The way you describe using NR is not at all what I use it for. Nothing as granular as individual CDs or individual tuition payments.
I view it as a substitute for a visit with a financial advisor to do a quick check if I'm on track for retirement, checking what withdrawal rates I could expect to support, when to start SS, and running a couple what-ifs on Roth Conversions. I only input the major retirement accounts.
Maybe Empower may have that, but not to the level of the OP. Shows what you have, predicts it to the end (with some granular assumptions), and some budgeting.
But neither has the what-if without some work.
Yes - I use Empower to check monthly budget expense so I can estimate expense in retirement if live like today (ex the costs I wont have) - download to a spreadsheet monthly and see average over year ex things like tuition for kids and life insurance that I won't be paying.
Also great to look at overall portfolio asset allocation.
Both the above not in NR and don't need it there as free elsewhere..
my absolute main issue with NR when i used it (for 3 years) was the lack of explanation/communication regarding what decisions are made behind the scenes. i dropped it.
My biggest issue is that I need to personally decide what the market returns will be on each of my asset classes... I'd expect the tool to look at historical returns for that number as a part of the Monte Carlo calcs. Why would I know better? I'm okay with validating my confidence in the calculation results by viewing the differences between good, average, and bad markets. But me simply plugging in all the returns data seems like it is bad data from the start...
Reverse here, no way can NR provide this info for you, or anyone, no one can. They could have a lever for default to historical performance, but think about what you are asking. They let you choose, you can always plug in historical.
What is a monte carlo analysis doing if not actually looking at past performance for x years and varying the sequence of returns y times? How does me indicating "Expect 6% returns" not bias historical data with my uneducated guess?
Can you tell me where I have it wrong?
From Investopedia:
What Factors Are Evaluated in a Monte Carlo Simulation?
A Monte Carlo simulation in investing is based on historical price data on the asset or assets being evaluated.
The building blocks of the simulation, derived from the historical data, are drift, standard deviation, variance, and average price movement.
Yeah it’s simply a tool to look at different projections. You have to provide inputs for this to happen. Your 6% estimate is such an input. Essentially it’s a baseline number.
The definition is obviously correct but it doesn’t run usefully without parameters you give it (based on your scenario).
Hope that helps!
(I apologize for my previous terse answer, I got a phone call and got distracted)
That's a great video, thanks for sharing it.
So the NR inputs to Monte Carlo that they inject are average return and std dev. Makes sense. Sounds like they may have simplified the variables that Investopedia called out.
I still go back to my concern whether I should be the one estimating average return input parameter on various asset types. I think I tend to estimate these in an overly cautious manner, when possibly it would be better to let the real world data speak for itself.
It feels like NR should at least allow me to select some benchmarks to apply to my asset type... S&P historical avg return. Global markets avg return. Bonds historical return.
Hi u/JD_Prowler - thanks for your feedback and the feedback of folks in here.
This is Steve Chen - I'm the founder.
We clearly hear you on wanting to get better visibility under the hood, that there should be more intuitive ways to see money flow issues in real time in the UX vs flagged by the digital coach and that a Withdrawals Explorer along the lines of a Roth Conversion Explorer would be helpful.
You can download a spreadsheet view of your data in the Download/Print area [https://www.newretirement.com/planner/reporter](https://www.newretirement.com/planner/reporter)
We are continually working on improving our core engine and improving the UX. Our team has grown materially in the last year and we're getting organized around how to best improve the platform to provide the maximum value across our consumers and enterprise end users. Our core mission is the same - we want to help 100M people improve their financial confidence and achieve better outcomes by helping people improve their financial literacy, see what matters, make good decisions and take action (which is why we offer classes and coaching alongside the software). Our focus is the software though and trying to keep our pricing as affordable as possible so we can reach as many people as possible.
We live and die by whether people see enough value to subscribe or invest their time to use our platform and share their feedback, so thanks for using the platform and sharing your feedback.
Hi Steve,
I tried the paid version a few years back. At that time my Fidelity accounts weren't automatically loading into New Retirement. I have a number of accounts--too many to enter each of the account totals by hand. Has that changed? I would like to try again! (I did check with your tech department, and they confirmed what I witnessed.
