Ian
Guest
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 Posted:
Fri Nov 11, 2005 5:02 pm Post subject:
Money Lifetime Planner |
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Has anyone an explanation as to why Money withdraws more money in a year from
Investment Accounts than is required to cover projected expences for that
year?
To cover projected total expences in each year funds are obtained from new
income not generated from investment accounts, manadatory withdrawals from
Qualified (Defined Benefit) Investment Accounts and finally from Taxable
Investment Accounts,if required, to cover the remaining balance.
Money 2006 reports an amount each year defined as "Reinvest minimum
distribution" which is equal to a surplus amount withdrawan from Investment
Accounts. If projected expences are greater than new income plus mandatory
Qualified withdrawals then the only additional amounts withdrawan from
Taxable Accounts should be the amonut required to cover the deficit. There
should be no surplus amount for "Reinvest minimum distribution".
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Thanks, Ian
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Chris Cowles
Guest
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| Posted:
Fri Nov 11, 2005 5:02 pm Post subject:
Re: Money Lifetime Planner |
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"Ian" <Ian@discussions.microsoft.com> wrote in message
news:2C4F662D-BBB4-40AB-AE58-2C17FF8C84A6@microsoft.com...
| Quote: | Has anyone an explanation as to why Money withdraws more money in a year
from
Investment Accounts than is required to cover projected expences for that
year?
To cover projected total expences in each year funds are obtained from new
income not generated from investment accounts, manadatory withdrawals from
Qualified (Defined Benefit) Investment Accounts and finally from Taxable
Investment Accounts,if required, to cover the remaining balance.
Money 2006 reports an amount each year defined as "Reinvest minimum
distribution" which is equal to a surplus amount withdrawan from
Investment
Accounts. If projected expences are greater than new income plus mandatory
Qualified withdrawals then the only additional amounts withdrawan from
Taxable Accounts should be the amonut required to cover the deficit. There
should be no surplus amount for "Reinvest minimum distribution".
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I think MS just never invested the extra time to address logical
inaccuracies such as that. I'm baffled by penalties paid for early
withdrawals from retirement accounts to cover projected expenses, in the
same years that larger contributions are made to the same retirement
accounts. Logically, if the expense projections are accurate, I'd simply
reduce my contributions in that year.
I pay around $25 per version of Money at discount stores. As illogical as
some of these things are, at that price I don't feel I can really gripe too
much about them. I can understand what's happening and accommodate for them
in my interpretation of the information. Yes, the errors make the
projections somewhat inaccurate but the LP is, after all, a WAG.
--
Chris Cowles
Gainesville, FL |
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