Awhile back I started a thread on how to test RPM and PRC to see if I got fairly close results between the two, to decide on strategy for Roth conversions, with the metric being portfolio size at end of life. After making a few adjustments, with a lot of help from this board, I was able to, as long as I told both programs to set inflation to 0. It was very satisfying, if somewhat tedious, and I learned a lot about both programs.
My most important metric is to make sure I don't run out of money, and so obviously I do need to set inflation back to something. What's interesting is that I get pretty similar results between the two with inflation set to 0 , but even closer when I set Pralana to General Inflation 3% but leave RPM alone. If I set RPM to Expenses 3% inflation then the taxable account depletes very early, which I suspect is incorrect.
I recognize that I may not be able to get these programs to agree, especially if they handle inflation differently somehow. Still, I'm curious as to what settings I should be using in each. Let's say I believe that general inflation will average 3% every year (let's ignore health care), and that Social Security will behave as it always has so far, and that taxes (standard deductions and tax rates) will do the same. What are the specific settings in each program that I should address?
So far I know that Pralana has its initial General Inflation Rate on the home page, a way to set SS higher or lower than that on the Income page, and I think that's it.
So far I know that RPM has a COLA rate for SS of 2.6% as default, a space for expenses inflation in Section 5, and a Tax Factor escalation rate that is set at the top of Tax Tables, but enabled in Section 8 . That's all I'm aware of.
Any suggestions?
My most important metric is to make sure I don't run out of money, and so obviously I do need to set inflation back to something. What's interesting is that I get pretty similar results between the two with inflation set to 0 , but even closer when I set Pralana to General Inflation 3% but leave RPM alone. If I set RPM to Expenses 3% inflation then the taxable account depletes very early, which I suspect is incorrect.
I recognize that I may not be able to get these programs to agree, especially if they handle inflation differently somehow. Still, I'm curious as to what settings I should be using in each. Let's say I believe that general inflation will average 3% every year (let's ignore health care), and that Social Security will behave as it always has so far, and that taxes (standard deductions and tax rates) will do the same. What are the specific settings in each program that I should address?
So far I know that Pralana has its initial General Inflation Rate on the home page, a way to set SS higher or lower than that on the Income page, and I think that's it.
So far I know that RPM has a COLA rate for SS of 2.6% as default, a space for expenses inflation in Section 5, and a Tax Factor escalation rate that is set at the top of Tax Tables, but enabled in Section 8 . That's all I'm aware of.
Any suggestions?
Statistics: Posted by DebiT — Wed Feb 28, 2024 7:29 pm — Replies 3 — Views 257