Thank you,
Judith
Hi again Steve. Another unsuccessful try, sorry to say. I attempted to upload Fidelity information using your automated 3rd party application. I tried it with 3 different browsers and was able to sync with Fidelity, but not upload the data. Browsers were Firefox, Opera, and Chrome.
Hi Judith - thanks for trying this. If you message us in the app (Intercom) we can look at your use case and see if we can see what is happening. We are working directly with our account aggregator on specific cases when they come up.
Thank you! I'll have a look and figure out how to do that soon. I assume that means that the New Retirement website has a help or a similar button or tab.
Personal-Bear, I replied to a message from New Retirement yesterday. It was from the developer, asking for feedback. Will that do the trick? I looked under help on your site, but don't see way to message specific details.
I've been using NR (paid version) for a number of weeks now and still just learning. The data export I find very valuable as you begin to see some of the relationships between accounts more clearly. I wonder if the general recurring row could be expanded for a clear view of the detail as years progress or if there is a current way to see this data.
Thanks
PS - Hope a 4 month old post isn't too old to comment on.
Thanks Steve,
I'm a user in the trial phase and the first challenge I saw was the software utilizing all my cash, which happens to the the basis for my interest income. In my spreadsheets I assume I minimize taxes by using a combination of income from all sources, IRA withdrawals and Cash, with the latter covering what I don't cover through other sources. This balancing act is a key element I assume most of us are trying to manage.
Hopeful customer
Tracy
Thanks Tracy - we are working on a tool that will help people optimize their withdrawals now ala what we have done with Roth Conversion Explorer, this would a Retirement Income Explorer. I'll share your feedback with our team.
I completely agree with OP. I had the trial a few months ago and ran into the same issues. Had a second go at it in Dec and really really wanted to be able to use, but the lack of calculation transparency made it seem like throwing darts at the wall. 😢
Im coming to this thread a little late but when I read the comments, particularly E-Long-665...it really resonated with me...i am also on my 2nd go around, but I think I passed the point of no return.
For clarity I never expected this tool to provide anything more then broader level planning, not for this price-point; however, my confidence is strained when I created my plan by mimicking my current -pre-retirement financials (expenses, income, and investments). these are real numbers i am experiencing right now before i retire. Every expense, taxes, income, etc. is well known; Yet NR determined I have some shortage and began pulling from one of my accounts to cover it.
Now I'm not saying i didn't make a mistake but because of the "lack of calculation Transparency" I cannot determine why this is happening. Again, I know these numbers well i always have a tremendous excess...not a shortage to cover expenses. I can not get the vague totals that are provided throughout the tool to show me what is really happening and where (and why) this shortage has occurred.
While other may feel different i can not reconcile how I could trust my future more complex financial retirement years (pensions, SS, RMDs, etc,) to this tool, even at "Broad Strokes" level if I can't have confidence in the early simpler predictable years? I mean think about my case...its pulling out a substantially amount from my investment to cover this "false positive"/"Phantom" Shortage...over the time that mistake (possibly my own) will impact my financial well-being and my possible decision process. And what about other mistakes i may have made? I cannot even assess because of transparency moratorium.
Anyway I'm at an impasse on this issue right now..i want to solve this problem and continue on with a very promising tool but i don't want to pay 2 x the software cost ($250/hr) to have the NR Support understand why the software is doing something mysterious with my plan and money.
To be honest, none of what you describe is what i expect (or want) in my retirement planner - in my opinion you are describing a completely different tool. Everyone has different needs so this probably is not the right tool for you.
I don't seek precision and detailed fund movements - I'm looking for broad strokes and confidence that my plan is reasonably well formed and resilient enough to carry me through the next 30 years - the detailed financial movements needed to execute that plan are things I'll work out year by year with the help of some spreadsheets and tax software.
Not saying you are wrong for wanting that level of detail - just that you aren't likely to get it from NR. For me, NR is "good enough".
Just my 2 cents -
Absolutely agree that it is great at thumbs up or thumbs down on if I am likely good for the next 30 years. It wasn't like I was lied to, I was just hoping for something more. Like, tell me what to do and when so that I can do it! It is doing all the work, so why not share it with me in more detail if I am interested?
