Retiree Portfolio Model

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

SUTT wrote: Sat Jan 04, 2025 1:00 pm Something to check on regarding the new taxing SS benefits changes. The DETAILS sheet formula for the first 5 results columns (cells F183-J183) specifies ">=" vs. "<=" as used for results columns 6+ (cells K183+). Those first 5 cells may have been missed in the previous correction to the new taxing SS feature.
This has been corrected. As this is a test option and early in the year I have kept the same version number 25.0. https://www.dropbox.com/scl/fi/j9ndm4zi ... 4ybij&dl=1
Last edited by BigFoot48 on Sat Jan 04, 2025 6:28 pm, edited 1 time in total.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

munemaker wrote: Thu Jan 02, 2025 1:08 pm Thanks for the updated model. What an amazing piece of work! I really enjoy RPM and spend hours wading through it.

I think I found an error, or maybe I just don't understand. It seems like LTCG is being counted twice in the state tax calculation.

I live in PA, where LTCG is treated as ordinary income which is taxed at a flat rate of 3.07%.

On the DETAILS tab, the first line in the STATE INCOME TAX section: "Fed AGI excl taxable SS benefits, pension 1 & IRA withdrawals" presumably includes LTCG.

Since PA taxes LTCG at the standard rate of 3.07%, on the SETUP tab, STATE INCOME TAX ADJUSTMENTS section, I entered 100% for "Capital Gains (LT) to include." Doing this seems to be double counting the LTCG. When I enter 0% for "Capital Gains (LT) to include," I get the number for PA income tax) I was expecting.

Also, here is a very small suggestion: On the RESULTS tab, In the "Income and Expenses" graph, the expenses are in blue. Right next to it is the "SS Benefits and Expenses" graph, the expenses are in red. This really plays with my head. I think it would be an improvement to have the expenses be the same color in both charts, particularly since they are side by side.

Thanks
MUN
Thanks for this report. It does indeed appear state Cap Gains can get doubled up. I will fix this somehow in the next update. Graph was modified in the current correct 25.0 version.
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munemaker
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Re: Retiree Portfolio Model

Post by munemaker »

BigFoot48 wrote: Sat Jan 04, 2025 2:50 pm
munemaker wrote: Thu Jan 02, 2025 1:08 pm Thanks for the updated model. What an amazing piece of work! I really enjoy RPM and spend hours wading through it.

I think I found an error, or maybe I just don't understand. It seems like LTCG is being counted twice in the state tax calculation.

I live in PA, where LTCG is treated as ordinary income which is taxed at a flat rate of 3.07%.

On the DETAILS tab, the first line in the STATE INCOME TAX section: "Fed AGI excl taxable SS benefits, pension 1 & IRA withdrawals" presumably includes LTCG.

Since PA taxes LTCG at the standard rate of 3.07%, on the SETUP tab, STATE INCOME TAX ADJUSTMENTS section, I entered 100% for "Capital Gains (LT) to include." Doing this seems to be double counting the LTCG. When I enter 0% for "Capital Gains (LT) to include," I get the number for PA income tax) I was expecting.

Also, here is a very small suggestion: On the RESULTS tab, In the "Income and Expenses" graph, the expenses are in blue. Right next to it is the "SS Benefits and Expenses" graph, the expenses are in red. This really plays with my head. I think it would be an improvement to have the expenses be the same color in both charts, particularly since they are side by side.

Thanks
MUN
Thanks for this report. It does indeed appear state Cap Gains can get doubled up. I will fix this somehow in the next update. Graph was modified in the current correct 25.0 version.
Bigfoot

Thank you for addressing this, and thanks again for making your work available to us

MUN.
rts58
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Re: Retiree Portfolio Model

Post by rts58 »

Hi, it looks like there may be a formula error for a current year inherited IRA. I put the beginning balance in Section 7 special events, and then set the age when event occurs to current age. This seemed to duplicate the amount inherited in the portfolio and showed an error equal to that amount in the Results tab "Portfolio Activity by Account" section. In the Details tab the inherited amount was showing up in the beginning balance cell F12 as well as the account changes section cell F105. To get it to work for me I modified the model by changing Details!F107 to =(+F105+F106)*0. This seemed to work fine for me but is not a fix for everyone.
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Re: Retiree Portfolio Model

