I don't see that. The result is labelled "Monthly Spending During Retirement" just like with the TPAW results, but it definitely is NOT including SS. The result is just showing the amount being spent from the portfolio. If I put $1M, 50/50 AA, plus $2400/mo of SS, 4% WR, and the start date as now, then it says I have $3333 per month to spend. When I hit "Show funding sources" it breaks it down to $2400 in SS and $933 from the portfolio. To me it looks like either an error, or unclear labeling.The SWR results in TPAW Planner incorporate all sources of income, not just the portfolio portion. For example, if the success rate of spending $X per month is 60% with the portfolio alone, then adding Social Security will increase the success rate above 60%. Keep in mind that the withdrawal rate is an input into the SWR strategy. You'd need to manually increase it beyond $3,400 and observe the resulting success rate (and ideally the resulting spending graph as well) and find the withdrawal rate that produces an acceptable success rate (and spending graph.)Another question that I can't find answered...(Playing with TPAW Planner a lot since I discovered it--great program/site!)
When I select SWR, the results only show the portfolio portion of income. It seems a little apples-to-oranges when my monthly spending using TPAW methods includes Social Security and other income sources, and SWR doesn't. A $1M portfolio plus $3000/mo of SS gives a TPAW spending rate of $6300/mo and a SWR spend of $3400. Am I missing something?
And I can't tell at all what is happening when I look at "Portfolio Balance." The ending balance in the 5th percentile is $500k using Monte Carlo, and $800k using historical, which would be awesome, but which seems to contradict my understanding of the expected outcome of rigidly adhering to a 4% WR.
Statistics: Posted by VtDoc — Thu Jun 27, 2024 4:57 am — Replies 784 — Views 227071