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Regarding using the right capital software to plan...
# right-capital
f
Regarding using the right capital software to plan for one account to have for many various simchos over varying timeline for multiple children how do I run the test?
m
under the retirement tab
it will account for all your simchos
if you have any questions how to use it please ask!
f
I see I go to the Action Items and modify how much I will hope to contribute, but my question is what is it using to get the money? Just the Savings section? Right now I have two things - 401k and Joint Taxable - but lets say I want to use JUST the joint taxable?
m
under retirement -> cash flows -> accounts you'll see if you need to pull frum the 401k to cover any of the simchas, if you dont' want to do that, you'll increase taxable in the savings tab
f
thanks
and I am assuming Right Capital factors in the fact that I will taking out considerable chunks AKA bar mitzvah prior to the long term AKA last childs wedding
meaning my first thought is let me have an account running for 25 years seperate from account running for 10 years
m
no need to assume anything, you can view the cash flows directly in the cash flows tab
you can see all the early withdawls and what account to take from
no reason to have accounts runnign separately, money is fungible
f
you mean it's all one basket anyways no matter how you slice it up in my accounts?
m
correct
pretending like that isn't the case only causes suboptimal decisions
even though its the natural thing to do
f
is the cash flows tab assuming inflation?
the number are higher than when I put in
m
yes
the whole application applies inflation automatically
f
it just took a while to get the software to run the scenarios to JUST target how would my one taxable account pay for simchos - meaning I had to remove the House goal and the Seminary etc
m
right, bc the goal is to not do that and to not try to designate specific accounts for specific goals since money is fungible
f
right. But let's say I want to sit down today and make a "mini" financial plan how to save for simchos without having to factor in a house and other things like future tuition, is that something that should not be done? I mean maybe others can relate but essentially I'm not sure how I'm going to buy a house or pay tuition in the future (income is currently in flux) but some things I imagine to be more set in stone. Just my own little life experience that people somehow get away with the tuition or house or whatever but simchos just seem to be the biggest looming expenses that just get dumped on a person at one shot and they are not surprises, so I want to now just plan for those
m
Right I mean if you want to make a plan where you keep renting and receive tuition breaks do that, but making a plan that isn't possible by just ignoring variables is definitely useless.
f
😐
m
Makes sense?
f
kinda
m
I would make as many conservative assumptions as you can for you to feel comfortable with the reality that you're designing. If that involves tuition breaks include it. If it involves the possibility of not buying a house, you should include it. Then you have a plan that is worst case scenario that you know is still viable.
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