My wife has a separate Taxable Account that is her part of her inheritance and maintained as separate property. We have agreed not to touch it for OUR expenses.
I would like an option to say, you can't use this account to cover Cash Shortfalls but still include the account in our model since I need to pay taxes on the Dividends.
Thoughts?
Change your cash "floor" to include that account?
I don't think that approach works since we are talking about a Taxable Brokerage Account not the Cash Account.
I was just looking for a way to model it with the program as-it-is. By including it in the cash account in pralana, with a floor, and assuming you could accurately set the AA of cash to reflect it, you might be able to accomplish your goal of bucketing it for heirs and having it taxed correctly.
Someone asked a similar question about Roth Conversions and protecting a portion of the IRA balance...
Hi, there is not a currently way to do this, but we will probably add a a capability to define a minimum balance for the taxable and IRA accounts (or all accounts) similar to the Cash account 'floor'.
This floor would be inflated and withdrawals would not be allowed to reduce the balance below the floor.
The only complication I can think of is insolvency: If you specify a floor of say $1million, you could conceivably go 'broke' with $1million (inflated) in that account. We could change the cash shortage/unscheduled withdrawal logic to make 2 passes...the first honoring your floor and the 2nd not honoring your floor....this is just an added complication. And Scheduled Withdrawals would not be allowed to dip into the floor amount.
