Tuesday, March 4, 2014

Special Expenses

10:41 AM



Question:

I have been using RetireWare to elaborate several files to plan our retirement. I have been trying to include the sale of our actual house in two years, for example, and buy a new one at a higher price in the same year.

I cannot find any place in any of the topics where such a financial exercise is possible. Il could also be the sale of a house and the purchase of a sailboat or a motor home or whatever and its sale several years later.

Maybe another way to look at it would be to add a section where we can simulate an important withdrawal from a particular sources of cash. There is already a section where you can indicate a source of additional assets.

Answer:

Please note that in the Forecast page you can enter special periodic expenses on the Retirement Income Target tab. If it is a one-time expense, enter "0" as the frequency. Frequency of 1 means annual, 2 every two years and so on.

These can be used for one-off items purchased as part of your retirement budget.

Also, in 'Budget Information', you can set up a short-term or medium-term non-retirement savings plan for acquiring a new asset or purchasing some expensive goods such as a boat.

If you want to model the purchase of a more expensive home, keep the current residence and add the difference as an 'Other Property' on Financial Information page. For example, if your house is worth $500,000 and the next house is $600,000, enter $100,000 as 'Other Property' (and the extra mortgage if any).

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