Understanding Detailed Cash Flow in Retirement Planner

The Detailed Cash Flow is available to help you understand the results of the Retirement Planner.  There are various variables included in each column that may not be listed.  

During ages that are part of your accumulation phase it will look like the following.  

The Portfolio Values are the estimated value at the beginning of that year in the average and poor markets.  

The Basic Saving or Retirement Spending column shows how much money is expected to be saved (during accumulation), or spent (during retirement).  The values shown are post tax or the amount you actually expect to save or spend.  

The Spending Goals show other expenses that you expect to experience, the values shown are post-tax.  

Other Income events shows the income from other sources for each year.  The value shown is the sum of all active income events for that year after they have been adjusted for taxes that may apply.  Note that 85% of social security income is taxed in our calculations and the Required Minimum Distribution (RMD) is applied at age 70 1/2.

Cash Flow represents the total cash flow that is expected to move into or out of investment accounts.  It is calculated as (Basic Saving or Retirement Spending) + (Other Spending Goals ) + (Other Income Events)

 

When Cash Flow is negative, taxes will be applied to the cash taken from investment accounts. The calculation for this row would result in -$17,791 that needs to be taken from investment accounts to cover the expenses in the other columns.  Taxes will be applied to the withdrawals so the tax rate is applied to create the Cash Flow necessary to cover expenses plus taxes.  

 

 

 


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