This is a retirement planner application designed to explore optimal withdrawals from retirement accounts while accounting for other income, social security and federal taxes. It uses a Linear Programming solution to maximize the amount of money available for yearly spending assuming spending goes up with inflation.
This project started with Wayne Scott's https://github.com/wscott/fplan though at this point the model is compeletly different while making very similar calculations.
This is similar to the ideas of James Welch at www.i-orp.com and as Wayne wanted to explore some new ideas so have I. I have looked to both projects for insperation.
ORP continues to be a much more complete tool.
- Joint retirement (retirement accounts and social security for a couple)
- aftertax, IRA and Roth account withdrawals for spending
- aftertax, IRA and Roth account deposits
- Federal income and capital gains tax with 2017 tables
- Assumes an average cost basis that shrinks over time (looking to improve this)
- (not correct) Roth withdraw limitations before age 59
- Early IRA withdrawals have a 10% penalty
- inflation
- Required Minimum Distributions from IRA
- Arbitrary income or expenses happening at certain years. Income can be taxed or not.
- Social Security assuming the maximum percentage is taxed (85%)
- Social Security sposal benefit
- IRA->Roth conversions
- IRA 72(t) withdrawals
- Early withdrawals from Roth gains are not modeled (only contributions)
- Recording when existing Roth contributions can be accessed in config file
- State taxes
- Taxes are only for Married filing jointly at the moment
- Standard deductions and exemptions
- Assumed to be past 59.5 only by age 60
This program is written in Python3 and assumes the packages SciPy and toml are installed.
run pip install --user toml scipy numpy to install these libraries
on most machines.
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Copy
ARetirementPlannerJointExample.tomlto a new file -
Edit with your information
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run
python3 ./ARetirementPlanner.py NEW.toml -
run
python3 ./ARetirementPlanner.py -hfor help
PS C:\home\fplan> python .\ARetirementPlanner.py -h usage: ARetirementPlanner.py [-h] [-v] [-va] [-vt] [-vtb] [-vw] [-vm] [-mall] [-csv] conffile positional arguments: conffile
optional arguments: -h, --help show this help message and exit -v, --verbose Extra output from solver -va, --verboseaccounttrans Output detailed account transactions from solver -vt, --verbosetax Output detailed tax info from solver -vtb, --verbosetaxbrackets Output detailed tax bracket info from solver -vw, --verbosewga Extra wga output from solver -vm, --verbosemodel Output the binding constraints of the LP model -mall, --verbosemodelall Output the entire LP model - not just the binding constraints -csv, --csv Additionally write the output from to a csv file
The standard output is a table by age with the following columns. In cases where there are two different acount owners the data is combined in this table but split out in the optional account transaction summary table. All numbers in table are in 1000s of dollars except those for the tax brackets in optional output. Additional details are available with the appropriate application switches.
- fIRA: amount to withdrawal from IRA(s) this year
- tIRA: amount to deposit to IRA(s) this year
- RMDref: Required Minimum Distribution(s) (given only as a reference)
- fRoth: amount to withdrawal from Roth(s) this year
- tRoth: amount to deposit to Roth(s) this year
- fAftaTx: amount to withdrawal from After tax account(s) this year
- tAftaTx: amount to deposit to After tax account(s) this year
- o_inc: Other income as defined in the configuration file
- SS: Social Security income
- Expense: Short term expenses as defined in the configuration file
- TFedTax: Total Federal Tax including income tax, early withdrawal penalties, capital gains tax
- Spndble: The maximum spendable amount after taxes
This tool is being actively developed and eventually will, I hope, have a much more user-friendly inteface. At the moment it is mostly a prototyping tool.