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Old 11-16-2016, 06:06 PM
 
71,961 posts, read 71,997,171 times
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using low returns are not the same as the damage done by poor sequencing . portfolio's are stress tested by poor sequencing not necessarily poor returns .

don't forget the exact same average return can have a difference over a 30 year time frame of 15 years in how long the money will last just by putting the gains and losses in different orders . the average return will be the same in all the different orders .. any calculator that asks you for a average return should not be used .
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Old 11-17-2016, 03:03 AM
 
71,961 posts, read 71,997,171 times
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while these calculators provide a ball park under laboratory conditions they do stress test around the nastiest of time frames .

we have had awful combo's of rates , market returns and inflation in some pretty horrible sequences .

we have not duplicated the worst of the worst cases since 1966 .


but on top of the worst case stress testing are two other factors that imp[rove odds .

one is life expectancy . while good planning has you going out to 90 or 95 the fact is there is only a small chance we will live that long if a single and less then a coin toss chance if we are a couple . so that increases your success rate too.

depending how much discretionary spending is in the budget we tend to spend less as we age after a brief run up in our 70's . that spending falls off a cliff until our mid 80's when healthcare costs can pick up . so a lot of what we no longer do or buy makes inflation adjusting every year not needed . coming january , next years budget for us is pretty much going to be what it has been for the last few years . healthcare costs went up but other things went down for us or stayed the same .

so the fact the calculators assume a raise yearly needed or not puts more stress on the portfolio than you may see in real life .
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Old 11-17-2016, 04:24 AM
 
Location: Ypsilanti, MI
2,461 posts, read 3,678,659 times
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Does the Fidelity Calculator work for those without a Fidelity account, or those like me who have an empty account?

My 401(k) plan from my former employer was held by Fidelity but the funds have since been moved. I tried to use Fidelity's Calculator yesterday and could not find an editing function that would allow me to enter the current sums now held in accounts outside Fidelity.

Is this User Error, or a limitation on how the tool works?
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Old 11-17-2016, 05:20 AM
 
71,961 posts, read 71,997,171 times
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you need a fidelity account . it picks up your actual outside accounts from other areas they were entered like fidelity full view

every account I have , in and out of fidelity comes up
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