I noticed when I run an analysis, that depending on the spending strategy used, a column is added to the review->expenses->expense statement column...actually may be more than one, but I'm referring to the one labeled "variable spending". This number is also added into the value in the "total expenses" column.
I find this very confusing, because my expenses haven't changed, at not least according to my definition of expenses. I suggest changing this column heading to "additional withdrawals", or something similar.
The same issue probably takes place in other tables in various spots.
In a more general sense, I suggest "spending", "expenses" and "withdrawals" have firm definitions in the manual somewhere, and that they be used consistently.
Thanks.
@feh We'll take a look at this and seek improvements to avoid confusion.
Thanks for the feedback!
Stuart
@feh Thank you for your feedback. Stuart and I discussed your points by zoom and email.
Yes, we do use 'spending' and 'expenses' somewhat interchangeably and will review to clarify where needed.
Spending generally refers to your defined expenses such as College/Children/Phased/Healthcare/Charity, etc or a calculated variable spending amount when you use a spending strategy.
Expenses include your defined spending, any 'variable' spending, and taxes.
Withdrawals, on the other hand, are different. A withdrawal is a debit from an account, usually transferred to another account. An RMD, for example, is a withdrawal from a tax-deferred account with a corresponding credit to the Cash account, but is not spending or an expense.
Some withdrawals are specifically triggered by expenses, and represent a flow of funds outside the household/plan. Examples include a 529 plan withdrawal to cover a college expense or a withdrawal to purchase an annuity.
Charlie
@feh Thank you for your feedback. Stuart and I discussed your points by zoom and email.
Yes, we do use 'spending' and 'expenses' somewhat interchangeably and will review to clarify where needed.
Spending generally refers to your defined expenses such as College/Children/Phased/Healthcare/Charity, etc or a calculated variable spending amount when you use a spending strategy.
Expenses include your defined spending, any 'variable' spending, and taxes.
Withdrawals, on the other hand, are different. A withdrawal is a debit from an account, usually transferred to another account. An RMD, for example, is a withdrawal from a tax-deferred account with a corresponding credit to the Cash account, but is not spending or an expense.
Some withdrawals are specifically triggered by expenses, and represent a flow of funds outside the household/plan. Examples include a 529 plan withdrawal to cover a college expense or a withdrawal to purchase an annuity.
Charlie
Thanks for looking into this. In the end, perhaps no changes will be necessary other than defining the terms used.
I don't know what the technical definitions are of these terms, but to me, movement of money from one of my accounts into another of my own accounts should be referred to as a "transfer". Spending, expenses, or withdrawal, to me, is a total removal of those monies from my family of accounts.