Calendar Year Entries

When I enter savings account and 401k amounts, I enter the data as of the beginning of the calendar year (for example, January 1, 2017) and then do not change those entries until January of the following year. My thinking is that ESPlanner calculates expected full year contributions and returns and shows asset amounts at the end of the calendar year in the reports. However, it seems like I should update my asset amounts a few times a year and recalculate. Doesn’t ESPlanner assume those entries are as of the beginning of the calendar year and therefore the assets reported for the end of calendar year will be incorrect? I must be missing something obvious. How do others handle entering data on assets in the middle of a calendar year?


dan royer's picture

ESPlanner assumes that the regular assets as well as the retirement assets were entered at the end of the previous year and thus, as you say, have a whole year of assumed inflation and earnings applied to them. So don't update them during the year because whatever amount you put in, the program will assume that's the amount you had at the beginning of the year and apply a year of growth to those amounts.

Obviously every year you are going to get some nominal return that is different from what you assumed--either better or worse. But as you reset the new balances at the end of the year, you make that correction in your model and go forward with the next year with a little more or a little less than your model assumed you'd have for that year.

In the new year, check your labor earnings, your account balances, and check your special expenses and receipts to make sure those all look right going forward. Also check your mortgage and years remaining.



jsalino's picture

is it necessary to delete special receipts or expenses incurred in the past?

thank you

dan royer's picture

No, you don't need to delete anything from the past.

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