Personal Investments • Please help, not sure what I'm doing

@ bonesly - Thank you so much for your reply!

It's always nice to hear that feedback was useful. You're very welcome!

I notice in your example you have her IRA listed with $238,000; she has $283,000 in that VTSAX. The VIMAX taxable joint fund we share only has $81,000 in it. I will spend some time with these graphs and get a better understanding of what you are showing me here.

Sorry for the transposition error! I can certainly redo that, but perhaps it would be better for you to try and replicate the Proposed section with the AA Current & Proposed sheet I linked earlier (and using the correct totals for Her Trad IRA and the Joint Taxable accounts!). If you get stuck let me know, and I'll post a correction for you.

My wife is 9 1/2 years younger than I am.

This is a significant change from the assumption that you're both about the same age, which would be a 26-year withdrawal phase, but she's looking at a 36-year withdrawal phase. Using the corrected current balance of $845K and her longer withdrawal period, the the SWR drops from 4.4% ($37.2K in year-1) down to 3.7% ($31.3K in year-1), but you should still be able to do some home projects and maybe take a vacation.

I do have a licensed copy of Excel on my laptop that I could use your model, that would be great.

I already linked the AA Current & Proposed spreadsheet, which is very simple. Here are the other models I use for Monte Carlo along with ones that are web-based.

Data and Models I use for Monte Carlo:
NYU Data Set 1928-2017 with Model Fits
Accumulation Monte Carlo
Withdrawal Monte Carlo <- image I posted earlier is this model

You'll need a MS Excel license; download to your local machine and enable macros (required for the 1,000 random trials and results aggregation).

I'm using my own model as I like to know what's under the hood, but there are other models I like that have public facing website interfaces:
Portfolio Visualizer's Monte Carlo (I like this one best),
FiCalc (probably easiest to use),
TPAW, and
FireCalc.

Statistics: Posted by bonesly — Tue Sep 10, 2024 1:17 am — Replies 10 — Views 1374

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