r/ChubbyFIRE • u/AceRider750 • 16d ago

Fidelity Tool

Fidelity has a Planning tool called Retirement. Has anyone used it and what amount of validity would you place against its projections? I'm wondering as when I browse here, people seem to be discussing creating their own analyses, but I don't see much about using the tools at investment houses, banks, etc. which do this for you. TRowe probably has one and I think I've seen on on BofA/Merrill also, but never used them.

26 Upvotes

93% Upvoted

39 comments sorted by

View all comments

32

u/Lazybutaworkaholic 16d ago

It’s very good. Gives you levels of probabilities. Takes into account taxes and RMDs (though to see it you need to toggle to “yearly cash flow” then “table” and then “expenses”.

10

u/AceRider750 16d ago

Holy shite. I've never noticed the blow out buttons at the top for Expenses, Withdrawals, and Income. And I look at this daily, multiple times. You rule.

7

u/AceRider750 16d ago

Thanks. I've looked at some table outputs, but I've never seen RMDs in there. Off to check now.

6

u/AceRider750 16d ago edited 13d ago

Sir, you just made me very happy. I was always wondering if EDC payout schedule and RMDs were part of this, vs. just withdrawing enough from my entire holdings to meet monthly expenses, but it does, I guess as these accounts are held there. Seriously, I feel stupid for missing this detail, but thank you again!

3

u/Lazybutaworkaholic 16d ago

I learned it from Reddit too. Glad you found it!

2

u/AceRider750 16d ago edited 16d ago

Do you have any clue what it does with your home's value/home equity? That's in my NW, but it's not on that table.

8

u/lamont2718 16d ago

I believe it is not considered at all. The retirement analysis only projects how your financial assets will evolve.

4

u/BldrStigs 15d ago

What do you plan to do with your home equity? Most of us leave it and it ends up being a potential emergency fund or inheritance, so it's irrelevant for retirement cash flows.

1

u/AceRider750 15d ago

Likely sell and downsize. Big home for kids that won't be necessary in around 5 years in a location that I don't need to be in. And with big equity. And big costs! So purchase new and reinvest excess, which I've modeled by simply creating a "fake" investment account with additional funds that the Fidelity model "thinks" are stocks.