RMDs suspended for 2020

As part of the CARES act that was signed into law on March 27th, Required Minimum Distributions (RMDs) have been suspended for 2020. Accordingly, we have updated the projections so that no RMDS will be reflected in cash flow year 2020. Note that this only applies if you are using the setting showing cash flows starting Jan 1st of the current year.

Paying off future reverse mortgages

If you illustrate clients taking out a reverse mortgage in the future by entering on the Profile / Income screen, you can now show paying down the reverse mortgage debt by adding extra debt payments on the Profile / Expenses screen.

Post-retirement allocation option

Under client settings, the ‘Glide path’ setting now includes a new option that allows you to specify separate pre-retirement and post-retirement asset allocation models. If this setting is used, you can indicate both an ‘Asset Allocation’ model in the Retirement / Analysis action items that will be used up until retirement and a ‘Retirement Allocation’ model that will be used post-retirement.

Negative appreciation

When entering income or expenses, or property / business / other asset values, you can now enter a negative annual appreciation/increase amount to reflect a decrease in those values over time.

Charitable donation of assets

When entering a ‘Charitable giving’ expense, a new type has been added that allows for donation of appreciated assets. This can be used to reflect scenarios such as someone donating stock or tangible assets to charity. When this option is selected, you can enter a ‘Cost basis ratio’ reflecting the percentage of the amount that is basis as opposed to growth.

New medical expense options

When entering a medical expense, there is now a 'Type' field that allows you to distinguish between out-of-pocket expenses, pre-tax contributions to employer plans, or self-employed health care expenses. All options will display under 'Health Care' in the cash flow expenses.

AssetBook integration

Integration with AssetBook is now available! This integration, currently in Beta mode, allows you to link account information held at AssetBook. For instructions on how to set up the AssetBook integration, please visit the Help Center.

Cash management setting

We have added a ‘Cash management method’ setting that allows for additional options for handling bank accounts and cash. You can still use cash reserve goals to illustrate investment of cash, accumulating cash reserves over time, or changing cash levels during the course of the plan.

In addition, we have added two new settings that allow for assets currently in bank accounts to be treated as cash without having to add a cash reserve goal. You can also choose whether cash or taxable invested assets are spent first when liquidating assets to fund cash flow needs. To determine which setting is best for you, please see this Help Center article.

Loans for businesses and other assets

If you enter a loan where the type is 'Car' or 'Other', you have the ability to associate the loan with a lifestyle asset (such as a car) or a business. When linking a loan to an asset, if that asset is sold, the outstanding loan balance will be paid off.

QCD from qualified annuities

In addition to illustrating qualified charitable distributions (QCDs) from IRA and inherited IRA accounts, you can now add QCDs from qualified annuities where the distribution setting for the annuity is ‘Regular withdrawals’. Note that while this is only permitted from annuities held as an IRA, we do not distinguish between different types of qualified annuities.