Where Excess Social Security and Pension Income Goes
What happens when my Social Security or pension income is more than I need to pay for expenses?
When Social Security, pension income, or other income exceeds your expenses, WealthTrace treats the remaining amount as excess cash flow.
The excess income goes into your taxable investment accounts as a cash inflow on a pro-rata basis, based on the balances of those accounts.
This means you may see money flowing into a taxable account even after that account had previously been reduced or depleted.
You can review your Cash Flow Projections to see how excess income is being directed and how it affects your investment balances over time.