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💡 What can I afford to spend in retirement?
Based on your SS, pension, IRA, and all income streams
📖 How to use this page
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The four summary cards — Your most important numbers: net worth at retirement, IRA balance at retirement, when (or if) money runs out, and how much better or worse off you are by downsizing vs. staying put.
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The runway bar — This colored bar shows how your retirement years break down. Green = working. Yellow = drawing cash savings. Blue = drawing IRA. Red = shortfall (running out). Minimize the red.
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Left chart — Your IRA and cash balance year by year. Watch for where the lines approach zero — that's when an account runs low.
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Right chart — Compares your net worth if you keep your home vs. sell and downsize. The gap shows the long-term financial impact of that decision.
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Alert messages — Colored boxes showing key events: when your IRA depletes, when a shortfall begins, and the financial impact of your home sale. Red = problem, green = you're on track.
💡 Quick tip: Check this page every time you change a number in Inputs. It updates instantly — it's your feedback loop for "what happens if I..." questions.
Net worth over time
Home sale impact on net worth
📖 How to use this page
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What makes this page special — Every yellow cell is editable. You can override any number for any specific year without changing your overall plan. This is how you model real life — things don't go perfectly to plan.
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Salary overrides — Taking a pay cut in 2027? Working part-time in 2028? Type the actual expected amount. The cell turns amber to show it's overridden. Clear it to go back to your assumption.
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Expense overrides — Big trip in 2029? New roof in 2030? Enter a higher expense for that specific year — the model shows exactly how it affects your cash and IRA.
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Balance overrides — The IRA Bal. and Cash Bal. columns let you enter actual balances from your real account statements. This anchors the projection to reality and recalculates everything forward.
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Highlighted rows — Green 🏠 = home sale year (big cash injection). Amber 🆘 = backstop event year. These are the major turning points in your plan.
💡 Quick tip: The most powerful use of this page: once a year, enter your actual IRA and cash balances from your statements. That keeps the projection accurate as real life unfolds.
Yellow = enter your actual numbers ■ Working  ■ Draw cash  ■ Draw IRA  ■ Reserve
📖 How to use this page
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What this page is for — This is your personal budget breakdown across 6 spending scenarios — what you spend today, what you plan in retirement, bare minimum, comfortable, luxury, and a rental scenario.
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How to fill it in — Click any yellow cell and type a monthly dollar amount. If you pay $1,200/year for car insurance, enter $100. Subtotals and totals calculate automatically.
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Sections — Each section (Housing, Food, Health, etc.) has its own subtotal. Click any section name to rename it, use ✕ to remove rows, and + to add new expense items.
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The 6 columns — "Current" = what you spend now. "Proj. Retirement" = expected retirement spending. "Necessity" = bare minimum. "Nice to Have" = comfortable. "Luxury" = the good life. "Rental" = if you were renting.
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Bottom totals — The totals table shows monthly and annual amounts, how much Social Security covers, and how much additional income you'll need from savings.
💡 Quick tip: Fill in "Current" and "Proj. Retirement" first — those two columns drive most of the calculations in the rest of the tool.
Monthly Budget Planner
Enter your actual amounts. All columns calculate automatically. Yellow = editable. Tip: click any column heading to rename that budget.
SS income covers 0% of projected retirement budget
Expense Category
Monthly amounts · click a column name above to rename it · click any cell to edit · subtotals auto-calculate
Monthly spend by scenario
📖 How to use this page
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Your current home — Enter your home's current value and how fast you expect it to grow each year (3% is typical). Add your mortgage balance, rate, and monthly payment.
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Sale year — The year you plan to sell. The tool will calculate how much equity you'll have by then — home values and your remaining mortgage balance are projected to that year.
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Your new home — Enter where you'll move: a condo, smaller home, or nothing (enter 0 if you'll keep renting). Set a purchase year if you plan to sell now and buy later — leave it blank to buy the same year you sell. While renting in between, you'll hold the sale proceeds as cash with no mortgage. Include any new mortgage, closing costs, and monthly HOA fee.