Post by BigFoot48 »

rts58 wrote: Tue Jan 07, 2025 4:00 pm Hi, it looks like there may be a formula error for a current year inherited IRA. I put the beginning balance in Section 7 special events, and then set the age when event occurs to current age. This seemed to duplicate the amount inherited in the portfolio and showed an error equal to that amount in the Results tab "Portfolio Activity by Account" section. In the Details tab the inherited amount was showing up in the beginning balance cell F12 as well as the account changes section cell F105. To get it to work for me I modified the model by changing Details!F107 to =(+F105+F106)*0. This seemed to work fine for me but is not a fix for everyone.
Thanks for this report. So far I have not been able to duplicate it and may need more info. I set Your Age to 62, the year IRA1 is inherited to 62, and the Start Age to 63 (+1 required) and didn't see the errors. How do your settings differ?
Last edited by BigFoot48 on Tue Jan 07, 2025 5:25 pm, edited 1 time in total.
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yankees60
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Re: Retiree Portfolio Model

Post by yankees60 »

First time ever opening the file and looking at.

At first glance looks extremely comprehensive.

Thanks!
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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Re: Retiree Portfolio Model

Post by rts58 »

BigFoot48 wrote: Tue Jan 07, 2025 4:53 pm Thanks for this report. So far I have not been able to duplicate it and may need more info. I set Your Age to 62, the year IRA1 is inherited to 62, and the Start Age to 63 (+1 required) and didn't see the errors. How do your settings differ?
Well that's the issue. I didn't have the start age +1. I was trying to get the model to show an inheritance in the current year. Changing the start age to 62 will show the duplication. Thanks again for this awesome model.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

rts58 wrote: Tue Jan 07, 2025 7:57 pm Well that's the issue. I didn't have the start age +1. I was trying to get the model to show an inheritance in the current year. Changing the start age to 62 will show the duplication. Thanks again for this awesome model.
Glad that was it and you like RPM! Yes, it was modeled so the 10 year period starts the year after inheriting it as original owner may have already taken their RPM in the year they passed and the full 10 year RMD period should then best start in the next year.
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SpeedySRA
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RPM and taxes

Post by SpeedySRA »

Is there a way to force RPM NOT to use a Roth IRA account to pay taxes?
Thanks!
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BigFoot48
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Re: RPM and taxes

Post by BigFoot48 »

SpeedySRA wrote: Sat Jan 11, 2025 11:46 am Is there a way to force RPM NOT to use a Roth IRA account to pay taxes?
Thanks!
Roth Withdrawals enter the Taxable account which is used to fund tax payments so the only way to avoid Roth funds being used is to make sure other additions to the Taxable account are adequate to fund tax payments. At least that my first quick opinion.
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SpeedySRA
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Re: Retiree Portfolio Model

Post by SpeedySRA »

Thanks for the feedback.
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Rotwang
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Re: Retiree Portfolio Model

Post by Rotwang »

I noticed RPM V25.0 still has the 2024 values for the ACA Premium Tax credit Federal Poverty Levels. These are located in the Tax Tables tab in cells E80 & E81. I believe the 2025 numbers should be 15060 and 20440. I see they are user input cells (with the blue background) so was not sure if they are normally updated with the other tax numbers or left to the user, but this section is normally hidden so you will need to unhide with the macro in C26 if you want to edit the values.
For me, these old numbers were affecting the number of years I qualify for the ACA credits in the Setup tab cell E186.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

Rotwang wrote: Tue Jan 14, 2025 10:27 am I noticed RPM V25.0 still has the 2024 values for the ACA Premium Tax credit Federal Poverty Levels. These are located in the Tax Tables tab in cells E80 & E81. I believe the 2025 numbers should be 15060 and 20440. I see they are user input cells (with the blue background) so was not sure if they are normally updated with the other tax numbers or left to the user, but this section is normally hidden so you will need to unhide with the macro in C26 if you want to edit the values.
For me, these old numbers were affecting the number of years I qualify for the ACA credits in the Setup tab cell E186.
Thanks. It will be corrected today. Done - updated to 2025 values which weren't available earlier.
Last edited by BigFoot48 on Tue Jan 14, 2025 4:31 pm, edited 1 time in total.
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MariaT
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Re: Retiree Portfolio Model

