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The Lifetime Planner performs the following calculations to determine your cash flow in a given year:
Start:
- Start the year with $0 cash flow.
Add:
- Any salary
- Any other income.
- Any income from a home or asset.
- Any proceeds from the sale of a home or assets.
- Any college-related income.
- Any income from a future loan.
- Social Security benefits (usually after retirement).
- Pension benefits (usually after retirement).
- The minimum required withdrawal from tax-deferred savings (begins when savings holder has reached or surpassed age 70-1/2). The Life Event Planners use the “Term Certain” method to calculate the minimum required withdrawal.
Subtract:
- Income taxes on all taxable income.
- Social Security and Medicare taxes.
- Loan payments, including balloon payments on loans.
- Debt reduction payments.
- Living expenses.
- Property taxes and expenses associated with a home or asset.
- Any planned downpayment on a home or asset.
- Taxes on gains from sale of home or assets
- Special expenses.
- Any planned college expenses.
- Your planned savings and investments contributions.