ok, got it.
One other question.
Is there a way to model a loss in the market? What I would like to do is go into the Spreadsheet and change one of the cells in a one of the years to reflect a market downturn. For example, If I start with a balance of $375,000 and by year 7 the account is at $406,318 I would like to go in that cell and change it to a 20% loss that year or $325,579 and see the effect on the entire plan. However, the program does not let me make any changes to the spreadsheet.
Is there a way to make changes to the spreadsheet or is there another way to show a loss in investments in a specific year?
Thanks,
Bill K
ANSWER:
Hi Bill,
The spreadsheet is not editable and is not created with formulas. We just call it that because people understand that that means rows and colummns of "the numbers".
Yes you can model a market loss using Special Expenses. Let's use round numbers and say they have $400,000 in their retirement accounts all in the market. You want to model a 20% loss. So you click on Special Expenses. Type in description "20% Market Loss" and enter $80,000 for the value. Pick the age you want this to occur. Set duration to 1 for a one time market loss. Then leave the last column at "Any Available". This will model that one time stock market loss.
Obviously you can enter as many of these as you want to show that every 7 or 8 years there is a loss. Now note that the "recovery" of the investments will be at the average returns you have entered into the program. Sometimes the bounce back recovery can be at a greater rate than those averages.
- Support