Post by MariaT »

jocdoc wrote: Sun Dec 29, 2024 6:52 am
FiveK wrote: Sat Dec 28, 2024 10:38 pm Do the comments and the linked site in the Note: section in the Case Study Spreadsheet updates post help? Probably similar issues with both spreadsheets.
This is what the comments on the link you provided says:
It appears the simplest way to get around Microsoft's "helpful" macro block is described in the "Details can be found at..." link above (see that for a screen shot of step #3 below):
1. Open Windows File Explorer and go to the folder where you saved the file.
2. Right-click the file and choose Properties from the context menu.
3. At the bottom of the General tab, select the Unblock checkbox and select OK.

I don't have this option for excel.

edit: the only work around I found is to open the workbook in LibreOffice, enable macros there upon opening the Macro but others who grew up without spreadsheets would probably be helped with more clear instructions embedded in the workbook: step by step to enable macros.
I have the same issue and cannot run the latest version(25) of RPM, as well as previous file. Was there a follow-up solution to the above? I'm running Excel version 2019 if that helps. Is LibreOffice the only work around? I would prefer to stay with Excel but I'm open to change, I guess.
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Re: Retiree Portfolio Model

Post by jocdoc »

After you enable macros with libre office you save ihe file as an excel file. When you then reopen the file in Excel the Macros are enabled and you can just work in excel.
I
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Re: Retiree Portfolio Model

Post by MariaT »

jocdoc wrote: Tue Jan 14, 2025 3:37 pm After you enable macros with libre office you save ihe file as an excel file. When you then reopen the file in Excel the Macros are enabled and you can just work in excel.
I
Great. I will do that.

Thank you!
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Re: Retiree Portfolio Model

Post by SUTT »

When following the 3 step Properties/Unblock process noted above, please take note of having to do this file properties process using the File Explorer in Windows (vs in Excel via something like File / Open, etc.). The " I don't have this option for excel" response seems to indicate the proper app is not being used to change the file property.
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Re: Retiree Portfolio Model

Post by jocdoc »

Sutt: I tried this procedure in file explorer in windows 10 and did not have the option described to enable Macros.
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Re: Retiree Portfolio Model

Post by SUTT »

Unblock is a setting found in the properties of a file downloaded from another computer that allows one to override a security block placed on the file by Windows. Marking the Unblock checkbox tells Windows that you trust this file. Once the file is marked as safe, the Unblock checkbox and associated messaging will go away (see before / after example pic below). The forementioned posts noting use of Libre or some alternate actions may alter this setting, so look for the Unblock setting to exist right after performing a clean download of the file.
Image
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Re: Retiree Portfolio Model

Post by jocdoc »

yes now I have this option with a new copy. of the spreadsheet. Thanks very much. I had searched the web for months and could not find a way to do this.
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Re: Retiree Portfolio Model

Post by maineminder »

I'm very close to having waded through this incredible piece of work to model my portfolio. Thanks to everyone involved.

I'm sure this has been asked, but a search doesn't result in anything that seems relevant to my copy, version 25.0 1/4/25.

I spend my dividends. The tax calculation seems correct, since I've given it the proper ordinary dividends, tax free and qualified dividends.

By design these dividends are rolled into my taxable account and are not included in my income for that year. The result is my total income - expenses is off by the amount of the dividends and my taxable account is growing by the dividends ( and compounding)

How do I model the withdrawal from my taxable account such that income - expenses is correct including these dividends? Is there another strategy?
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

maineminder wrote: Sun Jan 19, 2025 3:46 pm I'm very close to having waded through this incredible piece of work to model my portfolio. Thanks to everyone involved.

I'm sure this has been asked, but a search doesn't result in anything that seems relevant to my copy, version 25.0 1/4/25.

