Projection Summary

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The Projection Summary contains a Projection Status and key numbers from the end of the Final Year of the projection. The Final Year occurs at the earlier of 50 years from now or when the surviving spouse dies as specified in the Plan section. Net Estate Value, Account Balances any Principal Residence Equity and other Real Estate equity for the Final Year are shown. These can be displayed in final year dollars or current year dollars (also called Net Present Value or NPV) depending on your selection in the popup menu. The size of the amounts expressed in final year dollars may surprise you but bear in mind the compounding effects of inflation. 50 years ago in the 1970's the average house price was $30,000.

The Projection Status is based on values you have entered and assumptions made by the spreadsheet. Always obtain independent financial advice. It will contain one of the following:

Funded: Your retirement is fully funded.

House Poor: You own your home but you will go into debt at some point to live there. Consider downsizing or a reverse mortgage.

Underfunded: Your projection is underfunded in one or more years. Consider working longer, reducing your annual budget and/or changing your retirement fund withdrawal strategy if funds are available.

Retirement planning typically involves two types of scenarios. The first involves maximizing the amount left to heirs. In this case, a typical lifespan is used and the goal is to maximize Net Estate Value. The second involves ensuring that the retiree(s) do not run out of money. In this case, a maximum lifespan is used and the goal is to ensure Account Balances remain above zero. Unlike the Charts which show your Plan over time, the Projection Summary allows you to see the effect of your Plan choices in a single number.

Hints are suggestions that may improve your projection. The first hint (if any) and the year when it occurs is shown here.

Warnings indicate a problem with your projection. The first warning (if any) and the year when it occurs is shown here.