I have found that if I set the borrowing constraint to $50,000, that ESPlanner is unable to provide a Lifetime Smooth Consumption Amount. Instead, it provides four very different Smooth Consumption Amounts for 4 distinct periods (e.g., 2016-2021, 2022-2025, and 2016-2027, 2028 and later).
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I sold my primary home in 2015, and am living in my vacation home full time for the next 3-5 years.
I plan to buy a new Primary Home in 2021.
Here’s how I modeled this in ESPlanner:
The ESPlanner manual says on page 5 that you can customize the software by using the HELP drop down menu, choosing Customize, and entering global program settings. When I go to Help, there is no option to choose Customize.
I have a Cash Balance Plan defined benefit pension. It's defined contribution by the employer while employed, then the balance is available to me as a defined benefit at retirement. The cash balance can be used to purchase an annuity or taken as a lump sum and rolled over to an IRA.
I am adding a sunroom to my home this year. Is that a special withdrawal or a special expenditure or both? The special expenditure to detail the expense and the special withdrawal to pay for it?
What I have concluded is that the Basic version (at least) does not calculate life insurance correctly in situations in which credit constraints make it so that the standard of living cannot be fully smoothed over the lifetime (either in the actual results or in a survivor scenario).
ESPanner's "Guide" for the "Estate" tab says the following:
I understand that the recommended life insurance is to allow the survivor to maintain the same living standard if a spouse dies before the end-of-life date set in the program.
We have been using ESPlanner for years trusting that it was accounting for the WEP calculation in our benefits. Our state pensions from non-covered employment are entered as "not covered" and our past covered earnings are accurate.
Can't seem to find explanation in manual or searching on-line. Can you explain please?
I have entered gift to children as a single payment at some date. What does "not tax related imply"?
Now that I'm looking closer, I notice that the Social Security dollar amount declines over time. It appears to be doing it at compounded rate of -3.03%. Inflation is set at 3.1% in my ESP. I'm assuming this is because ESP expresses future amounts in real dollars.
I currently am fortunate enough to not require the full smooth withdrawal that ESP recommends. The smooth withdrawal model, however, generates a larger tax liability than I currently incur in reality.
If I update asset values midyear does the program consider it a first of year value for further calculations or is it prorated?
I have a defined benefit pension in the form of a cash balance plan. At termination, a lump sum is available to me that I can take as an annuity, or roll it over into a tax-deferred account. (I can take it as a lump sum and not roll it over if I wanted to take a bath on taxes.)
My accountant informed me that the file and suspend game has been ended by congress, effective April 2016. It seems I bought a calculator from Esplanner to help me figure out the best way to maximize SS payouts. I wonder if there is an updated version.
How can non-income-producing vacant land, which is held for investment, be handled in ESPlanner? If I include it as 'Real Estate', I get an incorrect capital gain upon sale since the land is not depreciable and there are no improvements.
It appears that ESP's Social Security capabilities do not model the case of someone who becomes a disability annuitant prior to retirement age.
My understanding is that ESP calculates and adds life insurance when needed. I have seen discussions herein where it is stated that the premiums are added as expenses. Are the benefits also calculated in case of survivor reports?