How to use DaveSave

SAVING

1. Enter what you know:
   • beginning balance $
   • current age
   • investment return %
   • investment variability % (i.e. standard deviation)
   • and so on...
2. Click the button next to the thing you want to solve for:
   • final savings balance $
   • investment return %
   • beginning balance $
   • and so on...
3. Watch the app work:
   • Calculates every year of your plan from beginning to end.
   • For each year, it generates a unique value for investment return and applies it.
   • After completing every year of your plan (one simulation run) it then repeats the process for the next simulation run.
   • It will run as many complete simulations of your plan as you tell it to run (default is 100,000 but you can set it for as many as 2 billion).
   • Once complete, you will see the median and average final balances, as well as the calculated value you asked it to solve for.

SPENDING

1. Enter what you know:
   • beginning balance $
   • current age
   • beginning retirement age
   • final retirement age (SSA.gov has a life expectancy calculator here)
   • beginning Social Security age
   • and so on...
2. Click the button next to the thing you want to solve for:
   • beginning balance $
   • beginning age
   • final age
   • optimal beginning Social Security age
   • investment return %
   • and so on...
3. Watch the app work:
   • Calculates every year of your plan from beginning to end.
   • For each year, it generates unique values for inflation and investment return, adds your pension and Social Security, subtracts your spending, applies your investment return, and calculates the ending balance for that year.
   • After completing every year of your plan (one simulation run), it then remembers if that run passed (positive balance) or failed (negative balance).
   • It will run as many complete simulations of your plan as you tell it to run (default is 100,000, but you can set it for as many as 2 billion).
   • Once complete, you will see the median and average final balances, the Probability of Success %, and the calculated value you asked it to solve for.

Features

Beginning balance

Age at beginning of retirement

Age at end of retirement

Beginning Social Security age

• Enter the age you plan on enrolling in Social Security and begin taking payments.
• Example 1: You are 62 but don’t plan on enrolling until you are 67, then enter 67 here.
• Example 2: You are 72 years old and already receiving Social Security payments, then enter 72 here.

Beginning Social Security amount

• Enter the amount...
• Example 1: You are 62 but don’t plan on enrolling until you are 67, then enter 67 here.
• Note: Login to SSA.gov to obtain your actual numbers.

Beginning Social Security Amount

• This is the amount you expect to receive from Social Security when you reach your Beginning Social Security Age. The amount is for the first year’s payment. In the calculations, subsequent year amounts will be adjusted to keep up with inflation.
• Example 1: You are 55 years old and plan to begin receiving Social Security at age 62, then enter 62 for your Beginning Social Security Amount and enter your expected SS payment for age 62 (which you can look up on the Social Security Administration's website).
• Example 2: You are 72 years old, already receiving Social Security, and this year’s amount will be $30,000. Then you would enter 72 for Beginning Social Security Age and $30,000 for Beginning Social Security Amount.

Average Investment Return (0% to +50%)