If the setting 'Rebalance Investments Annually' is set to Yes, the balances of accounts in each investment section will be rebalanced back to their share that existed at the beginning of the first year. For example, let's say you have two investment accounts in the Qualified Tax-Deferred section. The first has a starting balance of $500,000 and the second has a starting balance of $400,000. The [...]
Article search results for : "Account not updating"
168 ArticlesHow are capital gains calculated? Where do I change capital gains assumptions such as cost basis and the percent of the return due to capital gains?
How are capital gains calculated? Where do I change capital gains assumptions such as cost basis and the percent of the return due to capital gains?WealthTrace uses the account cost basis and the First In, First Out (FIFO) method to estimate capital gains taxes when you withdraw from a taxable investment account.How FIFO worksFIFO (First In, First Out) means the program assumes the first shares [...]
Can I withdraw from multiple investment accounts at the same time?
WealthTrace uses investment accounts in the established withdrawal order to cover expenses. It does not automatically blend withdrawals across multiple investment accounts for a single expense.How to Model Blended WithdrawalsIf you want to model withdrawals from multiple accounts in the same year, create separate and assign each expense to a different investment account as the .For example, if [...]
I have a home sale in the Additional Cash Inflows section. How is this invested when the sale takes place?
Income listed under Additional Cash Inflows, if not needed for , will go into investment accounts with an Account Type of "Taxable" on a pro-rata basis as the default behavior. You can set which investment account the cash inflow goes into in the [...]
I have an account with a small balance, but large contributions. When I look at projections for each investment, I don't see the balance growing by nearly enough. Where are the contributions?
Balances for accounts might not look intuitive if you have the setting 'Rebalance Investments Annually' set to Yes. You can see this setting below. If this is set to Yes, the program rebalances investment accounts each year to the percentages the accounts were at the beginning of the year. In this example, the contribution does occur, but then the account is rebalanced back to its smaller portion [...]
Why does my Monte Carlo simulation show a 0% success probability when I still have money in my retirement accounts?
WealthTrace can show a 0% Monte Carlo success probability when your taxable funds run out before you can access your qualified, tax-deferred retirement accounts.For example, if you retire before age 59½ and your taxable accounts are depleted, WealthTrace considers your plan unsuccessful even if you have significant funds remaining in your IRA or 401(k).A 0% success probability does not mean you [...]
My asset allocation shows a large amount of cash. This is not accurate. How can I fix it?
With linked accounts, financial institutions may not always send us accurate asset class information. In particular, certain assets will sometimes incorrectly be listed as cash. Check your investments as seen in the screenshot below to make sure that the asset allocation looks correct. You can override incorrect allocations by going to 'Account Holdings' for that [...]
How do I view required minimum distributions (RMDs) that I do not use for expenses?
You can view the excess RMDs (over and above what's used for spending) by looking at the amount transferred to taxable accounts as seen in the screenshot below. RMDs that are not spent are only transferred to accounts labeled as 'taxable,' and are distributed pro rata to these accounts based on their balances at the [...]
Where do I tell the program that I own tax-free-interest municipal bonds?
You can add an account that has tax-free interest bonds in it as seen in the first screenshot below. If it's a linked account and the 'Account Type' did not come in correctly, you can edit it as you see in the last screenshot [...]
If I have Required Minimum Distributions (RMDs) that are not spent, where do they go?
RMDs that are not spent are distributed to accounts with an 'Account Type' of "Taxable". The distributions go into these accounts pro-rata based on their balances at that [...]