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SS 003 Investing $100,000 in Stocks at 8.97%/yr and Earning and Spending $5,000/mo and Social Security Starting in Feb, 2040

You have a stock market account that has $100,000 invested at the start. It is earning 8.97% per year fixed and that does not change. You are earning $5,000 per month with an effective tax rate of 18.84% and you are spending every penny of your earnings and not saving anything at all. In Feb, 2040 you start receiving an additional monthly income from your social security benefit of $1,200 in today's dollars (adjusted for inflation when you receive it).

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

Please register for a Forever Free Account or Login to your existing Real Estate Financial Planner™ software to copy this  Scenario into your account.

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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  Properties you own to cash-out refinance and buy more  Properties or 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...

Scenario

  • Modeled for 720 months (60 years)
  • 18.84% effective income tax rate
  • 3% inflation rate
  • 4.875% mortgage interest rate
  • 4% yearly safe withdrawal rate (SWR)
  • $5,000 minimum target monthly income in retirement (MTMIR) in today's dollars
  • $20,000 ideal target monthly income in retirement (ITMIR) in today's dollars

Accounts

Summary of assumptions for the Account in this Scenario.

  • Account Name:  $100,000 Invested in VTSMX at 8.97%/year
  • $100,000 starting account balance
  • 8.97% yearly rate of return (at start)
  • Asset Type: Stocks

Properties

This scenario has no Properties.

Rules

These are the Rules included with this Scenario.

Paycheck and Personal Expenses

  • This  Rule runs for the entire  Scenario.
  • Depositing both your paycheck and pulling expenses out of the same  $100,000 Invested in VTSMX at 8.97%/year.
  • Both paycheck and personal expenses will be Inflation Adjusted.
  • Gross paycheck is $5,000 Inflation Adjusted.
  • Assuming a tax rate of 18.84% on your paycheck.
  • Net paycheck (after taxes) is $4,058 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 $4,058 Inflation Adjusted per month.

Paycheck and Personal Expenses

  • This  Rule starts on Feb 2040 and runs for the rest of the  Scenario.
  • Depositing paycheck into  $100,000 Invested in VTSMX at 8.97%/year but no personal expenses with this  Rule.
  • Personal expenses will be Inflation Adjusted.
  • Gross paycheck is $1,200 Inflation Adjusted.
  • Assuming a tax rate of 18.84% on your paycheck.
  • Net paycheck (after taxes) is $973.92 Inflation Adjusted per month.
  • This paycheck will not stop at retirement.

Significant Events

These are the  Significant Events for this Scenario.

  • Month 195  Start New Income Source
  • Month 477  Achieved Financial Independence Goal