Retirement Dynamic Plan

Summary Graph

The Retirement Summary graph calculates projected total amount of money saved by retirement in all accounts as well as solves for estimated total savings needed at retirement to last through the entire planning horizon. By looking at this graph, you can easily see (1) how much money you would manage to save by retirement, (2) how much money you would need to save for it to last through retirement and (3) weather this yields a shortfall or surplus.



You may select Display Chart as “Annual Savings Contributions” from drop-down list above the chart and the program will show the current annual savings as well as compute annual savings needed to satisfy all the current and future expenses. The chart in this case will tell you how much needs to be saved every year to make the money last through retirement.


Savings Graph

The Retirement Savings graph shows projected balances by year accumulated in accounts of various types (401(k), IRA, etc). Balances are expressed in future dollars.


Moving the mouse over any of the bars in bar chart will show the detailed breakdown of values for the selected year in the legend section on the left.

By default the chart shows balance projections Based on Income Goal specified in the Worksheet. Income Goal is a Retirement Income before taxes sufficient to satisfy desired retirement expenses. From the dropdown list above the chart you may choose to Display Chart Based on Achievable Goal. When this option is selected, the program will calculate a maximum retirement income which can be drawn annually and still have the money last through retirement.


Cash Flow Chart

This screen shows a dynamic chart of the calculated cash flow projections from today until the end of planning horizon. Only visible in Cash Flow Mode, this chart is a high level summary of the inflows and outflows for every year in the plan.


Moving the mouse over any of the bars in the chart will show the detailed breakdown of values for the selected year in the legend section on the left. In the legend, contributions to Taxable and Tax Advantaged savings are not displayed since they are considered money movements. Savings Withdrawal indicates money that was withdrawn from any of the accounts to cover expenses.

NOTE: In the year of retirement Earned Income and Living Expenses are prorated based on the person’s month of birth.

The Net line indicates whether there was a growth or a decrease in the total net worth for the specific year.

Carry over Taxes indicate taxes that were generated by unqualified distributions or tax generating withdrawals. The software assumes that these tax liabilities, incurred in the process of generating liquidity to pay for taxes, will be paid the following year at tax time (April 15th).

Shortfall and Cumulative Shortfall indicate the amount of expenses that were not covered in the specific year. The cumulative shortfall keeps track of the total amount of uncovered expenses in the plan.

Risk/Reward Graph

This screen shows a Monte-Carlo simulation of projected savings, as well as the likelihood of reaching the capital preservation goal at the end of retirement.


Risk/Reward Graph shows a savings projection into the future. 500 random scenarios are calculated based on the standard deviation of assets in each account. The purple line represents a projected total savings assuming a fixed inflation and the rates of return for each account (similar to the graph under the Savings tab). Low, Median, and High Return lines represent respectively 25, 50 and 75 percentile outcomes of the Monte-Carlo simulation.

Vary Account Allocations tab

To see the effect of a different allocation on the overall financial plan, you may choose to apply various Custom and Model portfolios created in the Asset Allocation module to Taxable, Tax-Advantaged or all accounts. To apply an allocation, simply select if from the What-If allocation list on the right and click the Apply to Current button. You will immediately see the effect of the allocation changes on the overall financial projection.


Vary Retirement Assumptions tab

Select desired assumption to vary from the “Change Assumptions for:” drop-down list. This will display corresponding group of assumptions to vary. You may drag the button along the slider bar to increase/decrease the selected value or type in the value directly into the input field and hit enter. The program will recalculate and display results in real-time.


Note that account contribution inputs and sliders are limited by the maximum contribution for the given account allowed by the IRS. For ease of use when modifying values that could have very large maximum, the sliders use a “smart maximum” feature where the maximum value of the slider is temporarily set to the current value *When the temporary maximum is reached the “smart maximum” is reset to the next corresponding higher value.


A powerful feature of the what-if section is ability to include or exclude specific Expenses and Goals into the plan based on their assigned priorities. (NOTE: priorities are setup in the Cash Flow/Goals section of the Worksheet). By default all expenses are included in the plan, but in case of a possible projected shortfall, you may choose to only include goals and expenses with higher priority to see if those essential expenses can be met.

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