Q:
I was using RetirementView with a 70 yr old client today. She will pay off her mortgage at age 77 and wants to see the reduced cost of not having a mortgage payment reflected in her retirement picture. I tried using the Cash Infusions tab and such but wasn’t sure what inputs to provide. Basically, I need to show that the Retirement Income Goal can be adjusted down in seven years as she won’t need to draw so much from IRAs etc. as she does now. How would you show that?
A:
For example if her mortgage is $2000 a month = $24,000 a year.
And she is living off of $150,000 including the mortgage…
then enter 150 – 24 for her income goal = 126
then go under Special Expenses and enter on any line “Mortgage”
starts at age 70 duration 7 years… value $24,000.
DO NOT MODEL the pre retirement period or “the past”.
Just model that part of the mortgage that is in the retirement period.