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Cash freed up — The tool automatically calculates your net cash from the sale: home value minus mortgage payoff, selling costs, and new home purchase. This cash goes directly into your retirement pool.
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Comparison chart — On the Dashboard you'll see "Stay Put vs. Sell & Downsize" — showing the long-term net worth difference between keeping your home and moving.
💡 Quick tip: Even if you're unsure about selling, enter your home details anyway. The comparison chart on the Dashboard is one of the most valuable features in this tool.
Home sale & downsize scenario
Model what happens if you sell your current home and move to a smaller home or condo. The equity difference flows into your cash position and feeds through the spending waterfall.
Apply Home Sale to my plan
When ON, the Dashboard, Net Worth, Runway and projections include selling your home and moving. When OFF, the plan keeps your current home (stay put).
Current home Equity: $0
Downsize target (new home / condo) Equity gain: $0
Base vs downsize — net worth comparison
📖 How to use the Roth Optimizer
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The strategy: fill your tax bracket each year — Look at your taxable income each retirement year, find how much room is left before the next bracket, and convert that much. Pay 22% now, avoid 32%+ on RMDs later. The optimizer calculates this automatically from your actual income each year.
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Brackets grow with inflation — The IRS adjusts tax bracket ceilings for inflation every year (typically 2–3%). A 22% bracket ceiling of $94,300 today becomes ~$127,000 in 10 years at 3% inflation — meaning more headroom to convert as time goes on. This tool applies your inflation rate to project bracket ceilings forward.
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Roth draws are tax-free — When calculating how much headroom you have, Roth draws don't count as taxable income. Only IRA draws and SS income count. This means you can often convert more than you'd think, because your Roth spending doesn't push you into a higher bracket.
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Choose when to convert — Use the "Convert during which years?" dropdown. The sweet spot is after you stop working (income drops) and before RMDs force taxable withdrawals at your RMD age (73 or 75, by birth year) — but converting a few years into RMD age can still help. Pick the period and the tool shows the schedule and the lifetime tax effect.
💡 Tip: The 22% bracket is the sweet spot for most retirees — wide enough to convert meaningful amounts, low enough that future RMD taxes at 24–32% make the conversion clearly worthwhile.
Target bracket ceiling — convert up to top of:
Bracket ceilings are inflation-adjusted forward each year using your inflation rate from Inputs. Tax rates are your retired rate from Inputs.
Apply Roth Strategy to Plan
When ON — Dashboard, Runway, Plan Summary and Year-by-Year all reflect Roth conversions and draws
Spend-down order for retirement draws
When funding the IRA portion of each year's spending, which tax-advantaged account is tapped first. Only affects years that draw from retirement accounts.
IRA + Roth balance — with vs. without conversions
Tax burden — conversion cost vs. RMD taxes
Your conversion schedule
How these numbers are estimated: Conversion and lifetime tax figures use your single effective tax rate applied to taxable income, fill to the top of your selected bracket (inflation-adjusted) net of the standard deduction, and assume the conversion tax is paid from outside cash. This is a planning model — it does not capture graduated brackets, state tax, capital-gains treatment, IRMAA Medicare surcharges, or future tax-law changes. Treat the output as a directional comparison and confirm specifics with a tax professional before converting.
Total Net Worth Today
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Enter your assets in Inputs and Home Sale to see your net worth
📖 How to use this page
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What net worth means — Everything you own minus everything you owe. If you sold everything and paid all debts, net worth is what you'd keep. This page tracks that number year by year.
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What's included automatically — Your IRA/401k, cash savings, and current home value (minus mortgage) are automatically included from what you entered in Inputs and Home Sale.
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Adding other assets — Rental property? Investment account? Boat? Click "Add Asset" and enter its current value and expected annual growth rate.
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Adding other debts — Car loan? Credit card balance? Click "Add Debt" so your net worth picture is accurate.
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The net worth chart — Projects your total net worth over time. Rising = good. Even if it declines in retirement as you draw down savings, the goal is to stay positive through your plan end date.
