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Sample Scenario 003 – Investing $100,000 in Stocks at Fixed 8.97% per Year while Earning and Spending $5K per Month and Social Security Starting in Feb, 2040

In this “Sample Scenario”, our third, we add to the previous Scenario an additional paycheck for $1,200 per month that begins in February, 2040.

This is an example of how you might model starting to receive a check from social security on a specific date in the future with the Real Estate Financial Planner™ software.

Adding an Additional, Future Income Stream Like Social Security

To add this additional, future income stream to your model we use another Paycheck and Personal Expenses rule.

In Sample Scenario 002 and this Scenario, the Paycheck and Personal Expenses rule for the $5,000 in personal income and the $4,058.00 starts the very first month of the Scenario.

With this additional, future income stream we have a second Rule but the Rule has a Rule Start Date of 02/01/2040.

This is what forces it to start in February of 2040.

Of course, if you want to copy the Scenario to your Planner™ and modify the date to model your social security start date you can easily change this.

If you want to additionally model your spouse’s social security start date, just add another Rule for them.

We leave the Rule End Date blank to have it run through the end of the Scenario.

We have the social security check deposited to the same Account that has our stock market investments.

The Rule is set to be a social security benefit of $1,200 per month and we have checked the box to have it automatically adjust that number for inflation so it will increase each year with the Inflation Rate defined in the Scenario settings.

Since we have defined our personal expenses in the other Rule for our paycheck from our job and personal expenses, we leave personal expenses set to zero for the Rule for social security.

We do keep the tax rate at the same 18.84% for the social security income with this Rule. Although, you might want to consider if this additional income pushes you into a higher tax bracket, you might want to adjust this up to more accurately model it. We did not increase the Tax Rate for this sample Scenario.

Gross Paychecks

The following is a chart showing you the sum of all your Gross Paychecks for the entire Scenario. I hope it is obvious where you start receiving your social security check between month 200 and 300 where your Gross Paycheck jumps up a bit.

You might also notice where you hit financial independence where your primary paycheck goes away and you’re left just with your social security income.

Sample Scenario 003 - Gross Paychecks
Sample Scenario 003 – Gross Paychecks

What if we adjust back to today’s dollars and adjust for inflation? The following is the chart of Gross Paychecks adjusted for inflation.

Sample Scenario 003 - Gross Paychecks - Inflation Adjusted
Sample Scenario 003 – Gross Paychecks – Inflation Adjusted

Copy To Your Own Planner™

Is this a good starting point for some modeling you want to do on your own? If so, it is easy to copy the entire Scenario to your own Planner™ and then just modify it to more accurately match your unique situation using the link below.

Please Login to copy this Scenario to a Free Plan, Plus Plan, Copper Plan or better.

Copy  Scenario into my Real Estate Financial Planner™ Software

Sample, Unnamed Scenario with 0  Accounts, 0 Properties, 0 Rules, 0 Goals

Consider These Questions

  • What if you don’t receive social security at all? Remove the Rule.
  • What if you only receive social security for a short period of time? Add an end date to the Rule and find out.
  • What if your social security benefit is only a fraction of what you thought it might be? Reduce the amount on the Rule and see the impact.
  • What if you own a business and have some control over your salary? You could model a variety of situations where you choose to pay yourself more or less to raise or lower your likely social security benefit to see what impact that might have on your overall financial plan.

Target Income In Retirement

The Target Income In Retirement is the target income that you are trying to generate from your investments (stocks and rental properties). It does not take into account that you’re already receiving some of your income in retirement from social security.

So, you could adjust your Target Income In Retirement in the Scenario settings and reduce it by your social security check amount.

For example, in this sample Scenario you could reduce it from $5,000 per month by $1,200 to $3,800.

By doing that, it will show you achieve financial independence faster and it will have you retire from your primary job and stop receiving that paycheck earlier.

Copy the Scenario to your own Planner™ and see for yourself.

Just Stocks

This Scenario is modeling only investing in stocks. See other Scenarios that are also only investing in stocks here:

More posts: Scenario With Only Stocks

Scenarios with Fixed Rate of Return on Stocks

We are overly simplifying and—incorrectly—assuming that the return of the stock market will be fixed for the entire duration of the Scenario. See other Scenarios that also make this overly simplified and incorrect assumption:

More posts: Scenario with Fixed Stock Market Rate of Return

Income and Expenses

This Scenario models you receiving an income and having personal expenses. See other Scenarios like that:

More posts: Scenario With Income and Expenses

Social Security

This Scenario models you receiving an income and having personal expenses. See other Scenarios like that:

More posts: Scenario With Social Security

Starting With $100K

This Scenario assumes you are starting with $100,000 invested in stocks. Want to see the other Scenarios that all start with $100K? Check those out here:

More posts: Scenario Starts With $100K

Got Questions, Suggestions, Comments?

We realize that the Real Estate Financial Planner™ software is refreshingly complicated. It is not just entering in a couple numbers on a web form and it spits out a couple numbers back to you. It is powerful because it allows you incredible control over how you model your situation. With that incredible control comes complexity.

So, if you have questions, suggestions or just comments… please do post them below. Thank you and look for more Scenarios including those modeling real estate investments as well.

  • Will the software answer this question….”what is gained by capturing my equity with refi or sale to buy more income property?”

    • > Will the software answer this question….”what is gained by capturing my equity with refi or sale to buy more income property?”

      Yes, it will allow you to test a variety of possible investing strategies with you either refinancing properties and buying more income property or with you selling properties and buying more income properties. There are several different rules you can use to accomplish this to model it.

      Some of the example rules:

      1. Allow cash out refinancing of properties when determining if you have enough money to buy a new property. That rule would then see if you have enough cash and enough cash from cash out refinancing a property and if you do, then do the cash out refi and buy a new property.

      2. Sell properties when your return on equity drops below a user-defined threshold. So, you could choose to sell properties when your return on equity for that property drops below, let’s say, 10%. Then, use that money to buy new income properties to replace the ones you sold.

      Plus many more. It is free… you can try it for yourself.

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