I'm a little "lost in the weeds" here. Does the contingent planning function enable me to make optimal choices re. reverse mortgage vs. immediate annuitys vs. rent after our home sale; SSI at 62 or later; Roth and regular IRA withdrawls, etc?
Thanks,
Nick Branch
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RSS
Nope, the Contingent planning is only for helping you to set up contingencies in the case of the death of one of the two of you. Ordinarily life insurance is based on the idea that the survivor continues on as usual. But contingency planning allows you to set up contingencies such as, "if I die, the wife will quit her job (or take a new job), or sell the house and rent, etc." Then, in the main report you'll see life insurance reflect these contingencies if you run the calculation with contingency turned on (and assuming you've made adjustments in the contingency folder).
For now you should leave contingency off until you learn the program better. What you want to do is change things like SS or ROTH vs 401k and recalculate and then look at consumption column and living standard column to see what difference it makes. You can save the profile with a different name. I would set up one conventional profile, then save a copy with a new name, and then run tests on the new one. If taking SS later leaves you with a large stair step (too little money and then a big jump) try compressing your 401k so that you dont take it over the entire life. Compress it so that you stop withdrawls five or ten years earlier and see how that help boost income when you need it. ESPlanner will smooth out the rest for you.
Dan