Home Forums how-to Event/Business

This topic contains 6 replies, has 2 voices, and was last updated by  darrowk 11 months ago.

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  • #478

    conrod
    Participant

    It appears this is geared toward Employer 401k plans. Is there any difference between setting up your contributions here or Tax Deferred Savings?
    Thank You,
    Conrad

  • #479

    darrowk
    Participant

    Hi Conrad. The “Business” event is just an Earned Income event that we pre-loaded for convenience. An Earned Income event mirrors a paycheck stub and is useful if you need to fine-tune your work income stream, capturing all your deductions or for self-employment, for example. Otherwise, you can just rely on the simplified “Work Income” field in People/You or Spouse.

    The “Tax Deferred Saving” event is just a Transfer event that we also pre-loaded for convenience. A typical use for that might be extra retirement saving, in addition to what is withheld from a paycheck. If the To Account in a Transfer event is set to “Your Tax Deferred,” for example, it’s an equivalent mechanism to the withholding you see in the Earned Income/Business event. The money is going to the same account and will get the same tax treatment.

    Also, note you can create as many events as you want by tapping NEW. And you can rename them by long-pressing on an event in the list and picking Rename.

    • This reply was modified 11 months ago by  darrowk.
  • #481

    conrod
    Participant

    Thanks for the quick response!
    I renamed the “Event/Business” to my Company 401k and input information.
    I also set up an event for my wife’s Roth IRA and My Roth IRA. Each’s present balance is added together and then entered into the Accounts/Tax Free and I can see by setting up the Roth IRA Events and yearly contributions- they are accumulated in the Tax Free Account as should be. 🙂

    In the Reports menu (after check marking the Settings/Today’s Dollars box and running the simulation) I see a different net worth in 2063 (year I die ) than when I push the Cash Flow button beneath for same year
    But- If I Do Not have the Settings/Today’s Dollars box checked- the numbers match perfectly.
    Why is this?

    Under the Accounts/Cash- (with Settings/Today’s Dollars box UNchecked) I set the Cash to $0 Balance and 0 Return: When simulation is run it is showing a positive cash value 53,535 under the Reports/Cash Flow / Cash column heading. I am not sure why or what it is representing. Also, it appears that the 53,535 value is doubled and increased by my 3% inflation to determine to the next year’s amount 108,676. It continues to add the 53535 + Inflation until I retire. Where is the money coming from and/or what am I missing?
    Thanks,
    Conrad

  • #485

    darrowk
    Participant

    Just to clarify: you want to enter all starting balances in the Accounts section. You use the Events section to set up any annual or repeating cash flows that take place in subsequent years.

    We have just been alerted to a bug where Today’s Dollars is not staying selected for multiple calculations. It’s possible that the problem you are seeing with the Cash Flow report inconsistency is due to that same bug. We will investigate and try to fix as soon as possible. Sorry for the inconvenience.

    Your Cash account is where any income for a given year will accumulate, unless you direct it elsewhere. The Log report (last report in the Reports section) shows every single transaction for every year, so if you have an unknown amount like that 53,535 accumulating, you can scroll to the year in question in the Log report, then look in the EVENTS section in that year to see exactly where that sum is coming from. Most likely one of your defined events is producing that income.

  • #486

    conrod
    Participant

    Thanks for clarifying and again the Quick Response!
    I found that if I open emailed reports on my Ipad- it is much easier to read the Log report than on my desktop. Found that Cash is the money left over after Taxes and Events. Nice! Now just to stay within our Budget!
    Do you have a general rule for “Inflate Before” and “Inflate After”? The example given is for Social Security which makes sense. I am wondering if a 401k or Living Expenses should have both boxes checked?

    I am really Impressed and Happy with the calculator! There is nothing like it. I can see how Valuable of a tool this can be especially once I learn more.
    THANK YOU!
    Conrad

  • #487

    darrowk
    Participant

    Glad it makes sense now. The calculator is a powerful tool and can model some complicated scenarios, but we’ve worked hard to ensure the numbers are right.

    As for Inflate Before/Inflate After, you have to look at each individual situation. For starters, Inflate Before is only relevant if the event starts sometime in the future. Maybe you are scheduling a car purchase 3 years from now. You would probably check Inflate Before, because the price of the car would rise with inflation before you purchased it. Inflate After has to do with inflation once the event has begun. Living Expenses are ongoing from the start of the simulation, and we would expect them to increase with the inflate rate, so I would check Inflate After. For a 401k contribution it depends on whether you intend to increase your contributions over the years, or keep them at the initial level.

    We’re really glad you’re happy with calculator! Reviews on the Google Play Store are very valuable to us right now, if you have a minute to leave one. Either way, we appreciate the feedback Conrad!

    • This reply was modified 11 months ago by  darrowk.
  • #492

    darrowk
    Participant

    Thank you Conrad!

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