No. of Recommendations: 1
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.
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.