💡 Quick tip: Net worth is a snapshot, not a cash flow number. A high net worth doesn't guarantee you won't run short on cash year-to-year. Always check the Dashboard and Runway pages too.
Your net worth over time
Slide the bar to see your projected net worth in any year — from today on the left to the end of your plan on the right. Add other assets and debts on the Inputs page.
Net worth in —
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Today End of plan
Net worth snapshot — today
📖 How to use this page
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What "runway" means — Runway is simply how many years your retirement savings will last. A plane needs enough runway to take off — you need enough savings to last through retirement. This page answers: "Will I run out?"
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The runway chart — Shows IRA and cash balances declining over time. Where a line hits zero is when that account runs out. A solid plan keeps both lines above zero all the way to your end year.
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The end year line — The chart extends to your planning horizon. You want both balance lines to stay positive until then — ideally with something left over.
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If the line hits zero early — Go back to Inputs and try: lowering your retirement monthly budget by even $300-500/month, adding a backstop event, or delaying your retire year by one or two years. Small changes can add years of runway.
💡 Quick tip: Try this: lower your retirement budget by $500/month in Inputs, then come back here. See how many more years that buys you. Small monthly savings compound into many extra years.
IRA & cash runway
Key events
📖 How to use this page
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What you're looking at — Every year from now until your plan end date, one row per year. It's your complete retirement financial story in a single table.
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The blue highlighted row — This is your retire year — the year your salary stops. Working years are above it, retirement years below.
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Reading the columns — "Total In" = all money coming in. "Total Out" = all money going out. "Shortfall" = any gap if you come up short. "IRA End" and "Cash End" = your balances at year-end.
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Warning signs to watch — If Shortfall shows a number, there's a gap that year. If IRA End hits zero, your IRA is depleted. If Cash End drops near your reserve amount, liquid savings are nearly gone.
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Charts below — Two charts: IRA and cash trends over time, and income sources stacked by year (salary, Social Security, IRA draws).
💡 Quick tip: The "Shortfall" column is the most important one. Any year showing a number there means expenses exceed all income — that's the gap your backstop plan needs to cover.
Retirement Plan Summary
Annual financial projection · active scenario shown
About the Tax column: Taxes are planning estimates, not exact return figures. This tool applies your single effective tax rate to taxable income (about 85% of Social Security plus other income, IRA withdrawals, and RMDs), and adds the Roth conversion tax in any conversion year. It does not model graduated brackets, state taxes, capital-gains rates, IRMAA surcharges, or deductions beyond the standard deduction. Use it to compare scenarios directionally, and confirm actual numbers with a tax professional.
IRA & cash balances
Annual income sources
Monthly budget breakdown
📖 How to use this page
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Income — Enter your current annual salary. If you'll be working for years, add an annual raise percentage so your pay grows realistically, and enter any bonus or commission as a percentage of your salary (it scales automatically as your pay grows). Use "Other annual income" for simple recurring income with a single stop year; for pensions, annuities, or consulting, use the Additional Streams section below.
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Retire Year — The year your salary stops. Your expenses don't have to drop at the same time — you can keep your current spending level for a few years after retiring and switch to a lower retirement budget later.
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Social Security — Enter your estimated monthly SS benefit. Not sure? Visit SSA.gov and use their estimator. Add your spouse's amount too. The COLA rate is how much SS grows per year — 2-3% is typical.
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Cash & IRA / 401k — Enter what you have today: your IRA/401k balance, savings/checking balance, and the minimum cash cushion you always want to keep on hand (the "reserve" — the tool won't spend below this).
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Taxable Brokerage — A brokerage account outside your IRA/401k (like a Vanguard or Fidelity taxable account). Enter the balance, expected return rate, and any annual contributions. It grows alongside your IRA and counts toward net worth separately.
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Pension — If you receive a pension from a former employer, enter the monthly amount and the year it starts. Most pensions are fixed (0% COLA) — only enter a COLA rate if your pension has a cost-of-living increase built in.
