Hello,
My scenarios test varying amounts of money converted to Roth IRAs, and currently show very similar Total Net Savings (absolute), but I'm wondering whether there's a way for me to differentiate them based on Effective (post tax) Net Savings. For example, some scenarios end with high balances in tax-free accounts, and low balances in tax-deferred accounts which I consider more "valuable" at end-of-plan, even if the total net savings is the same as another scenario. Assuming my tax-deferred balances are really only worth about 75% (post-tax) upon withdrawal, I'd like Net Savings to consider this. Is there a way for me to simulate the effective value in Net Savings totals in the Tabular Projections to compare scenarios?
I've noticed the "effective dollars" vs "absolute dollars" switch on the Compare Fixed Rate Projections page. Maybe this is part of the answer, if that logic can be applied to the Net Savings or Account Balances in the tabular projections.
Thanks for any ideas
I'm sorry, but there's no mechanism to change the tabular projections to show effective dollars (they're always the absolute dollars); this is only done in the graphical projections shown on the Compare Fixed Projections page and the Planning Roth Conversions page. The values presented in the graphical form would be identical to those on the tabular projection if it was visible. I agree that a given balance in a tax-free account is worth more than the same dollars in a tax-deferred account, so please let me know if the graphical projections of effective vs. absolute dollars seems to be telling a different tale. Thanks, Stuart.
OK thanks for confirming. The graphical absolute projections seem to match the tabular projections just fine.
The effective dollars algorithm seems very helpful - I'd just also like to see it on the tables since I primarily review those to assess the relative value of each scenario.
Thank you for this great tool!