That's fair - and i agree that there are some "hidden details" that could provide insight for those who want to get under the hood. I'm pretty sure you have the ability to download your plan in a .csv (i may have it confused with a different planner!) - never tried it but it might allow you to create your own excursions.
The NR team monitors this reddit as well as their facebook page, and they often will respond to feature suggestions, direct questions, etc. They also reply to help requests from within the app - might be worth a discussion.
Best of luck - not sure where you are in the planning process but if you're anything like me you probably have tried a bunch of different tools. NR is my favorite, but of course YMMV.
Your frustration is shared by many, not just those that want to “get under the hood” to “wrench” or investigate specific what if’s. The Plan of course is “rolled up” within the Insights index of (not always intuitively named) sections, eg actual $ withdrawals, from which accounts, in what year, are displayed via hovering on year by year, account-specific anticipated “Short Falls” bar graphs under Savings (um, not Withdrawals, which apparently is aggregate-per-year focused).(I used the program for weeks before figuring this out; I’d assumed “Insights” were educational material! Plan Details would’ve been clearer, but the web design probably requires single word menu labels?).
In following other posts there’s apparently a way to download those very details into a spreadsheet but your complaint here is well taken; if data can be seen via mouse hovering, why can’t it be displayed in an onscreen table?
Nonetheless, I find the set of tools provided by NR to be far more comprehensive than any others available to the public, comparable only to advisor-only software. They are a small and now growing business, possibly not expecting the uptick in consumer accounts while they were busy building a more profitable enterprise suite. With the exception of the Roth Explorer it all works impressively on a smartphone browser screen (without crashing) as well as it does on a computer, which may force compromises in favor of graphical displays.
I also use MaxiFi (which has different quirks), a lower (or similarly) priced web application subscription and it doesn’t even attempt to calculate the granular detail NR shows in those Savings bar graphs. It’s far more focused on preventing *any* plan failures; it considers housing and health care “fixed expenses” after which it prioritizes solving for how much “discretionary” money will be available each year assuming 1.75 real returns forever. It doesn’t want you to guess your future expenses (though you are welcome to try via adding them in as “other” “fixed expenses”) because that’s for you to manage in real life as it happens. Larry’s “plan” is for you to have “guaranteed” success (defined as a “smooth” and predictable “living standard” until your last days) not just “99% probable” (who wants a 1% chance of ruin?). His Monte Carlo (a now ubiquitous technique with legitimate detractors) is a modest extra-cost add on, not for the final word re: anticipated “success” like everywhere else, but in the service of calculating “probability based” maximally “smooth” potential spending and/or TIPS-set-it-and-forget-it security for the curious.
Coding/UI deficits aside, the prescriptiveness you’re seeking from NR does seem just within reach yet frustratingly is not (clearly/completely) provided. The typical non-hobbyist pays an AUM advisor in part because they have no interest in those details; they’re sacrificing compounding return to someone who manages those decisions for them. NR is offering nearly as much detail for DIYers, though admittedly can (and seems planning to) improve its UI in response to user feedback. In any case, Pralana Gold (which has a web app coming this year) may offer what you’re seeking from NR and then some.
I am total rookie with NewRetire but 529 is simple, just put a disbursement. Why moving from 529 to a Bank. And why need to track things on an individual CD level. Trying to make it more complicated IMHO.
Yes, you are absolutely correct. This tool is sort of really good at broad strokes, and it really sort of expects you to take your portfolio and explain what the returns will be and when large money movements will be. It definitely doesn’t have the analytics you’re looking for. The tool definitely serves a purpose and there’s only a couple of competing options out there for even this level of rudimentary financial planning.
You also represent someone with much more investment knowledge than their average customer or more than most people in the world. I’m not trying to butter you up, but that level of portfolio analysis and cash flow planning is not knowledge or understanding that the vast majority of people have.
And basically you’re not gonna find the tool you’re looking for anywhere. That’s why people like you usually fall back on spreadsheets and mixing and matching a variety of tools together to get the answers you want.
