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Planner Operations: Funding Expenses
Planner Operations: Funding Expenses

This article describes the Planner's functionality around expenses.

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

Funding Expenses and Savings Drawdowns: Expense Hierarchy

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.

  • Recurring Expenses

  • Home and Real Estate Expenses

  • Healthcare Expenses

  • Debts

  • 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 governed by the withdrawal order. Once all of your savings are depleted, the Planner will resort to modeling debt. We refer to this as a deficit.

Note: If your expenses seem higher than expected on the Lifetime Retirement Projection chart, this is typically due to our increasing expenses at your general inflation rate.

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