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Annuity — An annuity is a contract with an insurance company that pays you a fixed monthly income. Enter the monthly amount, start year, and end year (enter 0 if it pays for life). The income shows up in the Other Inc. column in Year-by-Year and Plan Summary.
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Bonds / CDs / Treasuries — Enter your total bond or CD balance and the average yield. The tool calculates the annual interest income and adds it to your income each year. Includes I-bonds, Treasuries, municipal bonds, CDs, and bond funds.
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Rental Income — Enter your net monthly rental income (after mortgage, taxes, insurance, and maintenance). Set a stop year if you plan to sell the property. For the property value and equity, use the Home Sale & Downsize tab.
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Part-time / Consulting — Income from consulting, freelance work, board positions, or part-time jobs after you retire. Enter the annual amount, the year it starts, and the year it ends. This shows up in the Other Inc. column in the projection tables.
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Monthly Expenses — Set your budget periods: your current monthly spending and your projected retirement spending (you can add more periods for "go-go" vs "slow-go" years). These are independent of your retire year — expenses can stay high a few years after retiring. Not sure what your retirement budget should be? Just enter your current budget for now, then go to the Smart Budget tab — tell it how long you want to plan for, and it calculates the maximum you can safely afford to spend in retirement, then applies it here for you.
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Drawdown Strategy — Controls which account gets tapped first when income falls short. The default (hold reserve, draw both) works for most people. Change it only after you've entered all your numbers and reviewed the Dashboard.
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Backstop Plan — Optional: plan what happens if money gets tight. Sell the home and move to an apartment? Get a reverse mortgage? Enter the year it happens, cash injected, and new monthly budget. See exactly how it extends your runway.
💡 Quick tip: Fill in the basics first (salary, retire year, IRA, cash, expenses). Then come back and add pension, annuity, bonds, or consulting income. Each stream you add reduces how much the tool needs to pull from your IRA — extending your runway.
Assumptions
Income
Cash & investments
Additional income & investment streams — enter what applies to you, leave blank otherwise
📈 Taxable Brokerage Account
Stocks, ETFs, mutual funds outside your IRA/401k. Taxed on gains when sold.
🏛️ Pension
Enter 0 for most private/corporate pensions (fixed for life). Many government, federal, or military pensions have a COLA — often 2–3% or capped at inflation. Check your plan; a fixed pension loses about half its buying power over ~24 years at 3% inflation.
Fixed monthly income from a former employer. Taxed as ordinary income. Most pensions have no COLA — enter 0 if fixed.
📋 Annuity
Fixed income from an insurance annuity contract. Partially taxable (earnings portion). Enter 0 for end year if it pays for life.
🏦 Bonds / CDs / Treasuries
Includes I-bonds, Treasuries, municipal bonds, CDs, bond funds. Interest is taxable income each year (except muni bonds).
🏘️ Rental / Investment Property Income
Net rental income after mortgage, taxes, insurance, and maintenance. For the property itself (value/equity), use the Home Sale & Downsize tab.
💼 Part-time / Consulting Income
Consulting, freelance, board positions, part-time work after retiring. Taxed as ordinary income. Enter start/end years for when this income runs.
Other assets
Rental property, second account, vehicle, collectibles — anything else you own. Feeds your net worth across every tab.
Other debts
Car loan, credit card, personal loan — anything you owe besides your mortgage.
Inflation & taxes
Healthcare (separate line)
Healthcare rises faster than general inflation and is the cost most likely to derail a plan. Track it separately with its own inflation rate. Leave blank if it's already inside your monthly budget above. A 65-year-old couple averages roughly $300K–$350K over retirement (excl. long-term care).
Monthly expenses
Set one or more budget periods. Each has a start year, end year, and monthly amount — so you can spend more in early "go-go" years and less later. Amounts are monthly and inflate automatically.
💡 Not sure what's sustainable? Go to Smart Budget to find your maximum sustainable spending, then Apply to Plan. If you've set multiple periods, it scales them all proportionally to fit.
Drawdown strategy
Choose how retirement expenses are funded after SS income. Each strategy affects how long your money lasts and how much grows tax-deferred.
