What retirement planning software do you use?

gadgetmind

jamesd wrote: »

I use Firecalc for market variability analysis and spreadsheets for the rest.

Ditto.

I also sometimes also use a slide rule to scare younger engineers!

gadgetmind

yorkshireman2 wrote: »

For example, what happens if you don't get the expected results on the pensions, what if there is record inflation throughout the 2020s, what if we have three years of deflation, what if there's a market crash a week after you retire, what if annuity rates continue to drop?

I have all those variables at the top of my spreadsheet with pull-downs for the values that I want to model with. Inflation's in there, as is drawdown rate, investment return, state pension, cash interest, and much more.

I then have rows for all the various pots, more rows for what I'm adding to those pots, I then use drawdown rates to see what we could be pulling out of said pots are various stages, and individual taxation. I then get figures for total (in future money terms) we'll have depending on numbers at the top etc.

With one column per year, I can then see how much we could have pcm at age 55, 60, etc.

Yes, it's all fairly crude, but adding more complexity would just cloud the issue that you can't do better than crude when it comes to the future.

My current assumptions are 5% investment return (and that's absolute not real), 3.5% RPI, 15 year gilt rate of 3.5% so GAD rate at 55 of 5.1%, and cash interest of 2.5% (needs tweaking!).

If all that holds, I can retire when I want. Big if!

Perelandra

Excel, and two dice.

Got to make those investment decisions somehow!

I've still got a long way to go, and so don't feel the need to use particularly accurate models- too many variables I can't predict. I'm aiming to have sufficient funds to retire at 52, though, so that if things go against me I'll still have time to sort 'em out. That's my crude approach to scenario modelling!

bigadaj

I think the modelling has to go beyond historic data if you want to cover all scenarios, again back to that old chestnut that you can use all the figures from Barclays equity gilt study for the past century, but ten years ago you wouldn't have predicted current base rate as even a Remote possibility.

Am appreciation of sensitivity is probably just as important as a probability calculation, determining the quantum of change on outcomes from variable inputs.

My flying analogy just demonstrates that heart rules over head for most of the population; indeed whilst I can make an objective assessment based on data, if you asked me whether I felt safer driving or flying then I'd have to admit driving would be my preference.

Psychology is also such an important factor, being comfortable with your own decisions. I'm aware that a mortgage and investing that money could probably make me a positive return but I still prefer no mortgage.

TH1878

yorkshireman2 wrote: »

Which software, if any, do you use to put together a personal financial plan.

I know this stuff is huge over in America, but there seems to be a shortage of good quality financial planning software over here in the UK.

Any thoughts?

I use Voyant but have also trialled Truth

Been doing it since I set up on my own earlier this year and never looked back. Clients appreciate it more and I get a lot more satisfaction out of my job.

IFAs who base their advice around the sale of a financial product are going to die out; there will always be someone who does that more cheaply.

Edit : and it does MCA