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Author: sheople2 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Filling out Monte Carlo Based Calculator Date: 12/31/2007 12:12 AM
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Thanks to you both. You're very patient. Not that I don't appreciate every single opinion on this board because I do, but I'm hoping that only one or two of you help me on this or else I'll be overwhelmed. Unless of course, there is a blatant error that someone wants to correct.

I can only post once today. I will check back tomorrow or the next day. If you can keep replies short or in list form, that will help simplify. I'm not looking for dead accuracy. I'm looking to learn from this excercise and get general ideas of what's going on. Once I learn how to use this tool properly, I can always go back another time and noodle. I need help on practically all of the entries, Please note that in the many places I got stuck, I did click into the top right and read the documentation sections that explain how to use the fields. I'm still confused, so I wouldn't be insulted if you were to keep explanations simple as if you were explaining this to an eight-year old.

Current Age: 40

Retirement Age: not sure what to put here, as I'm currently on SSDI and "retired" now. Hopefully not for good, but we should assume worst case for this study. I would like to project to age 70.

Life Expectancy: 95 is the default, so we'll keep that.

Inflation: Average: 3.5% - A smart billionaire I know said that hard-nosed economists use this figure, so I guess I will too. Or should we use 4.35%?

Inflation: Std Dev: It defaults to 0. Keep on 0?

Investment tax rate: I've no idea. Should I ask my accountant? Or can we take an educated guess? I have a CD, some mutual funds and an individual stock. I posted my specific investments and amounts on another thread, although I will be doing some portfolio shifting this year.

Income Tax rate: I've no idea. I have not had a tax liability since going on SSDI. My current income is $15000 Social Security and usually a couple of thousand in interest income. No tax now. Maybe tax later? Given this, I don't know how to input.

Current Taxable Investments: $76,000 in mutual funds, individual stock and CD outside IRA.
(There's about 20K in individual stock, about $40K in CD, the rest in mutuals. I plan on changing allocation this year, but that needn't be addressed on this thread.)

Tax Deferred Investments: 0 ? no regular IRAs.

Tax Free Investments: $42,000 in a ROTH IRA.

Minimum IRA withdrawal age: I don't know. Use the default?

Taxable Annual Savings: $2000 is what I can probably manage to add to my mutual funds.

Tax Deferred Annual Savings: 0

Tax Free Annual Savings: 0

Investing Style: ? Although right now I guess it's "Moderate" I'll be moving money out of CD (all but $10K) and putting into mutual funds, so perhaps we should use "Above Average Risk"?

Then I clicked on Additonal Inputs. On this page:
Rate Type: Portfolio Return
Start Year: Start of Plan (?)
End Year: End of Plan (?)
Rate: 8% or should we use something else? I assumed this % before inflation and once I remove money from CD and put into mutuals.
Std. Dev: ?
I didn't know whether or not to utilize the other Rate Types in this dropdown menu.

I have to stop. Will finish tomorrow.

NO NEED to reply yet.
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