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Modeling paying for vacation home in cash from different sources

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(@sweeney023)
New Member Customer
Joined: 3 years ago
Posts: 2
Topic starter  

My wife and I sold a vacation home for a significant profit and want to buy another vacation home with the proceeds, which are in our investment account, plus money withdrawn from her 401k account. Is there a way to model this in pralana gold?


   
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(@smatthews51)
Member Admin
Joined: 4 years ago
Posts: 689
 

Bob,

Yes, I think so, as long as your cash account balance is near its floor and your regular investment account is selected as the top priority account for the relevant time period in the Withdrawal Priority Table on the Financial Assets > Management page. You'll just need to decide how much you want to withdraw from your wife's tax-deferred account and specify that as a scheduled withdrawal in the relevant year in the Scheduled Withdrawals Table on the FA > Management page. PRC will then model that withdrawal and put the funds into the cash account (while also modeling the associated taxes). The expense of buying the new vacation home will be reflected in the annual cash flow that year. If that's negative, PRC will take as much as it can from the cash account until the balance reaches the floor and then go the top priority account in the Withdrawal Priority Table for the rest (presumably this is your investment account).

Stuart


   
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(@sweeney023)
New Member Customer
Joined: 3 years ago
Posts: 2
Topic starter  

Thank you Stuart! Your suggestion was very helpful.

This post was modified 6 months ago by Bob Sweeney

   
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