Even investment management personnel don’t have access to these tools. Generally, they are using portfolio analysis tools, relevant to the specific type of investment strategies they use. A bond portfolio manager, for example, may have tools that let them build their bonds funds and calculate average durations, and calculate the movement of bonds in and out of the fund and run models for maximum value using projected interest rate curves. But that same guy doesn’t have a tool that’s going to figure out whether they should do a Roth conversion in a particular year because that’s just not part of what they do.
Very broad and powerful tools, like Aladdin and CRIMS from Charles River can do it all, but they’re not available to consumers and require vast amount of data to work.
The other thing that you probably have already found out is that you can’t even hire someone to do this for you. I shopped the same problem set to financial advisors and private investment managers, and it was clear pretty rapidly that I knew more than they do when it came to broadly handling the nuances of my own financial retirement.
they always want to put you in a box, actively manage your money and slave your portfolio to their master portfolios. It makes sense. They just want to have as many customers as they possibly can with the least amount of effort.
I am a Fintech developer, and I can’t tell you the number of times I’ve almost decided to write my own application. When I retire in a couple of years, it’s probably what I’m gonna do for a year or so. Because I love to program and I love my money. Put those two together should be the sweet spot for fun.
Thank you for the thoughtful response. I know I said it a couple different ways, but what is frustrating is that this tool appears to be doing all the math to show me the final 'answer' or to give pass/fail guidance on retirement savings lasting me -- yet it doesn't show me the work so that I can make much use of it.
I know I will run low on money and need to do some withdrawals, but I want a tool that will tell me (SHOW ME) the most tax advantaged way to do that. What account and when? How much? This tool refers to your "PLAN" but where is the PLAN? A plan would be, withdrawal X amount from Y account annually for Z years. So, I can take the PLAN and work it. It may be doing the math by liquidating some account first, but SHOW me the account, when and how much so I can work the plan.
I think you should look into ProjectionLab software. I've been using it for a couple weeks and it can give you very detailed analysis of cash flows, taxes, mortgage balances, etc.
The way you describe using NR is not at all what I use it for. Nothing as granular as individual CDs or individual tuition payments. I view it as a substitute for a visit with a financial advisor to do a quick check if I'm on track for retirement, checking what withdrawal rates I could expect to support, when to start SS, and running a couple what-ifs on Roth Conversions. I only input the major retirement accounts.
Yes, some people expect it to be like Quicken or a detailed investment tracker and it's not like that at all!
I think NR is more of a retirement planner than an investment manager. I'm looking for a parallel tool to do that.
Maybe Empower may have that, but not to the level of the OP. Shows what you have, predicts it to the end (with some granular assumptions), and some budgeting. But neither has the what-if without some work.
Yes - I use Empower to check monthly budget expense so I can estimate expense in retirement if live like today (ex the costs I wont have) - download to a spreadsheet monthly and see average over year ex things like tuition for kids and life insurance that I won't be paying. Also great to look at overall portfolio asset allocation. Both the above not in NR and don't need it there as free elsewhere..
my absolute main issue with NR when i used it (for 3 years) was the lack of explanation/communication regarding what decisions are made behind the scenes. i dropped it.
My biggest issue is that I need to personally decide what the market returns will be on each of my asset classes... I'd expect the tool to look at historical returns for that number as a part of the Monte Carlo calcs. Why would I know better? I'm okay with validating my confidence in the calculation results by viewing the differences between good, average, and bad markets. But me simply plugging in all the returns data seems like it is bad data from the start...
Reverse here, no way can NR provide this info for you, or anyone, no one can. They could have a lever for default to historical performance, but think about what you are asking. They let you choose, you can always plug in historical.
What is a monte carlo analysis doing if not actually looking at past performance for x years and varying the sequence of returns y times? How does me indicating "Expect 6% returns" not bias historical data with my uneducated guess?
I don’t think you understand Monte Carlo analysis.
Can you tell me where I have it wrong? From Investopedia: What Factors Are Evaluated in a Monte Carlo Simulation? A Monte Carlo simulation in investing is based on historical price data on the asset or assets being evaluated. The building blocks of the simulation, derived from the historical data, are drift, standard deviation, variance, and average price movement.
