Regular Asset withdrawals

Your reports are clear about the annuity/ social security and retirement fund withdrawals, but I don't see where the annual withdrawals from regular assets is stated. In my report the (savings) from the Regular Assets report is not equal to this number. I have to calculate it manually (total expenses + taxes - non-asset income - retirement withdrawal). I have already entered retirement. Am I missing something?? Thanks, C-


dan royer's picture

If you look at the Regular Assets report you'll see the two columns on the far right keep a running total of the regular assets balance. The Regular Assets column on the far right shows the running balance as the Saving (or dissaving) in the Saving column (the number on its left) is added to the previous year or subtracted from the previous year (number above it) to create the new running total. These numbers in Regular Assets in the far right column reflect the end of the year balance converted to today's dollars. That Regular Assets running balance goes to $0 at the end of life.

Does that help?'s picture

Doesn't the Regular Assets Income column in the Total Income report give exactly the amount to be withdrawn from regular assets?

dan royer's picture

No, the regular asset income in the total income report is just the interest earned relative to inflation for the regular assets. The amount that you save or withdraw from regular assets is the total income minus the total spending, minus the taxes. One can see what comprises total spending in the total spending report. And you see what constitutes total income in the total income report.

dan royer's picture

No, that's simply showing the return on your assets in today's dollars. So of course if your regular assets are set to earn 3% nominal (see Assumptions) and inflation is set at 3% (see Assumptions) then you'll see $0 income each year on your regular assets in today's dollars (but of course that's better than negative, which means you are at least keeping up with inflation). The money going into or out of regular assets each year is in the Saving column. It's either saving or dissaving. So in Annual Recommendations you see the amount to save into regular assets (note, this amount doesn't come out of your discretionary spending) or withdraw from regular assets. That same number is also shown in the Regular Assets report.

dan royer's picture

Just to be clear: when you "save" (the saving column has a positive number) that amount is not coming out of your discretionary spending number as listed. It's an amount available to you to save and still have the discretionary spending amount. When it is a negative number, it's the amount you need to withdraw in order to obtain or sustain that discretionary spending number.

I'm sorry, but I still don't see the annual amount recommended to be withdrawn from regular assets during retirement (my current life phase). In my case, I calculate it from "total expenses + taxes - non asset income - retirement withdrawal). All four of these appear to be clear in your various reports. The total in my case is not equal to any of the numbers in the regular assets report. The amount that I calculate that needs to be withdrawn from regular assets is about 20% higher than the number under (savings).
In case my error is in where I am obtaining the other numbers, total spending is from the total spending report (right column); taxes are taken from the total taxes column in the taxes report; non-asset income is from the total Non-Asset Income column in the Non-Asset Income report; the annual withdrawal from the retirement account is the 'withdrawals' column of the retirement accounts report. I have no other unaccounted expenses or sources of income. I did the calculation for several different years and none of them match any number in the Regular Assets report.

dan royer's picture

Your calculation won't be correct because you are also not doing the conversion to today's dollars per inflation set in Assumptions. There may be other reasons that your calculation is not accurate. The main point is that you are trying to calculate on your own something that ESPlanner is calculating accurately for you.

So the Total Income Report, Total Sending report, regular asset report etc. all have taken into account inflation and they are indeed aware of the taxes for that year. The Annual Suggestion report is showing these extremely dynamic calculation--it's not as simple as you are assuming. Taxes, for example, are impacted by the regular asset income in any given year and all of this is undergoing a conversion to today's dollars per the inflation rate. So you touch a number here, and it ripples all through the economy clear into the future.

These are descriptive numbers, not estimates--so they are accurate given the data input and assumptions. I hope this helps some.

I'm not sure which version you're using and have experience only with the downloaded version. I'm guessing the reports are the same or similar to those in the web version, if that's what you have.

In my version, the regular assets tab in the Suggestions report clearly shows Savings as negative or positive. When negative, those are withdrawals from regular assets. When positive, you have excess income from other sources and are increasing regular assets, rather than withdrawing them.

dan royer's picture

In the simplest view, the Saving column is calculated by taking
Total Income - Total Spending - Taxes = Saving (or dissaving)

You don't want to count things twice. To see what constitutes total income see the total income report; to see what constitutes total spending, see the total spending report.

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