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I understand Fidelity has the new Retirement Planning & Guidance Center to replace the RIP (Retirement Income Planner) tool it used to have. There is a free 30 day trial available for people who do not have Fidelity accounts, and I watched a series of videos detailing the information it provides. I was highly impressed with what it offers and am so tempted to sign up for the free trial to be able to use the planner, BUT with I be swamped with emails and phone calls from Fidelity attempting to attain a new customer? Anyone out there ever use the free trial that was available with the RIP planning tool? What was your experience? Anyone try the new one yet? Thanks for any feedback!
Mathjak, are you a Fidelity customer or did you do the free trial? I use vanguard and have used their planner but am always looking for other points of view (firecalc, cfiresim,etc). The preview videos were impressive but I don't want to be hassled. I guess the old RIP had a free version that was always available and the new one has a 30 day free trial. Then access is not available without an account?
we have a meeting monday with our team at fidelity . if anyone has anything they would like to see added to the planner or full view i can forward it on to them . they are pretty high up on the food chain aso they have pretty good pull .
It is my favorite planner as well. There is another thread about it and some have stated some issues with it but I like it. so much so that I opened a 5k account with them a few years back just so I could save the results and it was money well spent IMHO. the account has also done pretty well.
What is their estimate for average market returns? I put 90% stock 10% bonds, and it looks like their rate of return estimate is right around 3%. That can't be right...
And if it is, there goes my dreams of retiring early. We're saving ~30% of our income, and if we retire in 20 years, our retirement savings + social security + two pensions will only last 10 years? I think if we could view the assumptions, this would show me if I entered something in wrong, or if the assumptions are ultra-conservative.
Average returns do not work or play a part when spending down . It is all about sequence risk and the order of gains and losses.
The exact same average return can have a 15 year difference in how long the money lasts just based on order.
The 90% success rate is based on the worst out comes using that ALLOCATION ..
So as an example 1965/1966 were the worst time frame for someone to retire.
Out of all the rolling 30 year periods starting in 1926 that would be the worst time frame and the one the 4% safe withdrawal rate is based on .
The fidelity planner then takes that time frame ,takes it out of sequence and tries to come up with even something hypothetically worse.
The safe withdrawal rate is the amount you could draw under those circumstances and not have to take a cut in draw. it makes no claim as to whether money will be left after 30 years or not although 90% of the time you had more than you started with at the end of 30 years .
in fact it isn't even how steep drop is in retirement . a steep drop and a fast recovery was a non event for a 2008 retiree . but a modest drop and a longer recovery can be killer .
spending down has different rules and criteria then when accumulating money which lives and dies by average returns .
Last edited by mathjak107; 11-16-2015 at 04:29 PM..
there is another very comprehensive new tool they have . it is the income strategy evaluator . it generates a very nice 28 page report as to where and how the income should be taken from .
we met with our fidelity team yesterday and they are running an in house version which is more extensive for us as well as incorporating a few different social security options as far as when i should file .
we go back monday for the follow up after they run all our reports .
one of the perks of being private acess clients is we get to meet once a year with a very extensive high level team who can run far more scenarios and incorporate more parameters then you can with the on line stuff .
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