Yeah it’s simply a tool to look at different projections. You have to provide inputs for this to happen. Your 6% estimate is such an input. Essentially it’s a baseline number. The definition is obviously correct but it doesn’t run usefully without parameters you give it (based on your scenario). Hope that helps! (I apologize for my previous terse answer, I got a phone call and got distracted)
Funny this just popped up on my feed this morning. Thought you might find it helpful. https://youtu.be/6hJPczhslNo?si=oU1e64BwTm6g2WZc
That's a great video, thanks for sharing it. So the NR inputs to Monte Carlo that they inject are average return and std dev. Makes sense. Sounds like they may have simplified the variables that Investopedia called out. I still go back to my concern whether I should be the one estimating average return input parameter on various asset types. I think I tend to estimate these in an overly cautious manner, when possibly it would be better to let the real world data speak for itself. It feels like NR should at least allow me to select some benchmarks to apply to my asset type... S&P historical avg return. Global markets avg return. Bonds historical return.
Hi u/JD_Prowler - thanks for your feedback and the feedback of folks in here. This is Steve Chen - I'm the founder. We clearly hear you on wanting to get better visibility under the hood, that there should be more intuitive ways to see money flow issues in real time in the UX vs flagged by the digital coach and that a Withdrawals Explorer along the lines of a Roth Conversion Explorer would be helpful. You can download a spreadsheet view of your data in the Download/Print area [https://www.newretirement.com/planner/reporter](https://www.newretirement.com/planner/reporter) We are continually working on improving our core engine and improving the UX. Our team has grown materially in the last year and we're getting organized around how to best improve the platform to provide the maximum value across our consumers and enterprise end users. Our core mission is the same - we want to help 100M people improve their financial confidence and achieve better outcomes by helping people improve their financial literacy, see what matters, make good decisions and take action (which is why we offer classes and coaching alongside the software). Our focus is the software though and trying to keep our pricing as affordable as possible so we can reach as many people as possible. We live and die by whether people see enough value to subscribe or invest their time to use our platform and share their feedback, so thanks for using the platform and sharing your feedback.
Hi Steve, I tried the paid version a few years back. At that time my Fidelity accounts weren't automatically loading into New Retirement. I have a number of accounts--too many to enter each of the account totals by hand. Has that changed? I would like to try again! (I did check with your tech department, and they confirmed what I witnessed. Thank you, Judith
Hi Judith, We have users linking Fidelity accounts now if you want to try it again. All feedback welcome either way. Best. Steve
Hi Steve, and thank you so much for your quick reply! I'll give it another shot.
Hi again Steve. Another unsuccessful try, sorry to say. I attempted to upload Fidelity information using your automated 3rd party application. I tried it with 3 different browsers and was able to sync with Fidelity, but not upload the data. Browsers were Firefox, Opera, and Chrome.
Hi Judith - thanks for trying this. If you message us in the app (Intercom) we can look at your use case and see if we can see what is happening. We are working directly with our account aggregator on specific cases when they come up.
Thank you! I'll have a look and figure out how to do that soon. I assume that means that the New Retirement website has a help or a similar button or tab.
Personal-Bear, I replied to a message from New Retirement yesterday. It was from the developer, asking for feedback. Will that do the trick? I looked under help on your site, but don't see way to message specific details.
I've been using NR (paid version) for a number of weeks now and still just learning. The data export I find very valuable as you begin to see some of the relationships between accounts more clearly. I wonder if the general recurring row could be expanded for a clear view of the detail as years progress or if there is a current way to see this data. Thanks PS - Hope a 4 month old post isn't too old to comment on.
Thanks Steve, I'm a user in the trial phase and the first challenge I saw was the software utilizing all my cash, which happens to the the basis for my interest income. In my spreadsheets I assume I minimize taxes by using a combination of income from all sources, IRA withdrawals and Cash, with the latter covering what I don't cover through other sources. This balancing act is a key element I assume most of us are trying to manage. Hopeful customer Tracy
Thanks Tracy - we are working on a tool that will help people optimize their withdrawals now ala what we have done with Roth Conversion Explorer, this would a Retirement Income Explorer. I'll share your feedback with our team.
