This screen displays a high-level visual representation of the client's personal economy. Click the [Step] checkbox to automatically increment year-by-year values. Enter a specific year or age to advance to the associated values. |
As we discussed, the Personal Economic Model allows us to see your entire financial picture. What this shows is your model with the income, savings, and other information we just entered valued at the end of the first year. Notice your Lifetime Capital Potential. Does the size of this number surprise you? To see how your financial situation may play out between now and retirement, let’s move the model forward year by year to your retirement year. As you can see, the forecast shows your remaining Lifetime Capital at retirement calculated from your future defined benefits and your tanks values calculated from your savings and rate of return assumptions. Now, let’s put it back in motion and see how long your account balances in your tanks will support your retirement income. As I mentioned before, there are four tough questions we all need to answer about our retirement. Let’s look at answering them on the next screen. |
All contributions and withdrawals occur at the beginning of the year. Calculations for the Present and Revised Projections are performed against and stored in a logical worksheet format. Therefore the calculation logic is best described by defining each worksheet column. |