RRON Initial Assumptions

This is the initial assumptions data entry screen for values used to generate the RRON hypothetical projection.

Most data elements are self explanatory. However, the following are additional features or nuances that are worth describing:

Clicking the word [Life Expectancy] or [Inflation] will display a pop-up calculator to help you determine an appropriate value for each.

The [v] button located to the right of data entry fields or labels will display an associated worksheet used to itemize the components that make up that field. Itemizing income and savings data is not required.

Current Income = This value is used to set the desired gross income level at retirement. You can lower this amount to project a more conservative lifestyle.

Accumulated = Beginning Accumulated Savings and Investment Asset Balances. Taxation, Risk and Accessibility options affect calculated taxes (if tax rate > 0) and asset placement in PEM visualizations.

Annual Savings = The amount they are saving for retirement each year. the "[x] Inflate" checkbox indicates that they plan to increase their annual savings amount at a rate equal to inflation.

There are two Growth Rate Assumptions. The Accumulation Growth Rate is applied to assets during the accumulation (working) years. The Distribution Growth Rate is applied during the distribution period (retirement).

Tax Rate = The effective tax rate used to estimate potential tax liability on taxable income, growth and withdrawals.

Defined Benefits may be used to include any expected income stream into the projection. Examples include: pensions, Social Security benefits, structured income streams from the sale of a business or property, annuitizations, etc.

Desired Legacy = The desired asset balance remaining at the end of the projection period (which could be left to heirs, charities, or other specified interests).

COLA = Indicates that retirement lifestyle should be increased to keep up with inflation - thus maintaining a level expected standard of living.

These assumptions are shared across the entire presentation system so data entered here will be presented as the default value in follow-on presentation screens.

SG Head Start: Clicking this button will use the assumptions entered in RRON as the basis for a Spending Game present position scenario. Be aware that by clicking this button, you will immediately navigate away from RRON and be 'teleported' into the newly created present position scenario in Spending Game - so you probably don't want to click it right away.

Using some simplifying assumptions, let's take a hypothetical look at what result your current efforts might produce for your future.

No math presented on this screen.