For a plan where the household is retired, the ‘Can I Afford My Goals?’ report will provide a section called Spending Reductions Needed if the plan shows a funding deficit for one or more goal levels. This is the monthly amount that the household should reduce spending for each goal level from the current date forward to eliminate the spending deficit shown for each goal level in the report. The reduced monthly spending amount is an actuarial net present value amount so that the reduced amount will be represented properly on the Household Balance Sheet.
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?