You must have an investment set up with an 'Account Type' of Roth IRA. You can then add the conversion information in the 'Roth Conversions' section as you see in the screenshots below. In this example this person is converting a manually entered dollar amount by year. You can also convert from more than one account at a time. To convert from more than one account to the Roth IRA, select the [...]
Article search results for : "Account not updating"
168 ArticlesI want to create my own asset class. How do I do this?
You can create your own asset classes and assign annual returns to them in Global Settings > Asset Class Mapping. When adding custom asset classes, you will also map those asset classes to pre-defined asset classes for the purposes of running Monte Carlo simulations. This is because we will not have standard deviation and correlation data for the custom asset classes. After entering the asset [...]
I created an additional cash inflow that gives me income for five years. It starts three years from now. Where do the cash inflows go, and what rate of return do they generate?
Additional Cash Inflows grow at the rate you specify before you receive them. In the screenshot below, this income for a part-time job grows at the inflation rate until the cash inflow begins. When the income starts, it goes into investment accounts that have an 'Account Type' of 'Taxable' pro rata based on their estimated balances at the time. Once added to those accounts, the money will generate [...]
I want a future cash inflow to go into a single investment account. If I enter it in the Additional Cash Inflows section, the inflow will be spread out among all of my taxable investments. How can I make sure it goes to one account?
You can achieve this by using an Annual Contribution instead. In the example below, this one-time cash inflow goes only into this one account when the person is 60 years old. One caveat to this: If one spouse is retired and the other spouse is still working, do not give this contribution to the working spouse. The program will assume the contribution comes out of salary income and will deduct it [...]
Where do I view and edit Monte Carlo assumptions such as volatility and the distribution used
Select your username at the top right and then go to Account. You will then be able to navigate to the Monte Carlo Assumptions section. You can change the distribution used (Normal vs. Laplace). The Laplace distribution means extreme events are more likely than the Normal distribution implies. You can also view and edit the standard deviations for asset classes and the correlations among asset [...]
Where do I enter a mortgage expense or Other Loans?
A mortgage or other loan should be entered in both the Liabilities and Expenses sections. The liability tracks the outstanding loan balance (affects net worth), while the expense accounts for the payments made from your plan.Add the Mortgage as a LiabilityClick on Cash Flow Inputs on the navigation menu. Open the Liabilities section.Add a new liability.Enter the loan balance, interest rate, [...]
Should I enter my Social Security estimate in today’s dollars or future dollars?
When entering Social Security income in WealthTrace, enter your estimated benefit in today's dollars.This is the amount currently shown on your Social Security benefit estimate.Why Social Security Is Entered in Today's DollarsThe Social Security Administration generally presents estimated future retirement benefits in today's dollars.That means the estimate reflects the purchasing power of the [...]
How do I change the order in which funds are withdrawn from my investment accounts?
If the program needs to use investment income and/or principal it will use money from the Taxable & Tax-Advantaged accounts first, then Non-Qualified accounts, then Qualified Tax-Deferred accounts last. However, within those sections you can control the order of withdrawal by clicking on the re-order icon and then dragging and dropping rows as you see in the screenshot [...]
I want to set a date when the money from an investment account can be used. I want it to be "locked out" for a certain number of years.
You can "lock out" an investment account from being used until the owner of the account reaches a certain age. You can see this setting in the screenshot below. One important note: If it's a taxable account, only the principal is locked out from being used. Interest and dividends can still be used during the lock out [...]
I have an expense in the Goals & Additional Expenses section that I want funded by a specific investment account. How can I do this?
You can select one investment account to fund a goal in the Goals & Additional Expenses section as seen below. If that account runs out of money before the expense is fully funded, the program will use other investment accounts to fund [...]