For a period of time after I retire and Sharon continues working we have more income than our goal and expenses requires. I understand that the Other Income category uses whatever is needed to meet the goal. Are the excess funds, those over the amount required to meet the expenses/goal, retained in the program calculations anywhere?
Ron and Sharon E.
Before Retirement (which is not the question asked but wanted to clarify)... income and expenses are NOT analyzed because the retirement period has not started. However, Cash Infusions can be added into the picture and simply go into an investment bucket you specify. And Special Expenses get deducted from the Investment buckets not from Job Income.
During Retirement....
When income is greater than expenses DURING RETIREMENT period in the program.... the extra or "overage" is indeed saved. If social security and pension combined were greater... it would go into the Taxable bucket. If a Cash Infusion puts you over, it will go into the bucket you set on the last column of the Cash Infusion.
Note that the money saved will then grow at the rate of return for the bucket it was added to. So if added to the Taxable bucket it grows at the rate of return of the Taxable investments during retirement... so make sure that's not set to 0%.