The Household Balance Sheet opts for the most conservative treatment. In the case of taxes, one option, or choice, involves whether to show the tax as an adjustment to resource value or as an obligation. The Household Balance Sheet methodology favors showing such items as obligations when there is a separate decision to be made (for instance, timing the realization of a tax) and netting the adjustment against asset value when there is not an independent decision point.
Articles in this section
- How is the Spending Reductions Needed section of the ‘Can I Afford My Goals?’ report determined?
- If the balance sheet calculation uses actuarial net present value for retirement expense goals (incorporating life expectancy), doesn’t that mean half the population will live longer than the planning horizon?
- Is the Household Balance Sheet independent of current/future asset allocations?
- What is the Funding Percent on the Household Balance Sheet?
- What is the Surplus/Deficit on the Household Balance Sheet?
- How are 529 Plan evaluated in the Balance Sheet?
- Where does goalgamiPro use the different Present Value calculations?
- How are Social Security balance Sheet values calculated?
- What is the difference between Actuarial and End of Life expectancy methods?
- How is the Additional Savings Needed section of the ‘Can I Afford My Goals?’ report determined?