Pure newbie here. I've loaded everything for my plan, read the manual up to Roth conversions, and I'm pretty clear on everything so far. But I don't understand what is showing up 2 columns of the Rental Property Summary Table. For my case, Annual Rental Income for 2 properties is 39,600 and I set them up to be sold, 1 in 2028 and one in 2032. The Annual Windfall column correctly shows the sale of both as Windfalls in the appropriate years, but all other entries contain annual rent income when I would expect them to be blank: per the manual, Windfall is "from the sale of any of the properties" and there is no sale in any of those years. Is this an error?
The other mystery is Net Expense. The cell note states "Annual Expense - Annual Income - Annual Windfall". The manual says "(annual expenses minus annual windfall which, in effect, assumes you're applying the proceeds from the sale of one asset toward the purchase of another one in any given year)". The cell note math is the actual math that is being done: (AE-AI-AW not AE - AW), but I don't understand the line or the logic.
For a Sale Year, I end up with a large negative expense, so I guess that is Income. I do see it as income in the projections. My intent is to move the sale net proceeds into an investment acct, I thought I might need an offsetting deposit but I see that my Regular Savings goes up by about the net amount, so everything appears to work as perfectly as I could hope. So at least the Sale Year mystery doesn't have any negative effect.
The non-sale year is affected by the Income in Windfall column issue, so that I have effectively a negative expense of Annual Expenses - Annual Income - Annual Income, which = -Annual Income?
Am I just being flummoxed by terminology?
@heiplans Hi Dave, sorry for the confusion. The issue is a minor error in the "Annual Windfall" header and the corresponding discussion in the manual. It should be "Annual Income & Windfalls", and I'm making that correction in the next update. The math for the Net Expense column is actually Annual Expenses - Annual Income & Windfalls.
Stuart
Thanks for the fast and thorough response Stewart! The Income + Windfall column makes perfect sense now, thanks.
I think I'm just going to have to recalibrate my perspective on the Net Expenses column: I would think of this as Income - Expenses = Net Income. But I guess a negative expense is the same as income: potaytoe, potahtoe. Same with the mixing of spending and expenses: my perspective is that expenses are the essential subset of spending, but I guess it can be restated that total expenses = total spending = essential spending + non-essential spending.
I'm running Analysis' now. I have to say this is an amazing piece of work, hats off! I see now that I see that I probably bought in on the last year of an Excel version? Thats OK with me, as long as the web version is as fully figured and powerful, I'll be totally happy. Excel is a wonderful app, but working around its limitations for a mass market product is got to be restrictive. However, as someone who knows their way around Excel, I am amazed and impressed.
@heiplans Thanks, Dave. The web version will do virtually everything the Excel version does, and more.
Stuart