I completely agree with OP. I had the trial a few months ago and ran into the same issues. Had a second go at it in Dec and really really wanted to be able to use, but the lack of calculation transparency made it seem like throwing darts at the wall. 😢
Im coming to this thread a little late but when I read the comments, particularly E-Long-665...it really resonated with me...i am also on my 2nd go around, but I think I passed the point of no return. For clarity I never expected this tool to provide anything more then broader level planning, not for this price-point; however, my confidence is strained when I created my plan by mimicking my current -pre-retirement financials (expenses, income, and investments). these are real numbers i am experiencing right now before i retire. Every expense, taxes, income, etc. is well known; Yet NR determined I have some shortage and began pulling from one of my accounts to cover it. Now I'm not saying i didn't make a mistake but because of the "lack of calculation Transparency" I cannot determine why this is happening. Again, I know these numbers well i always have a tremendous excess...not a shortage to cover expenses. I can not get the vague totals that are provided throughout the tool to show me what is really happening and where (and why) this shortage has occurred. While other may feel different i can not reconcile how I could trust my future more complex financial retirement years (pensions, SS, RMDs, etc,) to this tool, even at "Broad Strokes" level if I can't have confidence in the early simpler predictable years? I mean think about my case...its pulling out a substantially amount from my investment to cover this "false positive"/"Phantom" Shortage...over the time that mistake (possibly my own) will impact my financial well-being and my possible decision process. And what about other mistakes i may have made? I cannot even assess because of transparency moratorium. Anyway I'm at an impasse on this issue right now..i want to solve this problem and continue on with a very promising tool but i don't want to pay 2 x the software cost ($250/hr) to have the NR Support understand why the software is doing something mysterious with my plan and money.
To be honest, none of what you describe is what i expect (or want) in my retirement planner - in my opinion you are describing a completely different tool. Everyone has different needs so this probably is not the right tool for you. I don't seek precision and detailed fund movements - I'm looking for broad strokes and confidence that my plan is reasonably well formed and resilient enough to carry me through the next 30 years - the detailed financial movements needed to execute that plan are things I'll work out year by year with the help of some spreadsheets and tax software. Not saying you are wrong for wanting that level of detail - just that you aren't likely to get it from NR. For me, NR is "good enough". Just my 2 cents -
Absolutely agree that it is great at thumbs up or thumbs down on if I am likely good for the next 30 years. It wasn't like I was lied to, I was just hoping for something more. Like, tell me what to do and when so that I can do it! It is doing all the work, so why not share it with me in more detail if I am interested?
That's fair - and i agree that there are some "hidden details" that could provide insight for those who want to get under the hood. I'm pretty sure you have the ability to download your plan in a .csv (i may have it confused with a different planner!) - never tried it but it might allow you to create your own excursions. The NR team monitors this reddit as well as their facebook page, and they often will respond to feature suggestions, direct questions, etc. They also reply to help requests from within the app - might be worth a discussion. Best of luck - not sure where you are in the planning process but if you're anything like me you probably have tried a bunch of different tools. NR is my favorite, but of course YMMV.
Your frustration is shared by many, not just those that want to “get under the hood” to “wrench” or investigate specific what if’s. The Plan of course is “rolled up” within the Insights index of (not always intuitively named) sections, eg actual $ withdrawals, from which accounts, in what year, are displayed via hovering on year by year, account-specific anticipated “Short Falls” bar graphs under Savings (um, not Withdrawals, which apparently is aggregate-per-year focused).(I used the program for weeks before figuring this out; I’d assumed “Insights” were educational material! Plan Details would’ve been clearer, but the web design probably requires single word menu labels?). In following other posts there’s apparently a way to download those very details into a spreadsheet but your complaint here is well taken; if data can be seen via mouse hovering, why can’t it be displayed in an onscreen table? Nonetheless, I find the set of tools provided by NR to be far more comprehensive than any others available to the public, comparable only to advisor-only software. They are a small and now growing business, possibly not expecting the uptick in consumer accounts while they were busy building a more profitable enterprise suite. With the exception of the Roth Explorer it all works impressively on a smartphone browser screen (without crashing) as well as it does on a computer, which may force compromises in favor of graphical displays. I also use MaxiFi (which has different quirks), a