I spend my dividends. The tax calculation seems correct, since I've given it the proper ordinary dividends, tax free and qualified dividends.

By design these dividends are rolled into my taxable account and are not included in my income for that year. The result is my total income - expenses is off by the amount of the dividends and my taxable account is growing by the dividends ( and compounding)

How do I model the withdrawal from my taxable account such that income - expenses is correct including these dividends? Is there another strategy?
Glad you like the model. Go to the 8. Income Tax section on Setup to see how capital gains are set and included. There is a GoTo link to the Details page where the tax on the gains is calculated. Be sure to read cell notes for additional information. See if this helps with your situation.
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maineminder
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Re: Retiree Portfolio Model

Post by maineminder »

BigFoot48 wrote: Sun Jan 19, 2025 4:28 pm Glad you like the model. Go to the 8. Income Tax section on Setup to see how capital gains are set and included. There is a GoTo link to the Details page where the tax on the gains is calculated. Be sure to read cell notes for additional information. See if this helps with your situation.
I see now. In my mind the dividends would be on top of the return on the taxable account. Not the case here. I think my mind has been changed....

Thanks!
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Re: Retiree Portfolio Model

Post by maineminder »

Two things I've noticed and maybe someone can either correct me if I'm wrong, or suggested an alternative approach.

The calculation for the estimated future social security benefit seems incorrect to me. It appears it is using my PIA (obtained from my social security statement) and increasing the benefits for four years (66-70, or 48 months) rather than using the number of months to when I reach my full retirement age to age 70. For me this is 38 months; It should be (PIA*(1+(1+38*(.08/12)))*(1+SS_Cola)^4 rather than (PIA*(1+(1+48*(.08/12)))*(1+SS_Cola)^4, which RPM appears to be using. This throws off my social security income for that year and every year that follows. I've verified my calculation using opensocialsecurity.com with a SS_Cola of 0%.

My spouse has already started her benefit, albeit reduced. As suggested in the hover help, I have added an annual benefit for my spouse and stated that it should start at age 70 (we' both turn 70 within the same calendar year). The additional benefits when she turns 70 uses the total cola adjusted amount for the entire year, rather than starting it in the moth she turns 70 ( (Future_Benetifs/12)*(Number of months age 70 within the year)). This also throws off the total income for that year and everything else that follows.

Is my understanding correct and is there another strategy to get this correct? Can I live with this? Sure. But, this little discrepancy is bugging me....

Thanks!
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

maineminder wrote: Thu Jan 23, 2025 12:42 pm Two things I've noticed and maybe someone can either correct me if I'm wrong, or suggested an alternative approach.
............

Is my understanding correct and is there another strategy to get this correct? Can I live with this? Sure. But, this little discrepancy is bugging me....

Thanks!
Thanks for this report. At the present time the Social Security benefits are calculated by year, with months not supported. This is noted in the comments in the SS section: "months not supported". It might be a beneficial modification in a future update so I will add it to the list.
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chassis
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Re: Retiree Portfolio Model

Post by chassis »

Thank you BigFoot48 for this tool! For my purposes it is by far the best tool available.
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Re: Retiree Portfolio Model

Post by rutrow2015 »

Amazing tool.

Can anyone point out how to set up the ACA subsidy correctly? I've never gotten it to show that we are eligible. I've not found where to enter the SLCSP/ current premium information.

TIA
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

rutrow2015 wrote: Fri Jan 24, 2025 6:25 am Amazing tool.

Can anyone point out how to set up the ACA subsidy correctly? I've never gotten it to show that we are eligible. I've not found where to enter the SLCSP/ current premium information.

