Annual Retirement Income & Annual Taxable Contributions

Question

* Is annual retirement income assumed to be net or gross?
* Does Simplifi stop adding contributions after the defined retirement age?

SRC54 · Answer

I use the Retirement Planner as a guide, and now that I am past Retirement Age but still saving, I just keep putting my retirement age later. Currently I have it set to 80 with life expectancy 90 (ha!).

I use the Advanced Settings and put my brokerage and savings in Already Taxed category, my IRA in Pre-Taxed.  Since I am really retired, I know pretty much my annual income and expenditures.  And I am no longer making contributions to the IRA

But there is a lot of guestimation.  I set investment returns at 4% but you can set this much higher if you are relatively young, say 8%.  My effective tax rate is 12%.  I use just the Federal Tax but you might have to include State Taxes too.

I would say that most people's annual retirement income is gross income.

The key is to keep saving!  And if you aren't retired, keep making the maximum contributions to retirement accounts, if you can.

Just play around with it, and take the results with a big grain of salt.