Why would "Total Income" be less than "Total Spending"
Submitted by loriW on Sun, 05/29/2016 - 20:40
In the years 2022-2025 of my Details Report (Monte Carlo planning method), my Total Income is less than Total Spending. Why would this be?
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ChrisCowles
Sun, 05/29/2016 - 23:37
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Taxes and (dis-)savings are
Taxes and (dis-)savings are not reflected on those reports. Look on the Regular Assets page.
dan royer
Mon, 05/30/2016 - 09:08
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Yes, as Chris says. Income is
Yes, as Chris says. Income is not everything. You are likely dis-saving from your regular assets pool--which is not income but it is contributing to your discretionary spending.
That's why when I hear people say, "how much income do you need in retirement" I furrow my brow. You don't need any income if you have enough saving to withdraw from regular assets.
ChrisCowles
Mon, 05/30/2016 - 11:01
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" ... That's why when I hear
" ... That's why when I hear people say, "how much income do you need in retirement" I furrow my brow. You don't need any income if you have enough saving to withdraw from regular assets. ..."
I think the issue here is one of terminology, particularly with people who are unfamiliar with ESP's approach to retirement finances.