TIA
The ACA setting is on the Tax page in the Current Year Tax Factors and the normally hidden Medicare IRMAA section. The "go to IRMAA" button on Setup will take you there. Unhide the section to set the ACA subsidy. SLCSP (Second Lowest Cost Silver Plan) is not specifically modeled in RPM.
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maineminder
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Re: Retiree Portfolio Model

Post by maineminder »

BigFoot48 wrote: Thu Jan 23, 2025 1:37 pm
Thanks for this report. At the present time the Social Security benefits are calculated by year, with months not supported. This is noted in the comments in the SS section: "months not supported". It might be a beneficial modification in a future update so I will add it to the list.
Thanks BigFoot. I saw that comment and didn't understand what it meant. If it said "Starting month not supported" or some such words I would have understood the implication.
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RPM Set-up

Post by Twinner »

[merged into the RPM master thread - moderator prudent]

I'm new to this forum and the awesome tools, please forgive what is likely an ignorant question. I am in the set-up page of the RPM tool. I am confused by the RMD input for cell J47, which asks for the IRA balance 1 year prior to collecting RMD. I am 20 years away from RMD, and will do Roth conversions during this period as well. What would I enter here - do I leave blank? do I estimate somehow? Thank you!
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Re: Retiree Portfolio Model

Post by jocdoc »

Sorry for this dumb question. iF i want to model a management fee drag on the portfolio do I just reduce the projected return by the management fee? I did not see another section to insert this expense.
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Re: RPM Set-up

Post by BigFoot48 »

Twinner wrote: Tue Jan 28, 2025 12:29 pm [merged into the RPM master thread - moderator prudent]

I'm new to this forum and the awesome tools, please forgive what is likely an ignorant question. I am in the set-up page of the RPM tool. I am confused by the RMD input for cell J47, which asks for the IRA balance 1 year prior to collecting RMD. I am 20 years away from RMD, and will do Roth conversions during this period as well. What would I enter here - do I leave blank? do I estimate somehow? Thank you!
Yes, you need to estimate what the IRA balance will be at the end of the year before RMD starts.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

jocdoc wrote: Tue Jan 28, 2025 1:55 pm Sorry for this dumb question. iF i want to model a management fee drag on the portfolio do I just reduce the projected return by the management fee? I did not see another section to insert this expense.
Yes, the return rate entered should be net of any management fee.
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maineminder
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Re: Retiree Portfolio Model

Post by maineminder »

Feel the need to once again thank everyone involved in this piece of work. I've spent way too much time looking at how everything is calculated and found quite a few shortcomings in the set of spread sheets I've created.

My main goal was to understand how if Roth conversions made sense in my case, but this forced me to look at all my finances over my 30 year plan.

Thanks!
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Re: Retiree Portfolio Model

Post by arnbogle »

Does this version consider IRMAA when converting to Roth? I used an earlier version but didn't consider the IRMAA impact, which was substantial.
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Re: Retiree Portfolio Model

Post by arnbogle »

Sorry, I see that v.25.0 does include IRMAA. Thanks.
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Re: Retiree Portfolio Model

Post by arnbogle »

One small follow-up concern: The Roth conversion calculator doesn't consider that conversion triggers IRMAA. Adding it to expenses is reasonable, but it doesn't capture the full impact of conversion vs. no conversion. For example, if maximizing the 24% tax bracket with conversion, the resulting taxable income will not reflect about $2500 in IRMAA fees for a couple - so the "tax" cost of conversion is slightly underestimated. Seems like this might affect the comparison conclusions in situations where the comparison is close.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

arnbogle wrote: Sat Feb 01, 2025 12:47 pm One small follow-up concern: The Roth conversion calculator doesn't consider that conversion triggers IRMAA. Adding it to expenses is reasonable, but it doesn't capture the full impact of conversion vs. no conversion. For example, if maximizing the 24% tax bracket with conversion, the resulting taxable income will not reflect about $2500 in IRMAA fees for a couple - so the "tax" cost of conversion is slightly underestimated. Seems like this might affect the comparison conclusions in situations where the comparison is close.
Thanks for reporting that. I will see if that can be fixed for the next update.
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arnbogle
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Re: Retiree Portfolio Model

Post by arnbogle »

And a question:

I don't expect to be around many more years, and without Roth conversion my wife will inherit a substantial traditional IRA with a 10-year RMD schedule, so taxes will increase substantially. That's my reason for using the calculator. There are several cells with comments that mention spousal inherited IRAs, but I can't tell whether it's already handling the change automatically, or whether I'm supposed to enter an amount in an Inherited IRA "event" cell - so I don't know whether I would be doubling the actual IRA amount in play. A related question: when I enter an expected death age for myself, the calculator continues to report estimates beyond that year as mine rather than my spouse's. Is that OK?
Thanks for this great product!
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skipper
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Re: Retiree Portfolio Model

