Hi,
Thank you for the explanation. A few questions:
1. For income taxes, I entered a 20% effective rate before retirement and a 15% rate after retirement. Does the program figure all income tax, assuming those rates, on distributions from the tax-deferred investments, taxable investments, social security benefits, and pension benefits, plus the tax on the expected estimated annual return on investments? Also, I have entered cash infusions for 10 years. Does the program automatically figure the tax on the cash infusions for part-time job and sale of business?
2. In other words, if I included income taxes in my figure for Annual Retirement Income Goal, then the taxes would be taken into account twice, right?
3. To buy the professional edition, the cost would be $800 to buy it plus $800 renewal each year, right? Would that include an unlimited number of clients?
Thanks, Ed
-----Original Message-----
Ed,
To answer your questions:
1. For income taxes, I entered a 20% effective tax rate before retirement and a 15% tax rate after retirement. Does the program figure all income tax, assuming those rates, on distributions from the tax-deferred investments, taxable investments, social security benefits, and pension benefits, plus the tax on the expected estimated annual return on investments?
- Yes this is what it is doing.
Also, I have entered cash infusions for 10 years. Does the program automatically figure the tax on the cash infusions for part-time job and sale of business?
- For any Cash Infusions, the "Tax Rate to Apply" column controls the taxation of each line. This lets you enter tax free items like life insurance proceeds. It does not look at the effect tax rate on other assumptions for cash infusions.
2. In other words, if I included income taxes in my figure for Annual Retirement Income Goal, then the taxes would be taken into account twice, right?
- Yes that's correct. Enter an AFTER TAX amount as the Retirement Income Goal.
3. To buy the professional edition, the cost would be $800 to buy it plus $800 renewal each year, right? Would that include an unlimited number of clients?
- Yes on the pricing. Yes that includes unlimited number of clients.
Let us know if you have other questions.
Regards,
-Tim