TIP$TER® version 2.0 and FIRECalc^® retirement calculator v. 3.0 have a little bit in common.  Both are free.  Both perform "exploratory simulation" of a portfolio against a historical S&P 500 data set.  But here are some key differences:

	TIP$TER® version 2.0	FIRECalc® version 3.0 (free version)
Nominal versus real returns	Uses real return data	Uses nominal return data but adjusts for inflation
Monthly versus annual returns	Explores rolling periods of monthly return data	Explores rolling periods of calendar year return data
Scaled versus non-scaled	Scaled to match your forward-looking equity return expectations	Not scaled to match your forward-looking equity return expectations
Loops, or doesn't loop the data set	Loops the data set to avoid oversampling of mid-range return data	Does not loop the data set.  FIRECalc only simulates complete intervals, equal to the targeted portfolio duration, of the data set.  Consequently, FIRECalc oversamples the mid-range return data, as illustrated below with a 30-year period.
Identifies the best or worst-ranking historical intervals for your portfolio?	TIP$TER ranks and displays the trials of the exploratory simulation in 5 percentile increments and identifies the historical interval corresponding to the ranked trial you select (see below).	No
Realistically and rationally models a variable retirement budget?	Yes	See below
Compares the distribution of outcomes of different asset allocations on a single chart?	Yes	No
Promotes the 4% Safe Withdrawal Rule	No	Yes

    You can also compare the graphical outputs.  Compare the portfolio size graphs produced by TIP$TER^® and FIRECalc^®.  TIP$TER's chart, with its 5, 50 and 95 percentile trial outcomes and the TIPS baseline portfolio comparison, is shown first.  FIRECalc's chart, which noisily displays every single trial, is illustrated next.

    Furthermore, if you click on the "Choose your own Percentile" option, TIP$TER will display a chosen percentile and display the historical interval that corresponds to the ranked trial you select.

    While both TIP$TER^® and FIRECalc^® have algorithms for modeling a variable retirement budget, only TIP$TER's algorithm bears any meaningful relationship to the retirement budget that the portfolio can reasonably be expected to subsequently support.  FIRECalc^® employs a "Percentage of Remaining Portfolio" model, but it hardly makes any sense to say that you would spend no more than, say, 4% of your remaining portfolio balance if you are 95 years old.

    Furthermore, TIP$TER^®, unlike FIRECalc^®, generates a meaningful graph showing the variable retirement budgets supported by different trials of a simulation.  And this graph should be, to a reasonable investor, even more important than a "portfolio size" chart.  After all, the chief point of financial planning is to maximize the enjoyment of your time and wealth, that is, to live smarter, not to die richer.

    Finally, TIP$TER^®, unlike FIRECalc^®, provides the Asset Allocation Risk/Reward Spectrum Chart. 

    TIP$TER's Asset Allocation Risk/Reward Spectrum Chart^TM plots the simulated distribution of average retirement budgets supported by 11 different portfolios, ranging from 0% to 100% asset allocations, on a single graph.   Each distribution of simulated average retirement budgets is compared with the projected sustainable retirement budget that could be supported by an all-TIPS portfolio.

 

    TIP$TER's Asset Allocation Risk/Reward Spectrum Chart^TM helps you evaluate the relative risks and rewards of a diversified portfolio as a function of asset allocation, and in so doing, provides a revolutionary method to inform an asset allocation decision.

    Note: FIRECalc^® is a registered trademark of William A. Sholar.  Prospercuity, LLC, claims no affiliation, association, endorsement, or sponsorship by or with this product or its owner.