The simple version is none of those actually align/use VPW as implemented in the "Retirement" worksheetHi SnowBog. I appreciate reading your inputs. However, it dawned on me, if this tool "doesn't work for me [in reference to you]," then why are you continuing to use it vs. various other models? And further, if it is not working for you, why have to go to such an extent to try to make it even work for you vs. use another tool? There are tons of other tools (FiCalc come to mind)
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My response is meant with respect. Not an attack. Just questions I ponder as I read your responses.
FICalc as an example offers "VPW", and to my understanding, uses the "original" implementation that ends up distributing 100% of the portfolio by a specific age. The Retirement spreadsheet no longer does that, it instead caps the annual withdrawal. So they aren't the same thing...
And that's before you look at FICalc supporting the concept of a "floor" (withdraw at least $X) and a "ceiling" (withdraw no more than $Y). IMHO at that point it no longer represents VPW, as you can't force an arbitrary floor/ceiling into the model.
Additionally, part of my love of VPW is the simplicity of the model, especially as delivered through the Retirement worksheet. My spouse has zero interest in finances. I need something as simple as VPW for them to simply enter in one number (portfolio balance, others like age are already calculated for them in my version), validate others like retirement income haven't changed, and get "guidance" on the "variable amount" they can spend for the year.
So my goal/aspiration is to find something that works within/with the VPW spreadsheet.
Now hopefully, my spouse will never see/touch the Accumulation sheet, as either we'll retire before then, or my life insurance should be enough they can retire when I'm gone... (They know I'm worth more dead than alive to them...
)And candidly I use a bunch of tools/module, my own, various free and paid options such as things like FICalc, Parlana, RPM, eMoney, and others. That's in part why it's "intuitive" to me that the recommendations from the Accumulation worksheet with my "income" don't make sense - all other models are directionally aligned that we are very close to being able to retire - including VPW's Retirement worksheet.
And why I'm comfortable that my adaptation, and the result it creates, "makes sense" - because it realigns the output with what I see when I look at the Retirement sheet - or a myriad of other tools I've used.
For clarity, they are all different, have a range of outcomes/recommendations. They don't all "match" with any level of specificity. But they do all generally agree that we are very close to being able to retire under most reasonable expectations, and don't really need to "save" more. We just need some combination of additional time/growth (and also reduced years to withdraw from portfolio) and/or extra savings.
Statistics: Posted by SnowBog — Mon Feb 26, 2024 2:23 pm — Replies 2226 — Views 592241