New and Useful: Retirement Planner Now Has Additional Withdrawals Strategies, Tax Enhancements and More…
This week we are introducing additional withdrawal strategies, better handling of capital gains on after-tax accounts, and faster, more detailed Inspector charting. Log in now to start using it or learn more below.
You can now choose from three different ways of modeling withdrawals from savings:
Based on Spending Needs: This is how it has always worked — the system draws from savings for Required Minimum Distributions (RMDs) and when there isn’t sufficient income to cover expenses.
Maximum Spending: If you have sufficient savings to cover your lifetime spending needs, then you can click one button and opt to model your maximum spending rate. You can see how much more you can spend per year starting at retirement (or any age) and still achieve your estate goal.
Fixed Percent Method: Perhaps you’ve heard of the 4% drawdown strategy? Now you can see what 3, 3.5, 4, 4.27, or any percentage drawdown does to your plan.
We will be adding more withdrawals options soon. Email us to let us know what you think and what more you would like to see!
Investment Returns in After Tax Accounts
Taxes can be a major expense in retirement. We have been quickly enhancing our tax handling for you. The latest release includes better functionality to help estimate capital gains taxes on your after tax accounts.
This is something that many users have been asking for:
Capital Gains OR Ordinary Income: You can now opt to treat your investment returns as ordinary income instead of capital gains. It’s that simple. Make the election on your account and all investment returns will be taxed as income.
Better Capital Gains Modeling: If you opt for capital gains, we’ve enhanced how we do the capital gains modeling to better reflect how trading and realized gains may occur over a lifetime. You’ll want to check that your total cost basis is up-to-date, then play with the Account Turnover Rate to see what may be most realistic for you.
Plus… Inspector Chart Updates and Easier Assumptions Switching
Have you used the “What Ifs” on the dashboard yet? That was a quick enhancement we added recently. And, this week you can also see a few other improvements to make planning easier and more meaningful:
Easier Assumptions Switching: In the Retirement Planner, if you look to the upper right in navigation, you will see “My Assumptions.” Click here and you can easily switch between different saved scenarios, optimistic and pessimistic assumptions, different methodologies for monthly expenses and your various withdrawals strategies.
Faster Inspector Charts: Inspector is a set of insightful reports that give you the most granular view of your plan. Get a detailed view of: income and expenses, savings contributions, balances, returns and withdrawals, estimated taxes, taxable income, deductions and taxable income by federal tax bracket, withdrawals comparisons and more. They now run faster and, based on your feedback, we have re-categorized a few things.
More to Come!
We are already working on the next set of updates. Let us know what you think of the recent enhancements and what you most want to see next!