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Failed Scenario Question

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(@reed981)
Active Member Customer
Joined: 3 years ago
Posts: 3
Topic starter  

I have input a scenario where expenses exceed income significantly. On the tabular projections summary page all the account values drop to 0 except for HSA which continues to grow.

When all the accounts are totally depleted, and social security is the only income, and the expenses exceed the income by >$100K, shouldn't the simulation stop? Or otherwise indicate a failure? Based on this summary page it looks like it is somehow continuing.

I feel like I am missing something but I can't figure it out.


   
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(@smatthews51)
Member Admin
Joined: 4 years ago
Posts: 688
 

Ryan,

No, you're not missing anything. The tool does all the math but it doesn't generate too many pop-ups or things like that to interpret the results for you; however, I'd say that hitting a zero balance is a major indication of a failure.

Stuart


   
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(@hines202)
Reputable Member Customer
Joined: 3 years ago
Posts: 331
 

Hey Ryan, if you think the result is unreasonable just do a careful audit of all the dat entry pages, from top to bottom. It's easy to miss something that may have been 'sample' input, etc. Comb through those expenses and make sure they're realistic.

I've had some clients that wanted badly to retire, but were hitting below 90% success rates in PRC, or zero balances. We work together to fix that by finding ways to save money in the monthly expenses, optimizing Social Security, looking for 'lost' 401ks and pensions (there are trillions of $ out there!), and finally finding something they *love* doing that we can monetize (part-time, often at home or on a beach) at least in the early retirement years to make this happen.

Optimizing any investments is important as well. Cut expenses/fees on those where possible. Sometimes we have to invest a bit more aggressively to make the math work, if they're comfortable with that.


   
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