Retirement planner

This little calculator is a retirement planner designed to explore optimial withdraws from savings and IRA accounts. It uses a Linear Programming solution to maximize the minimum amount of money available to spend. As a side effect it minimizes the taxes that needs to be spent.

This is similar to the ideas of James Welch at www.i-orp.com but I wanted to explore some new ideas. ORP continues to be a much more complete tool. This version is mainly aimed at people who retire well before age 59.5.

Currently modeled

aftertax, IRA and Roth spending
IRA->Roth conversions
Federal income tax on IRA spending with 2017 tables
Simplistic capital gains, assuming an average cost basis, at a fixed 15%
Roth withdraw limitations before age 59
Early IRA withdrawals have a 10% penalty. (this is added to 'tax')
inflation
Required Minimum Distributions from IRA
Arbitrary income or expenses happening at certain years. Income can be taxed or not. This is used to model Social Security
IRA 72(t) withdrawals

Not modeled yet

Early withdrawals from Roth gains are not modeled (only contributions)
Recording when existing Roth contributions can be accessed in config file

Not modeled

Any other taxes
new contributions to IRA or Roth

Assumptions

Taxes are only for Married filing jointly at the moment
Only the standard deduction for 2 people
age 59 is assumed to be past 59.5

Installing

This program is written in Python and can be installed locally with pip install --user ..

I am new to Python packaging so hints to make this easier for people are appreciated

Usage

Copy sample.toml to a new file
Edit with your information
run fplan NEW.toml

Output

The output is a table by age with the following columns. All numbers in table are in 1000s of dollars.

save: amount in after-tax savings account
send: send from savings this year
IRA: balance of tax-deferred IRA acount
fIRA: amount to pull from IRA this year. (before 59 with penalty)
Roth: balance of tax-exempt Roth account
fRoth: amount to pull from Roth this year
IRA2R: money converted from the IRA to Roth this year
rate: US tax bracket this year
tax: tax spent this year (includes IRA 10% penlty)
spend: net amount spent this year (includes income)
extra: additional spending this year

Contact

This tools has been somewhat on the back burner for a couple years. That said, I am more than happy to help people to use it and understand the results. Send mail at Wayne wsc9tt@gmail.com or file issues on github.

Developer Information

Testing

The test directory contains test scripts to exercise the various subsystems. Run python -m pytest to launch all of the tests.

wscott/fplan