Retiree Portfolio Model

[Rudbeckia]

New user here. Have been spending time with RPM using LibreOffice Calc and this tool is going to be very helpful. Can anyone tell me if RPM works well with Office Home & Student 2021? Thanks.

[BigFoot48]

New user here. Have been spending time with RPM using LibreOffice Calc and this tool is going to be very helpful. Can anyone tell me if RPM works well with Office Home & Student 2021? Thanks.

RPM is developed and maintained with Excel 2013 so any version after that should run it. Enjoy!

[thor111]

Quick dumb question: I've been using RPM successfully (I think) for several years with the manually entered Roth conversion amounts, but depending on what I enter for inflation, and stock returns always struggle with circular references on my taxable account balance. I'm trying to incorporate the automatic transfer between IRA1 and taxable to sustain expenses, but can't seem to get it to kick in. My question is:

What is the minimum entry to get the automatic withdrawal to function? I'm assuming this should work fine with the manually entered RMD amounts. Am I missing something here?

[BigFoot48]

Quick dumb question: I've been using RPM successfully (I think) for several years with the manually entered Roth conversion amounts, but depending on what I enter for inflation, and stock returns always struggle with circular references on my taxable account balance. I'm trying to incorporate the automatic transfer between IRA1 and taxable to sustain expenses, but can't seem to get it to kick in. My question is:

What is the minimum entry to get the automatic withdrawal to function? I'm assuming this should work fine with the manually entered RMD amounts. Am I missing something here?

It's difficult to say why you are having these issues. The annual "IRA Withdrawal" start age, amount and years need to be set to avoid a "negative balance" error message. Minimum amount is $100.

The circular calculation error message can occur if the Taxable account has a negative balance. It MUST be positive in every year. Adjust expenses and IRA etc withdrawals to insure no year is negative.

o help prevent the error message look at FIle/Options/Formulas, and make sure that the "Enable iterative calculation" option is selected, and the "Maximum Iterations" and "Maximum Change" were set equal to 1,000 to allow Excel to iterate around the circular reference problem until the negative Taxable balance issue is fixed. Thanks to DSBH for this insight.

[sdwaterman]

Bigfoot, I think I see an error on the Setup sheet, 'Federal Taxes' table (lines 392 to 431). Columns C and O are the total Federal taxes for the given year, including LTCG. But the formula for C392 (currently =SUM(D392:K392)) fails to include NIIT in the sum of Federal taxes. So I believe it should be C392=SUM(D392:L392) and O392=SUM(P392:X392). I suspect this was missed when NIIT was added to columns L and X. I understand this will not effect anyone without NIIT.

[BigFoot48]

Bigfoot, I think I see an error on the Setup sheet, 'Federal Taxes' table (lines 392 to 431). Columns C and O are the total Federal taxes for the given year, including LTCG. But the formula for C392 (currently =SUM(D392:K392)) fails to include NIIT in the sum of Federal taxes. So I believe it should be C392=SUM(D392:L392) and O392=SUM(P392:X392). I suspect this was missed when NIIT was added to columns L and X. I understand this will not effect anyone without NIIT.

Thanks for reporting this. The new NIIT tax was added to this normally hidden table but I failed to update the totals. I will fix and update the current version. No need for users to update for this informational table correction. I will add an NIIT amount to a future example data set to help insure that this new factor is fully documented.

[BigFoot48]

Version 23.1 was updated March 1. Corrected totals in Federal Taxes By Bracket schedule on Setup to include NIIT amounts. Thanks to sdwaterman for reporting it. No need for users to update unless they have NIIT taxes and are referencing the tax bracket schedule.

[Lee49]

I believe I have found a problem when calculating the RMD and using Table II if the owner is more than 10 years younger than the spouse. The problem occurs in cells Details!F576 and Details!G576 (thankfully the cells rows H576:AS576 are correct).
It is caused when doing a MATCH on the age of the owner from the range 'Tax Tables'!$G$317:G377 instead of 'Tax Tables'!$C$317:$C$377 and 'Tax Tables'!$G$317:G377 for the spouse instead of 'Tax Tables'!$E$317:$E$377. Then it indexes into 'Tax Tables'!$D$317:$D$377 instead of 'Tax Tables'!$F$317:$F$377.
This problem is duplicated in the Base tab as well.

[BigFoot48]

I believe I have found a problem when calculating the RMD and using Table II if the owner is more than 10 years younger than the spouse. The problem occurs in cells Details!F576 and Details!G576 (thankfully the cells rows H576:AS576 are correct).
It is caused when doing a MATCH on the age of the owner from the range 'Tax Tables'!$G$317:G377 instead of 'Tax Tables'!$C$317:$C$377 and 'Tax Tables'!$G$317:G377 for the spouse instead of 'Tax Tables'!$E$317:$E$377. Then it indexes into 'Tax Tables'!$D$317:$D$377 instead of 'Tax Tables'!$F$317:$F$377.
This problem is duplicated in the Base tab as well.

Thank you for reporting and describing the solution to this error. RPM 23.1 has been updated. Because of the limited nature of the problem most users do not need to update.

[pschaff]

Can you post an image or is that disabled in this forum?

Is there any way to auto fill conversion, ira withdrawal to fill at 24 or 32% bracket?

How can I optimize for lowest tax and highest ending portfolio?

Is there a recommended priority of transactions?
Use Roth to fund expenses?
Convert IRA to Roth?
Withdrawal from IRA vs Roth?

