Do you calculate defined benefit pension valuations for joint lives (survivorships)?
Currently, we calculate defined benefit pension valuations for single lives only. Typically, the survivor piece is not worth all that much, because: One way you could roughly approximate the value of the survivorship pension is to create a second pension, as follows: That will give you a rough guess, at least, as to the value […]
How can I tell if my pension valuation is right?
Here’s how you can get a ballpark sense of whether the result you are getting from the defined-benefit pension calculator is correct. Let’s assume the following facts: No Cost of living adjustment (that is, no COLA), just to keep it relatively simple.A ballpark life expectancy for males is to age 83. (We are not looking […]
Why do the IRA distributions seem too low for awhile, then suddenly jump up?
This can happen if you specify that the software should use required minimum distributions (which is the default mode of calculating distributions), but you start distributions before age 70. The IRS requires that distributions start at age 70 1/2, but it does not provide any definitive method for calculating “required minimum” distributions before that age. […]
How can I represent a loan from a 401k that is being paid back?
Here is how to represent an 401(k) loan repayment. 1. Enter the 401(k) balance as the current balance (as reduced by the loan). 2. Add a footnote to indicate that there is a loan outstanding from the 401(k). 3. Enter the repayments as nondeductible contributions to the 401(k). To do this, go to the “more […]
I entered an IRA and specified regular distributions. I do not see any IRA retirement income in the year my client will retire. What happened?
Most likely, the IRA was consumed by liquidations before retirement. Click here for more information about liquidations To see if that was the case, look at Reports > More Reports > Financial Planning and Backup Reports > Liquidations to Cover Negative Cash Flow. If there are any numbers in the section labeled :IRA/401k distributed,” then […]
How can I calculate the separate property portion of an IRA?
The treatment of growth in the IRA as marital or separate property is a matter of state law, so you should always consult the law in your state. If you have IRA statements as of the date of the marriage, the separate property portion of an IRA typically is held to be the value of […]
How can I change the description or label of an expense item?
Note that this will change the label only for that party. If you want to change the label for both parties to be the same thing, you must do that for each party. This gives you the flexibility to have a labeled item that applies only to one party.
Why does the total expense number on the financial affidavit not match the Budget Report?
There are several reasons why the Budget Report and financial affidavit might not be the same. Several of, these relate to timing issues. The goal of the financial form is to reflect expenses at the current moment. But the Budget Report builds in the ability to capture future financial events. The reasons for differences between […]
Is it possible to set an assumption that all net cash flow is spent rather than saved and invested?
We understand the motivation for this — a spendthrift spouse will spend all available cash in ways that cannot be forseen — but it is not possible to do that in the software. In a way, such an option would defeat the purpose of the software, which is to show where the parties will be […]
How should I enter vehicle (car, truck) expenses in the software?
There are a number of ways to enter vehicles into the software, depending on the situation. Asset side: Personal Items. Most people will want to enter the current market value of the car, or an average value, as a Personal Item on the screen where you enter assets screen. Payment side: On the payment side, […]