Up to six retirement savings accounts. If you have more, you can combine similar accounts into a single entry (i.e., combining multiple brokerage accounts into one "Brokerage Accounts" entry).
The Planner supports 401(k), 403(b), Roth 401(k), Roth 403(b), IRA, Roth IRA, and Brokerage Accounts. For other accounts, select the type that performs most similarly.
Once you enter your birthdate, the Planner calculates your Full Retirement Age and displays it in the “Social Security” section on the “Personal Information Page”. Check www.ssa.gov to review your official statement and see your current benefit.
Taxable income goes into the “Other Sources of Taxable Income” section on the “Personal Information” page. Non-taxable income goes into the “Sources of Non-Taxable Income” section on the “Personal Information” page. Enter the start and end year.
Add it to the “Sources of Non-Taxable Income” section on the “Personal Information” page. Enter the start and end year.
Go to the “Personal Information” page, update the balances in the “Retirement Savings Accounts” section, and update “Today’s Date.”
Regardless of the order you enter your Retirement Savings Accounts on the “Personal Information” page, withdrawals follow the order you set on the “Analysis” page and only start when the account owner reaches age 59.5 and retires.
Enter taxable inheritance income under “Other Sources of Taxable Income.” Non-taxable income goes under “Sources of Non-Taxable Income.” Enter the start and end year.
Taxable bond income goes into “Other Sources of Taxable Income.” Non-taxable bond income goes into “Sources of Non-Taxable Income.” Enter the start and end year.
SoR uses actual historical investment returns, and SoI uses historical inflation rates. Both let you model your plan based on past economic conditions. In other words, if you choose to use SoR and you choose the SoR start year to be 1991, then the year following the year in which the first person retires, the investment market return would be the actual return as was in 1991 (based on the S&P 500), and succeeding years would follow, i.e. - 1992, 1993, 1994, etc. The purpose of using SoR or SoI is to see what occurred and how that would affect your retirement if that exact sequence happened again. It does not predict what will happen, only what could happen if those exact conditions were replicated.
Choose between a single fixed growth rate for each account, or Sequence of Returns (SoR), which uses actual historical returns starting from a year you select. For instance, if you choose the year 1978, investment growth will be based on actual S&P 500 returns beginning in the year 1978 and running through the end of your plan. For both growth models, the growth rate does not account for stock versus bond split percentages.
Most expenses grow annually based on the inflation rate you choose. Some categories have specific inflation rates, and, based on the information found in the "Analysis" page, the user can decide which rates to use.
Federal and state taxes are applied at simplified rates using current tax brackets. Federal rates are based on current law, with an option to revert to 2017 rates in 2026. Social Security is taxed according to current law. Specific deductions and credits are not included.
The Planner treats all Brokerage Account withdrawals as fully taxable, simplifying the process but resulting in slightly higher estimated taxes.
The Planner uses Social Security Administration formulas and fractional age rate tables for individual, spousal, and survivor benefits, making it highly accurate for general planning purposes.
Withdrawals follow your specified order, but only from accounts that are qualified (owner is age 59.5+ and retired). If an account is not qualified, it will be skipped over until it becomes qualified. After the account owner’s death, withdrawals can start when the survivor turns age 59.5.
RMDs are minimum withdrawals required from certain retirement accounts starting at age 73 (for year 2025).
RMDs are used to cover expenses first. Any excess RMD is available for reinvestment, gifts, or other uses and is referred to as “Distributable RMD”.
Pensions begin at age 65 and reduce by 25% after the pensioner’s death. State pension tax rules are also applied. Military pensions are handled in the same way.
Many retirement and financial planning experts and organizations recommend budgeting at least 15% of total annual expenses towards Medical/Medicare Expenses once a person reaches age 65. Calculations in this planner follow this guidance – once age 65 is reached, the "Medical, Optometry, Dental, Medicine, Medicare, etc." expense category equals 15% of total expenses. Medicare cost is not treated or calculated separately. It is included in the single category titled "Medical, Optometry, Dental, Medicine, Medicare, etc." Although income can affect the cost of Medicare, this planner is designed to simplify the accounting of all medical related expenses by putting them into one category. On the "Analysis" page, the user can elect to reduce this percentage by typing in a different percentage next to "Retirement Medical Costs as % of Total Expenses" in the "Scenario Comparison: variable inputs are in light blue cells" section at the top of the page.
A Roth Conversion moves pre-tax retirement money into a Roth account, triggering taxes that year. This can help reduce future taxes and leave tax-free inheritance.
The Vision and Hope™ Financial Planner provides a comprehensive Roth Conversion tool that incorporates many of the rules, regulations, and tax considerations involved in performing conversions. For more information, see the “Notes and Assumptions” page in the Planner.
Contributions are capped at the annual limit, and the Planner highlights overages. Tax deductions for IRA contributions are not included. There are many rules and limits regarding IRA and Roth IRA contributions, such as income limits. This planner does not consider those in its calculations.
The 4% Rule states that based on historical financial market averages, an investor should be able to withdraw on average 4% of their retirement savings accounts holdings on an annual basis (adjusted for inflation) and never run out of money.
No, account linking is not available.
The Planner is designed for traditional retirement after age 59.5, so it’s not ideal for early retirement planning.
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