[FiveK]

Can you post an image or is that disabled in this forum?

See Posting images in the Bogleheads forum

[pschaff]

Is there any way to auto fill conversion, ira withdrawal to fill at 24 or 32% bracket?

How can I optimize for lowest tax and highest ending portfolio?

Is there a recommended priority of transactions?
Use Roth to fund expenses?
Convert IRA to Roth?
Withdrawal from IRA vs Roth?

[BigFoot48]

Is there any way to auto fill conversion, ira withdrawal to fill at 24 or 32% bracket?

How can I optimize for lowest tax and highest ending portfolio?

Is there a recommended priority of transactions?
Use Roth to fund expenses?
Convert IRA to Roth?
Withdrawal from IRA vs Roth?

As I replied when you sent me this question in a PM, "No, it's all do-it-yourself trying different entries to achieve your goals. It's self-optimization." I recommend using i-orp: https://www.i-orp.com/Plans/index.html. You might also try Firecalc: https://firecalc.com/

[crashdox]

Hi, I've been using RPM for a few months. Q regarding IRA "x" RMD and auto withdrawal. I have a scenario, using Roth conversions. On the details page, in a given year, the RMD on IRA 1 is 7400, and auto-withdrawal is 8800. Further down, the two values are then added together for taxable account changes (row 139) and also used in totaling in row 175 & 176.

My question is: if the auto withdrawal required is sufficient to satisfy the RMD, why would they be counted separately? I.e., should the 'withdrawal' simply be the minimum of the two amounts? (negative there, aka the most amount to be withdrawn.)

thanks

[BigFoot48]

My question is: if the auto withdrawal required is sufficient to satisfy the RMD, why would they be counted separately? I.e., should the 'withdrawal' simply be the minimum of the two amounts? (negative there, aka the most amount to be withdrawn.)

thanks

Thanks for that report. It appears the auto withdrawal calculation is failing to include the RMD in the calculation and is doubling up. Unfortunately I am in the middle of setting up a new computer and can't verify this at this time. Generally I recommend not using the auto withdraw feature as doesn't consider all the factors in the model that might impact the calculation.

[sidneyinplanning]

I believe I have found a problem when calculating the RMD and using Table II if the owner is more than 10 years younger than the spouse. The problem occurs in cells Details!F576 and Details!G576 (thankfully the cells rows H576:AS576 are correct).
It is caused when doing a MATCH on the age of the owner from the range 'Tax Tables'!$G$317:G377 instead of 'Tax Tables'!$C$317:$C$377 and 'Tax Tables'!$G$317:G377 for the spouse instead of 'Tax Tables'!$E$317:$E$377. Then it indexes into 'Tax Tables'!$D$317:$D$377 instead of 'Tax Tables'!$F$317:$F$377.
This problem is duplicated in the Base tab as well.

Thank you for reporting and describing the solution to this error. RPM 23.1 has been updated. Because of the limited nature of the problem most users do not need to update.

Glad to see the model is still strong and vivid. Congratulations.

[sidneyinplanning]

May I ask where is the link to the most updated version of this model. I played with it 8 or 9 years ago. But now I passed 65 and on the way to get social security, a new simulations is worthwhile. Thanks a lot.

[BigFoot48]

May I ask where is the link to the most updated version of this model. I played with it 8 or 9 years ago. But now I passed 65 and on the way to get social security, a new simulations is worthwhile. Thanks a lot.

Post #1 always has the latest version link. Social Security gets special attentions since I'm on it too.

[sidneyinplanning]

May I ask where is the link to the most updated version of this model. I played with it 8 or 9 years ago. But now I passed 65 and on the way to get social security, a new simulations is worthwhile. Thanks a lot.

Post #1 always has the latest version link. Social Security gets special attentions since I'm on it too.

Thanks. How much SS is taxable is amazingly crazy. That complicates the marginal tax rate in the portion of Roth conversion.

[MileKing]

My question is: if the auto withdrawal required is sufficient to satisfy the RMD, why would they be counted separately? I.e., should the 'withdrawal' simply be the minimum of the two amounts? (negative there, aka the most amount to be withdrawn.)

thanks

Thanks for that report. It appears the auto withdrawal calculation is failing to include the RMD in the calculation and is doubling up. Unfortunately I am in the middle of setting up a new computer and can't verify this at this time. Generally I recommend not using the auto withdraw feature as doesn't consider all the factors in the model that might impact the calculation.

Good to know regarding the auto withdraw feature. But how does one custom craft IRA withdrawals on a year by year basis for those of us who have "lumpy" income? Section 6 only permits a single value that can than be varied by a % up or down across a period of years. Section 10 seems to provide this functionality for the Roth Conversion account. Is there a similar function for traditional IRA withdrawals?

[BigFoot48]

Good to know regarding the auto withdraw feature. But how does one custom craft IRA withdrawals on a year by year basis for those of us who have "lumpy" income? Section 6 only permits a single value that can than be varied by a % up or down across a period of years. Section 10 seems to provide this functionality for the Roth Conversion account. Is there a similar function for traditional IRA withdrawals?

There is no yearly manual entries for IRA withdrawals except for the Roth conversion. As several yearly adjustments have been added over the years for income, expenses, etc. it might be reasonable to add an adjustment for IRA withdrawals. Will put that on the future changes list. Thanks for the suggestion.