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Gap Analysis |
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Gap Analysis |
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Gap Analysis
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Gap Analysis |
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Gap Analysis |
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The Gap Analysis calculator gives a quick visual illustration of retirement income sources, needs analysis, and shortfall analysis. A comparison can quickly be made between projected income sources and income needed; and, if there is a projected shortfall, the required savings.
The Gap Analysis Calculator extends the functionality of the Quick Gap calculator by adding the following features:
1.The Tax Wise Distribution Strategy, a strategy designed to reduce a client's income tax in retirement.
2.Custom lump sum or monthly cash distributions, such as a one year vacation expense at retirement or a long term care event.
3.Income modeling in retirement can be entered as a percent of income or a specific dollar value. Also, income needs in retirement can be reduced as a client ages.
4.Easy illustrations for federal retirement plans (CSRS and FERS, as well as FEGLI).
5.Additional calculation screens are available, including a DB Buy-Back Comparison and FEGLI (related to the federal retirement plans).
6.Ability to change the distribution order of accounts during retirement.
7.The calculated income from Social Security can be adjusted.
Income sources can include:
1.The client's and, optionally, the spouse's retirement plans (including defined benefit plans).
2.Social Security.
3.Savings accounts (such as an IRA or retirement plans from previous employers).
4.Known cash flows (such as rental income or part time work).
5.Known lump sums (such as the sale of an asset or a life insurance settlement).
After the data entry, the projected retirement income is then compared to the client's retirement income need to determine if additional savings is required. If savings are needed, various solutions for retirement are calculated and displayed.
The data entry for the calculator is divided into tabs:
The tabs may be put into two categories: data input and calculations. Each category is discussed in its relevant link below:
If there is a data entry problem on a page, the tab(s) to the right of the tab with the data entry problem will be disabled. For example, in the image below, a data entry problem exists on the Retirement Income tab.
To determine what the data entry problem is, select the last available tab (the tab farthest right that is enabled). There will be a "View Error Messages" button at the top-tight of the page.
A message will be displayed about the problem with the data on the current tab.
