Calculating and funding your expenses

When you enter your details into the Planner, you describe your income and 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:

  1. Recurring Expenses

  2. Home and Real Estate Expenses

  3. Healthcare Expenses

  4. Debts

  5. Taxes

Once the Planner computes your expenses, the Planner funds your expenses. The Planner first attempts to fund your expenses (including plan dependent taxes) using your income. If the income coming into the plan is not enough to cover the expenses going out, the Planner will draw down from savings. Once all of your savings are depleted, the Planner will resort to modeling debt.


Withdrawing from your accounts

When the income coming into the plan is not enough to cover the expenses going out, the Planner will draw down from savings.

The Planner will withdraw from your assets as follows:

  1. Taxable Savings

  2. Tax-Deferred Accounts

  3. Roth Accounts

  4. HSAs

Within each category, the growth rate on accounts will influence the order of withdrawals. Accounts with the lowest growth rate will be used first, allowing accounts with higher growth rates to continue to grow for the longest period of time.

You may consider making slight changes to the growth inputs, such as 7.9% instead of 8%, if you'd like to influence the order of withdrawals in your plan.


It's important to note that your accounts likely have a variety of tax treatments. As a result, when the planner withdraws from a particular account, your tax modeling will be impacted. Excluding accounts from the withdrawal strategy, or entering one-time expenses, disbursements, and transfers will also impact your tax modeling.

Because the Planner includes your taxes in your expense modeling, any changes to your tax modeling will impact your expenses. It is an inevitable circular process you'll want to be aware of as you work on your plan and make adjustments..


If you'd like more information regarding excluding accounts from the withdrawal strategy and customizing a withdrawal strategy, please see the linked resources.

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