to our mountain home and slow down our life's pace" now vs. later.

Thanks again.



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