Plan horizon
Backstop Plan — what happens when IRA depletes and cash reserve is your last cushion
When your IRA runs out and cash drops to reserve level, what's your plan? Set up an emergency backstop event — a home sale, reverse mortgage, or move — that injects cash and/or resets your monthly budget.
Backstop Event
New Budget After Event
Select an event type and year to see your backstop plan summary.
📖 Understanding RMDs
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When RMDs start depends on your birth year — The IRS requires you to withdraw a minimum amount from Traditional IRAs and 401ks every year once you reach your RMD age: 73 if you were born 1951–1959, or 75 if born 1960 or later. Skipping an RMD triggers a 25% penalty on the amount not taken. This tool uses the correct age for your birth year automatically.
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RMDs are fully taxable — Every dollar is added to your ordinary income. Large RMDs can push you into a higher bracket, trigger Medicare surcharges, and increase taxation of Social Security.
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Roth IRAs have no RMDs — This is the key advantage. The Roth Optimizer tab shows how converting some IRA to Roth before your RMD age (73 or 75, depending on your birth year) reduces your future RMD burden.
💡 Tip: A $750K IRA generates roughly $28K in mandatory taxable income in your first RMD year — whether you need it or not. Plan ahead with Roth conversions.
Annual RMD amounts
IRA balance with vs. without RMDs
📖 How to use Sequence of Returns Risk
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What is sequence of returns risk? — A market crash in year 1 of retirement is far more damaging than the same crash in year 15. When you're drawing down savings, early losses force you to sell more shares at the bottom — permanently reducing your balance for the rest of retirement.
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How to read the chart — Each group of bars shows one crash scenario. The purple bar is your IRA balance the year before the crash. The colored bar is your IRA immediately after the crash drop. The green bar is your IRA at the end of your plan. The bigger the gap between purple and colored, the worse the crash damage.
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Customize the crash settings — Change the portfolio drop % to match historical crashes (2008 = 37%, dot-com = 49%). Change the crash year for each scenario to test what happens if a crash hits at different points in your retirement.
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How to reduce this risk — Keep 1–3 years of living expenses in cash before retiring. This way you never have to sell investments at the bottom — you live on cash while the market recovers. This "cash bucket" strategy is one of the most effective retirement protections available.
💡 Tip: If all three scenarios show green (IRA at plan end > $0), your retirement is well protected. If the early crash scenario depletes your IRA, add more cash reserves or reduce monthly spending by $500-$1,000.
Crash settings
Set how severe the crash is and how long recovery takes. Then customize the year each scenario hits.
Customize crash year for each scenario:
Historical reference: 2008 crisis = −37% drop · 2000 dot-com = −49% · 2020 COVID = −34%
IRA balance before and after crash — by scenario
📖 How Smart Budget works
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What can I actually spend? — Instead of entering a budget and hoping it works, Smart Budget calculates the maximum you can sustainably spend in retirement based on all your income sources and portfolio size.
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How it calculates — Adds up your guaranteed income (SS + pension + annuity + rental), then calculates a safe portfolio withdrawal rate based on how many years your money needs to last. The total is your maximum sustainable monthly spending.
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Three scenarios — Conservative uses a lower withdrawal rate to make money last longer. Moderate is the middle ground. Comfortable assumes slightly higher spending. Pick the one that matches your risk tolerance.
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Suggested budget breakdown — Once you know your monthly number, the tool suggests how to allocate it across housing, food, healthcare, travel and other categories based on typical retirement spending patterns.
💡 Tip: If your comfortable number is much higher than you planned to spend, you may be over-saving. If your conservative number is below what you need, you need to save more, work longer, or reduce planned spending.
What can I afford to spend in retirement?
Based on all your income streams and portfolio — calculated at retirement year
Where the money comes from
Suggested monthly budget allocation
Based on moderate scenario · typical retirement spending patterns
Safe withdrawal rates used
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Conservative
Lower risk
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Moderate
Balanced
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Comfortable
Higher spending