Regular Assets Report

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This report traces the evolution through time of the household’s regular assets if it follows the program’s recommendations and the inputs entered in the program end up being correct. All amounts are in today’s dollars. Regular assets do not include home equity, retirement account assets, or reserve fund assets. The change in regular assets from one year to the next equals annual saving. Saving, in turn, equals income minus the sum of three variables—all shown in the report: retirement account contributions, spending, and taxes.

Regular assets will be zero in the last year to which you or your spouse/partner can live given your current ages and maximum ages of life. Household’s spending in that year includes funeral and bequests to the extent that these expenditures are not covered by home equity from the sale of primary and vacation homes.

The program uses equity from the sale of homes to cover funerals and bequests only in the last year to which you or your spouse/partner can live. If home equity in that last year exceeds bequests and funeral expenses in that year, excess funerals and bequests will be zero and the household will leave an estate with positive home equity. If the household’s housing equity in that last year is less than funeral and bequest expenses in that year, all of the household’s home equity will be used to cover these expenditures and no housing equity will be left as an extra bequest.