Post by skipper »

EDIT: Disregard this post, but I'm leaving it for posterity. You answered this a few posts above and I acknowledged it below. The answer is to reduce the nominal return by the AUM to get a net return on the IRA. Thanks @jocdoc and @BigFoot48

@BigFoot48 question about properly accounting for an AUM fee. In this model, there are only Taxable and IRA1 accounts; IRA1 and SS are the only sources of income. The advisor takes AUM directly from IRA1, so it reduces portfolio value, but it isn't actually "withdrawn" by the retiree where the Taxable account would need to cover it as an expense (I think). I would rather not budget it as a living expense AND I would like to use automatic withdrawals in the model if possible.
  • Am I overthinking this and should leave it as budgeted expense? Difficulty is the AUM changes with IRA1 account value (real) and is not tied to only inflation like an expense. So as time passes and the account is depleted, the AUM goes down instead of up.
  • Maybe it's better as an expense adjustment? It's a 1% AUM, so I could get an estimated annual number multiplying by the average of the starting and ending IRA1 balances, Rows 338 and 353 of the Detail tab. The amount looks better- this might be the answer...
  • Do you have a better suggestion?
I just started using RPM to help my mom who is deep into retirement. RPM is great for me as a forecasting accumulator, but I've learned much more about it today working on mom's model. Great tool, thank you!
Last edited by skipper on Sun Feb 02, 2025 1:54 pm, edited 2 times in total.
by Hyperchicken » Tue Feb 13, 2024 | | ... Dang. That rat and pellet thing is pretty depressing. | Guess I better get back to work.
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Re: Retiree Portfolio Model

Post by jocdoc »

I have no answer here but wouldn't the AUM IRA fee also be in your example count as an expense from the taxable account? Ie both AUM fees are taken from taxable account.
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skipper
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Re: Retiree Portfolio Model

Post by skipper »

BigFoot48 wrote: Tue Jan 28, 2025 4:53 pm
jocdoc wrote: Tue Jan 28, 2025 1:55 pm Sorry for this dumb question. iF i want to model a management fee drag on the portfolio do I just reduce the projected return by the management fee? I did not see another section to insert this expense.
Yes, the return rate entered should be net of any management fee.
jocdoc wrote: Sun Feb 02, 2025 1:40 pm I have no answer here but wouldn't the AUM IRA fee also be in your example count as an expense from the taxable account? Ie both AUM fees are taken from taxable account.
Thank you for your "no answer". As it turns out, the answer you got upthread was the answer I was looking for. How elegant to just reduce the nominal return by the AUM! Duh, why couldn't I think of that?
by Hyperchicken » Tue Feb 13, 2024 | | ... Dang. That rat and pellet thing is pretty depressing. | Guess I better get back to work.
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skipper
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Re: Retiree Portfolio Model

Post by skipper »

@BigFoot48 remind me; once money hits the Taxable account it can't go anywhere else except expenses, correct? In my mom's model, I'm using it to represent checking and Roth1 to represent savings. I wanted to take the surplus after RMDs and expenses each year and put it somewhere else; essentially having a floor and a ceiling on the Taxable account. IIRC, you can't do that. I tried tricking Roth Conversions into doing what I want, but it didn't work. Any suggestions?
by Hyperchicken » Tue Feb 13, 2024 | | ... Dang. That rat and pellet thing is pretty depressing. | Guess I better get back to work.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

arnbogle wrote: Sun Feb 02, 2025 12:17 pm And a question:

I don't expect to be around many more years, and without Roth conversion my wife will inherit a substantial traditional IRA with a 10-year RMD schedule, so taxes will increase substantially. That's my reason for using the calculator. There are several cells with comments that mention spousal inherited IRAs, but I can't tell whether it's already handling the change automatically, or whether I'm supposed to enter an amount in an Inherited IRA "event" cell - so I don't know whether I would be doubling the actual IRA amount in play. A related question: when I enter an expected death age for myself, the calculator continues to report estimates beyond that year as mine rather than my spouse's. Is that OK?
Thanks for this great product!
Briefly, withdrawals from IRAs held by either person will continue after the owner's passing based on the remaining modeling years. These withdrawals may not be entirely accurate as the actual spouse life expectancy may not be the remaining modeling years.
Inherited IRAs are from other persons, not the spouse.
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 19-time loser
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

skipper wrote: Mon Feb 03, 2025 7:36 am @BigFoot48 remind me; once money hits the Taxable account it can't go anywhere else except expenses, correct? In my mom's model, I'm using it to represent checking and Roth1 to represent savings. I wanted to take the surplus after RMDs and expenses each year and put it somewhere else; essentially having a floor and a ceiling on the Taxable account. IIRC, you can't do that. I tried tricking Roth Conversions into doing what I want, but it didn't work. Any suggestions?
No other options in the current version. The excess funds remain in Taxable and earn returns based on the entered rate.
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 19-time loser
jocdoc
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Re: Retiree Portfolio Model

Post by jocdoc »

BigFoot:
Thanks for your model. I find it very useful.
Would you please consider adding a macro to toggle between today's dollars and future dollars. Thanks very much for your hard work and consideration to this request.
arnbogle
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Re: Retiree Portfolio Model

Post by arnbogle »

BigFoot48 wrote: Mon Feb 03, 2025 7:55 am
arnbogle wrote: Sun Feb 02, 2025 12:17 pm And a question:

I don't expect to be around many more years, and without Roth conversion my wife will inherit a substantial traditional IRA with a 10-year RMD schedule, so taxes will increase substantially. That's my reason for using the calculator. There are several cells with comments that mention spousal inherited IRAs, but I can't tell whether it's already handling the change automatically, or whether I'm supposed to enter an amount in an Inherited IRA "event" cell - so I don't know whether I would be doubling the actual IRA amount in play. A related question: when I enter an expected death age for myself, the calculator continues to report estimates beyond that year as mine rather than my spouse's. Is that OK?
Thanks for this great product!
Briefly, withdrawals from IRAs held by either person will continue after the owner's passing based on the remaining modeling years. These withdrawals may not be entirely accurate as the actual spouse life expectancy may not be the remaining modeling years.
Inherited IRAs are from other persons, not the spouse.
I think spousal inherited IRAs must be withdrawn in 10 years regardless of spouse's age unless s/he is more than 10 years younger than the deceased spouse.
arnbogle
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Re: Retiree Portfolio Model

Post by arnbogle »

arnbogle wrote: Mon Feb 03, 2025 11:40 am
BigFoot48 wrote: Mon Feb 03, 2025 7:55 am
Briefly, withdrawals from IRAs held by either person will continue after the owner's passing based on the remaining modeling years. These withdrawals may not be entirely accurate as the actual spouse life expectancy may not be the remaining modeling years.
Inherited IRAs are from other persons, not the spouse.
I think spousal inherited IRAs must be withdrawn in 10 years regardless of spouse's age unless s/he is more than 10 years younger than the deceased spouse.
Sorry, my bad. The 10 year rule is now only for non-spousal heirs.
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BigFoot48
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Re: Retiree Portfolio Model

Post by BigFoot48 »

jocdoc wrote: Mon Feb 03, 2025 9:55 am BigFoot:
Thanks for your model. I find it very useful.
Would you please consider adding a macro to toggle between today's dollars and future dollars. Thanks very much for your hard work and consideration to this request.
I don't understand what that would be. Living Expenses have an inflation adjustment. If someone is starting the model say 10 years from now they would need to estimate values then. Can you explain future dollars?
Retired | Two-time in top-10 in Bogleheads S&P500 contest; 19-time loser
jocdoc
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Re: Retiree Portfolio Model

Post by jocdoc »

I have trouble wrapping around the large numbers towards end of life calculated by the planner. The numbers in my 80's are future dollars. (maybe I used the wrong term)
I would prefer to see the dollars in today's purchasing power dollars.
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