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Part II of Lifetime Planner Post RRS feed

  • Question

  • In order to force payments form certain accounts in retirement I did try using Bills to seta forward payment data and told it to automatically put it into the register but this does not seem to appear in the Lifetime Plan?

    Are the settings for future transactions within the  Billing and Savings Centre used by the Lifetime Planner?

    Within the savings centre there does not seem to be the option for a pension account? There is a pension option under Planning but this seems to simply be an old link to the internet?

    Many thanks for your help

    Ian

    Saturday, June 10, 2017 12:40 PM

All replies

  • Ian,

    I am totally unqualified to answer your questions given that 1.) I am in the US and 2.) I have never used the Lifetime Planner in MSMoney.  Be that as it may, I did poke around in the US Money Deluxe Sunset Help screens and found this:

    When savings withdrawals are necessary, the Lifetime Planner figures out how much money you'll need to withdraw to cover the cash shortfall as well as the capital gains taxes from selling an investment. The Lifetime Planner withdraws money from taxable investments first. Once that money is depleted, it withdraws from stock options. If still more money is needed, withdrawals come from your tax-free retirement accounts(An account, usually tax-deferred, designed to provide savings for retirement. Examples include 401(k) and IRA accounts.) . This withdrawal technique is designed to minimize taxes and maximize your investment growth.

    which suggests that Money does, at least for US Sunset, consider taxes when projecting withdrawals.  Maybe UK Money has a similar feature.

    A reference that you may find useful is:

    http://moneymvps.org/faq/planning.aspx

    which has some brief articles on using the Lifetime Planner.

    I do have a need for a lifetime planner and have used a program, "MoneyGuidePro", that is furnished by my financial advisor.   It is designed specifically as a long-term financial planning tool.  I can tell you that despite good in-person support and a decent user interface, using this necessarily complex program has a significant learning curve.  Moreover, I had to do a lot of cross-checking and reviewing of cash flow spreadsheets to convince myself that my inputs were being accurately reflected in the program's projections.  I expect that Money's Lifetime Planner requires a similar level of work if it is to give useful results.  Given the inherent complexity of the analysis, I think that you aren't getting responses to your questions because very few people on this forum have used the Lifetime Planner.

    Maybe one of our UK experts will be able to be more helpful.


    Bill Becker

    Monday, June 12, 2017 3:51 AM
  • Hi Bill

    Many thanks for you reply

    MoneyGuidePro does indeed look like the type of tool I need - love the Monte Carlo Simulations - but I suspect s very much orientated towards the US tax/ savings environment.

    Not sure why MS Money would draw form taxable accounts first - I would take max cash free draw down form pensions and then top up with money I gha dto pay tax on.

    Also in the UK we have ISA which are CGT free so not sure how Money copes with Income vs. CGT tax

    Ian

    Monday, June 12, 2017 8:19 AM