This page is designed for near-retirees or retirees and intended to gauge your financial success in retirement.
Taxes are very specific to state and income levels. Websites such as AARP or SmartAsset offer great tools to help identify your tax obligations. Be sure to include them as part of your budget.
Our analysis adjusts your annual budget according to your expected inflation rate, which is deducted (net of social security) from your savings prior to calculating your annual return on investment.
Portfolio Withdrawal Rate - the percentage taken from savings during the first year of retirement. Ideally, this falls below 5%. We use the first year in which social security is collected.
We include inflation modeling to highlight the long-term surreptitious effect it has on your net worth. It not only increases your expenses, but devalues your portfolios.