Copy this new Scenario to your Real Estate Financial Planner™ software:
A-01 100% Stocks (Variable), 10% Savings,
Earning is $70,000 per year. Taxes are national and Colorado: 24.71%. 10% of gross income assumed for savings. Therefore, $5,250 is what we need to target as monthly income in retirement.
The Scenario you want to copy into your Real Estate Financial Planner™ software has the following:
- 2 Accounts (including
Default Cash Account)
- 0 Properties
- 2 Rules
Once it is in your account, you can view detailed Charts for dozens of variables and edit any of the assumptions for Accounts, Properties, and Rules to run your own what-if Scenarios.
You can change things like:
- Adjust how much money you start with in any Account
- Model variable stock, bond and real estate rates of returns
- Change how many Properties you buy and when you buy them
- Set your own personalized target monhtly income in retirement to indicate when you reach financial independence
- Model receiving social security payments when you reach a certain age
- See what happens if there is a market crash or correction for your stocks, bonds and/or your real estate
- Tweak price and rent appreciation rates for individual Properties or all your Properties
- Find out what happens if you pay off your mortgages early... with cash flow each month or only when you have enough to pay off the Property in full
- Use equity in
Propertiesyou own to cash-out refinance and buy more Propertiesor invest it elsewhere
- Model buying more Properties than you need then selling off any extras to pay off the remaining Properties to achieve your own user-defined financial independence number
- Evaluate your own safe withdrawal rate and see how it impacts your investment plan
- And much, much more...
- Modeled for 720 months (60 years)
- 24.71% effective income tax rate
- 3% inflation rate
- 5.125% mortgage interest rate
- 3.25% yearly safe withdrawal rate (SWR)
- $5,250 minimum target monthly income in retirement (MTMIR) in today's dollars
- $20,000 ideal target monthly income in retirement (ITMIR) in today's dollars
Summary of assumptions for the Account in this Scenario.
- Account Name: VTSMX with CAGR of 8.97% over 1871-2017
- $0 starting account balance
- 8.97% yearly rate of return (at start)
- Asset Type: Cash
This scenario has no Properties.
These are the Rules included with this Scenario.
Paycheck and Personal Expenses
Ruleruns for the entire Scenario.
- Depositing both your paycheck and pulling expenses out of the same VTSMX with CAGR of 8.97% over 1871-2017.
- Both paycheck and personal expenses will be Inflation Adjusted.
- Gross paycheck is $5,833.33 Inflation Adjusted.
- Assuming a tax rate of 24.71% on your paycheck.
- Net paycheck (after taxes) is $4,391.91 Inflation Adjusted per month.
- The paycheck will stop when they reach "Financial Independence" (goal of Minimum Target Monthly Income in Retirement achieved).
- Personal expenses are $3,808.58 Inflation Adjusted per month.
Set Value On Accounts
Ruleruns for the entire Scenario.
- Changes the value of Yearly Rate of Return on VTSMX with CAGR of 8.97% over 1871-2017.
Rulesets the value of Yearly Rate of Return each month that it runs using a random number between -44.33 and 65.47 with a standard deviation of 18.300 in discrete steps of 0.100.
- However, values can never be lower than -44.330 and never higher than 65.470.
These are the
- Month 524 Achieved Financial Independence Goal