The main spreadsheet uses your estimated retirement expenses in today's dollars, not accounting for taxes since everyone's account structure, retirement date, and tax rate in retirement will be different. You can use the number generated by the spreadsheet to estimate your total need based on your estimated effective tax rate in retireme…
The main spreadsheet uses your estimated retirement expenses in today's dollars, not accounting for taxes since everyone's account structure, retirement date, and tax rate in retirement will be different. You can use the number generated by the spreadsheet to estimate your total need based on your estimated effective tax rate in retirement by simply multiplying the two together.
(Example: if I have a lot of Roth and not much pre-tax, my effective tax rate in retirement may be 0%. My Number / 100% = how much I need before taxes. If I have a lot of pre-tax and not much Roth, my effective tax rate in retirement might be 25%. My Number / 75% = how much I need before taxes).
The main spreadsheet uses your estimated retirement expenses in today's dollars, not accounting for taxes since everyone's account structure, retirement date, and tax rate in retirement will be different. You can use the number generated by the spreadsheet to estimate your total need based on your estimated effective tax rate in retirement by simply multiplying the two together.
(Example: if I have a lot of Roth and not much pre-tax, my effective tax rate in retirement may be 0%. My Number / 100% = how much I need before taxes. If I have a lot of pre-tax and not much Roth, my effective tax rate in retirement might be 25%. My Number / 75% = how much I need before taxes).