Retiree Portfolio Model question

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lomarica01
Posts: 98
Joined: Sun Jul 05, 2015 10:57 am

Retiree Portfolio Model question

Post by lomarica01 » Fri Aug 10, 2018 12:05 pm

I did a search and could not find what I am after so here is my post.
I downloaded this fascinating excel spreadsheet and have been playing with it for a few days. On purpose I entered a very high annual expense to see where the money would be withdrawn from. At first the program takes money from a taxable account until that runs out but then goes into a negative balance in the taxable account instead of taking money out of the IRA's. So the IRA's end up growing each year when in reality they would have to be sold to make up for the negative taxable account.
I understand I can enter the amount to be taken out of the IRA each year, but in doing this I still get a negative taxable account that accumulates each year.

what am I missing on how this works?

one more item, on the "sources of income" graph there is an pink item for Donations can someone explain what that is?

thanks so much any other advice on how to use the RPM is appreciated

MrDrinkingWater
Posts: 87
Joined: Tue Dec 23, 2014 11:30 am

Re: Retiree Portfolio Model question

Post by MrDrinkingWater » Fri Aug 10, 2018 1:08 pm

You might find answers to your questions in this thread: viewtopic.php?f=2&t=97352

You can also send a personal message to member BigFoot48.

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Peter Foley
Posts: 4460
Joined: Fri Nov 23, 2007 10:34 am
Location: Lake Wobegon

Re: Retiree Portfolio Model question

Post by Peter Foley » Fri Aug 10, 2018 9:43 pm

I've run numerous scenarios using RPM and feel I have a basic understanding of it.

If I remember correctly it tells you when you have a negative balance (red font on set up tab). At that point you would know that plan , aka model, is not going to work and you need to make adjustments. You have to work out the plan to your satisfaction.

i-orp is a bit different in that you enter data and it more or less gives you a recommended plan.

BigFoot can certainly provide you with more thorough guidance.

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