This happens when the pension and Social Security payments are not keeping up with inflation. If their growth rate is less than the ‘Annual Inflation’ setting, then in today’s dollar terms, these payments are indeed decreasing. The program defaults to showing projected cash flows in today's dollar terms, but you can turn this assumption off using the setting 'Show All Outputs/Graphs In Today's [...]
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168 ArticlesWhy does my Social Security become more taxable over time?
The federal income thresholds used to determine how much of Social Security is taxable are not indexed for inflation.The thresholds have remained fixed while other income amounts generally increase over time. As a result, a larger portion of Social Security benefits can become taxable in future years, even when the inflation-adjusted values appear similar to today’s income levels.Up to 85% of [...]
Where do I create a budget for retirement expenses?
Your annual retirement expenses and detailed budget can be entered under Cash Flow Inputs.To create a retirement budget:Click on Cash Flow Inputs in the navigation menu. Select the Expenses section.Locate the Living Expenses in Retirement input.Enter your total estimated retirement expenses directly, or use the budget tool to create a more detailed breakdown.Choose whether to enter the budget as [...]
I overwrote my annual return figure for a linked account. I now want to go back to the default setting, which uses historical annual returns by asset class. How do I do this?
You can reset the annual return back to the default. See the image [...]
I manually entered my investment accounts with the underlying holdings. Some of the holdings are funds that are invested in multiple asset classes. How do I enter these for each holding?
You can enter a mix of asset classes for each holding as seen [...]
I have an inheritance coming in the future that will not be taxed. How do I enter a 0% tax rate for this in the Additional Cash Inflows section?
You can change the tax rate for an Additional Cash Inflow to any tax rate you want. See the screenshot below. You can edit the value in the dropdown box by directly typing into [...]
I have a home that I will not sell, but I would like for it to show up in my net worth projections. Where do I add this?
Any asset that is part of your net worth but won't show be sold in the future should be entered in the Assets section under 'Other Assets'. If this asset will be sold in the future, you would also need to add the proceeds of the sale under [...]
I am still working, but my spouse is retired. I entered Living Expenses in Retirement of $75,000. These expenses are shown as starting immediately, and not when I retire. Why is that?
The Individual version of WealthTrace assumes living expenses in retirement begin with the earliest retirement date. If one spouse/partner is still working, the program will apply his or her net salary (after taxes and investment contributions) to expenses. In the Advisor version of WealthTrace, users can change this [...]