The Lifetime Income Projections chart illustrates how your income covers your expenses in your Plan.

Planner Operations

When you enter your details into the Planner, you describe your income and expenses. The plan doesn’t match income or withdrawals to specific expenses. The Planner performs calculations around your income and expenses, and calculates your taxes based upon these calculations. The Planner will aggregate the following expense categories as a lump sum, and then fund the expenses.

  • Recurring Expenses

  • Home and Real Estate Expenses

  • Healthcare Expenses

  • Debts

  • Taxes

What you see on the Lifetime Income Chart

Income Streams

Work, Social Security, Annuity, Pension, and Other- These income streams were modeled in your plan. You can make updates by editing your plan.

Savings Drawdown: This income stream is automatically calculated based on income needed to cover expenses. It is made up of distributions from savings accounts, investment accounts, and retirement accounts. PlannerPlus members can see a breakdown of the distributions under Insights > Savings, scroll down to the Withdrawals chart at the bottom of the page.

Require Minimum Distributions (RMDS): This income stream is automatically calculated based on actuarial tables and the amount of money in retirement accounts after you turn 72.

Deficit: This income stream is shown to illustrate the gap in savings that are needed to fund the expenses in your plan.

Expenses

Expenses and Taxes: The blue line represents an aggregate of expenses, including expenses you modeled in your budget, mortgage payments, debt payments, medical expenses, and calculated estimated taxes. Estimated taxes include taxes on work income, savings drawdown, and realized gains from after-tax investment returns.

Milestones

Hover on the dots under the chart to view key milestones such as paying off your mortgage, the end of working, starting Social Security payments, etc.


What should I look for on this chart?

  • Notice when different income streams start and stop

  • Notice if the columns are taller than the expense line. This means that you have more income than expenses.

What should I do next?

  • See how the chart changes if you change your plan assumptions from optimistic to average or pessimistic.

  • See how the chart changes if you update something in your plan, such as working longer, spending less, or saving more.

Did this answer your question?