This tool assumes that you are a sophisticated DIY investor seeking to model out early or traditional retirement. It assumes you have two goals:
1) To ensure that you never run out of money in retirement, after spending at your desired level, inflation-adjusted for the rest of your life.
2), If you can be reasonably sure that you will not run out of money, that you’d like to maximize your estate value, transferring assets tax efficiently to your heirs.
This calculator is in beta, and is completely free. Please email any feedback to scott@biggerpocketsmoney.com. Please note that this has not been professionally edited for clarity and accuracy in all calculations yet. There may be mistakes, and this is not a substitute for professional advice.
Planning for retirement goes beyond just saving; it requires a strategic approach to spending down your assets. The BP Money Retirement Optimizer is an advanced financial tool designed to help you extend the longevity of your portfolio through tax-efficient withdrawal strategies.
Tax Efficiency Modeling: Compare “Traditional” (Taxable First), “Roth Preservation” (Blended), and “RMD Suppression” (Deferred First) strategies to see which yields the highest net estate for your heirs.
ACA Subsidy Cliff Detection: For retirees under age 65, the tool actively monitors Modified Adjusted Gross Income (MAGI) to help you preserve valuable Affordable Care Act (ACA) health insurance subsidies.
Social Security Analysis: Visualize the break-even points for claiming Social Security at age 62, 67 (Full Retirement Age), or 70.
Monte Carlo Simulation: Stress-test your plan against 5,000 random market scenarios to understand your probability of success and sequence of returns risk.
Roth Conversion Ladders: Model how filling low tax brackets (10% or 12%) with Roth conversions today can reduce your lifetime tax liability and protect against future Required Minimum Distributions (RMDs).
Enter Your Profile: Input your current age, retirement goals, and account balances (401k, Brokerage, Roth, HSA).
Select Your Strategy: Choose a withdrawal method in the sidebar to see how it impacts your “Depletion Year” and total taxes paid.
Analyze Risks: Use the “Tax Risk Analysis” tab to see how your portfolio would perform if tax rates reverted to historical highs (e.g., 1990s or 1950s levels).
Review the Data: Check the Year-by-Year table to see exactly where your cash flow is coming from and how much you are paying in Federal, State, and NIIT/IRMAA taxes.