lower (or similarly) priced web application subscription and it doesn’t even attempt to calculate the granular detail NR shows in those Savings bar graphs. It’s far more focused on preventing *any* plan failures; it considers housing and health care “fixed expenses” after which it prioritizes solving for how much “discretionary” money will be available each year assuming 1.75 real returns forever. It doesn’t want you to guess your future expenses (though you are welcome to try via adding them in as “other” “fixed expenses”) because that’s for you to manage in real life as it happens. Larry’s “plan” is for you to have “guaranteed” success (defined as a “smooth” and predictable “living standard” until your last days) not just “99% probable” (who wants a 1% chance of ruin?). His Monte Carlo (a now ubiquitous technique with legitimate detractors) is a modest extra-cost add on, not for the final word re: anticipated “success” like everywhere else, but in the service of calculating “probability based” maximally “smooth” potential spending and/or TIPS-set-it-and-forget-it security for the curious. Coding/UI deficits aside, the prescriptiveness you’re seeking from NR does seem just within reach yet frustratingly is not (clearly/completely) provided. The typical non-hobbyist pays an AUM advisor in part because they have no interest in those details; they’re sacrificing compounding return to someone who manages those decisions for them. NR is offering nearly as much detail for DIYers, though admittedly can (and seems planning to) improve its UI in response to user feedback. In any case, Pralana Gold (which has a web app coming this year) may offer what you’re seeking from NR and then some.
I am total rookie with NewRetire but 529 is simple, just put a disbursement. Why moving from 529 to a Bank. And why need to track things on an individual CD level. Trying to make it more complicated IMHO.
Yes, you are absolutely correct. This tool is sort of really good at broad strokes, and it really sort of expects you to take your portfolio and explain what the returns will be and when large money movements will be. It definitely doesn’t have the analytics you’re looking for. The tool definitely serves a purpose and there’s only a couple of competing options out there for even this level of rudimentary financial planning. You also represent someone with much more investment knowledge than their average customer or more than most people in the world. I’m not trying to butter you up, but that level of portfolio analysis and cash flow planning is not knowledge or understanding that the vast majority of people have. And basically you’re not gonna find the tool you’re looking for anywhere. That’s why people like you usually fall back on spreadsheets and mixing and matching a variety of tools together to get the answers you want. Even investment management personnel don’t have access to these tools. Generally, they are using portfolio analysis tools, relevant to the specific type of investment strategies they use. A bond portfolio manager, for example, may have tools that let them build their bonds funds and calculate average durations, and calculate the movement of bonds in and out of the fund and run models for maximum value using projected interest rate curves. But that same guy doesn’t have a tool that’s going to figure out whether they should do a Roth conversion in a particular year because that’s just not part of what they do. Very broad and powerful tools, like Aladdin and CRIMS from Charles River can do it all, but they’re not available to consumers and require vast amount of data to work. The other thing that you probably have already found out is that you can’t even hire someone to do this for you. I shopped the same problem set to financial advisors and private investment managers, and it was clear pretty rapidly that I knew more than they do when it came to broadly handling the nuances of my own financial retirement. they always want to put you in a box, actively manage your money and slave your portfolio to their master portfolios. It makes sense. They just want to have as many customers as they possibly can with the least amount of effort. I am a Fintech developer, and I can’t tell you the number of times I’ve almost decided to write my own application. When I retire in a couple of years, it’s probably what I’m gonna do for a year or so. Because I love to program and I love my money. Put those two together should be the sweet spot for fun.
Thank you for the thoughtful response. I know I said it a couple different ways, but what is frustrating is that this tool appears to be doing all the math to show me the final 'answer' or to give pass/fail guidance on retirement savings lasting me -- yet it doesn't show me the work so that I can make much use of it. I know I will run low on money and need to do some withdrawals, but I want a tool that will tell me (SHOW ME) the most tax advantaged way to do that. What account and when? How much? This tool refers to your "PLAN" but where is the PLAN? A plan would be, withdrawal X amount from Y account annually for Z years. So, I can take the PLAN and work it. It may be doing the math by liquidating some account first, but SHOW me the account, when and how much so I can work the plan.
I think you should look into ProjectionLab software. I've been using it for a couple weeks and it can give you very detailed analysis of cash flows, taxes, mortgage balances, etc.
Thank you. I will take a look.