Regular Assets vs Retirement Assets

Perhaps this is a simple terminology question. I have assets (cash, stocks, and mutual funds set aside for my retirement in several taxable brokerage accounts. They assets are from Employee Stock Purchase plan and inheritance. As far as ESPlanner is concerned are these taxable assets part of my Savings or part of my Retirement assets? In other words, does ESPlanner expect a Retirement account to be some form on IRA, Roth IRA, 401k, 401a, 403b etc and everything else is a regular asset?


dan royer's picture

Yes, the money you describe when entered as "Assets and Savings" will be treated as part of the pool of Regular Assets and reflected in the Regular Assets report and used in the Saving column to smooth consumption. This money is not taxable on withdrawal of course as you note.

You could sequester some or all of this money in the Reserve Fund screen, but doing so may cause borrowing constraint if that money is needed in the near term to bring discretionary spending (consumption) up to that of long-term levels. So it's good to have a good source of Regular Assets. I would leave it in Regular Assets and see what the program does with it. It should go to $0 in your last year of life.

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