Do you have a detailed set of written or video instructions on how to input and manage complex revenue streams, such as IRA Distributions, 401k growth and cash outs, annuities, rental properties, real estate sales, etc., etc.?
Please advise how I can get a copy of such a "how-to" document or video?
Thanks,
Don
Don,
You are right we should compile a better resource for that in one place.... Inside program under Help file... go under Buttons - Cash Infusions and you will get some written info there.
Note that the program "manages" a lot of these streams for you if you just enter them in the right place:
- IRA Distributions: enter IRA investments as Qualified Tax-Deferred and program will tap as needed... and handle RMDs as well as ordinary income taxation of withdrawals for you
- 401k growth: Also enter as Qualified Tax-Deferred and the Pre-retirement Return and Retirement Returns will automatically compound "growth"
- 401k cash outs: you would need to do this manually if you are referring for example of taking a big distribution and perhaps putting into real estate or an annuity. Enter a Special Expense for this big lumpsum and then if purchasing annuity income stream add the income stream to Cash Infusions based on insurance company income illustration
- Annuities: we have on occasion done web classes on annuities. If they are just an investment growing at a return but not yet "annuitized" into income, then enter as Qualified or Non-Qualified Tax-Deferred. If you are providing income from the annuity, then do not model the underlying cash value as an investment, instead just model the "income" from the annuity using Cash Infusions. Using that screen you can model, SPIAs, deferred annuities, income riders, lifetime income riders, etc.
- Rental properties: if just modeling the "rent" then use Cash Infusions and set Duration to the number of years they will be getting the rent. If there are a lot of expenses, you can enter those as special expenses or just enter the "net rent" in the Cash Infusions screen.
- Real estate sales: Easiest to model the net proceeds as a lumpsum under Cash Infusions. To do so you will need to estimate the age at which client will sell the real estate. Set Duration to 1 for any lumpsum like this.