If contingent planning is turned ON and I've deleted several special expenditures in the contingent planning/special tab, wouldn't that affect the results in MAIN report?
Thanks
James
Disclaimer: ESPlannerBASIC, ESPlanner, ESPlannerPLUS and ESPlannerPRO, are educational calculators designed to give users input in mapping out financial futures, but should not be acted upon as a complete financial plan. The creators of these programs are not certified, registered, authorized, or any other type of financial planners. These programs are simply tools for helping you think through economic futures. Its "recommendations" should be viewed as informative inputs into your own decision-making with respect to saving and the purchase of life insurance. ESPlannerBASIC, ESPlanner, ESPlannerPLUS and ESPlannerPRO provide neither economic, financial nor tax advice, which can only be delivered to you by authorized professionals.
RSS
James
if I understand the question, the results in the main reports will be the same if contingent planning is ON and there is no data in it as compared to being OFF. I assume you're looking at total spending/income?
Lowell,
My first question wasn't clear. I was referring to the Main report total spending. I turned Contingent planning ON and copied all my partner's & my special expenditures using the copy center. I ran two reports, contingent planning ON & OFF. I compared the results and there was no difference between the reports. No difference in standard of living, recommended life insurance, total spending, total income, etc.
We have lots of special expenditures & special receipts data that were copied into "Contingent Plans/Special" Shouldn't these have made a difference between the contingent planning ON & OFF reports?
Also, and item I reported as a contingent planning bug several times is still there. When I copy my partner's & my special Receipts, all her items copy but none of mine copy. No problem with special expenditures, just receipts.
Really appreciate if you can look into this bug & also help me understand contingency planning. Maybe I'm not using it correctly.
Thanks
James
James:
I think the part you may be missing is that the contingent planning is a place for you to change circumstances in the case of the death of you or the spouse. So ordinarily you would just run a survivor report and see how things work out. But you might also say to yourself: no wait, if I die, the spouse should sell that boat and then take a part time job. That's the stuff you put in the contingent plan. That's why copy is the first step. You copy everything to create an exact duplicate of your data set, then you change things in the contingency plan, then you look at the survivor report to see how it all works out with these new conditions stipulated in the contingency report.
So if you copy everything to contingency, but don't change anything there, then the survivor report looks just like it would had you not used contingency at all.
Dan
Dan,
Thanks for helping me understand contingency planning.
If I correctly understand your post, using contingency planning affects the survivor report and not the "Main" or "Detail" reports. Is that correct? It seems logical to me because the special expenditures & receipts which would "go away" if Diane or I die prematurely depends on the date of our premature death. For example, I have entered the cost of a new car in 2010 as a special expenditure. If I want to see how my death before 2010 would affect Diane's standard of living I would delete this item from the Contingent Plans/Special table & run the survivor report. In fact, I would delete all of my special expenditures and receipts after 2010 in my example that are impacted by an early death.
James
I'm sorry: I misspoke. With the CP button on, your regular reports (not the survivor reports) show these contingencies in effect as far as life insurance goes and insurance premiums as well as the survivor report. But with the CP button off, the main reports pull not from the CP data but from the regular data and the survivor report then reflects the regular data as well.
Sorry to confuse things. I hope that's clear.
Dan
So, for example, say you wanted to know how much life insurance you need on yourself. Ordinarily you'd just run a report, look at annual recommendations, and note how much you need. But in the event of your death, you plan not to buy that second car, and you planned not to receive a big inheritance, then you would set that up in the contingency folder and run the reports again--this time the regular report will adjust how much insurance you need with those contingencies in effect. It will not show you dead in the main report; it only shows how your personal economy must change in order to be ready for the contingencies in effect for such a death. Your insurance will go down (or up) depending on your contingencies. And of course consumption will change accordingly.
In other words, you won't see the report change in the main report. It will still show that inheritance coming in. But it will show the insurance needed to protect your scenario in case you die and the inheritance will not be coming in. The survivor report, of course, will not show an inheritence coming in.
Does that make sense?
Dan
HERE'S YOUR QUESTION:
If contingent planning is turned ON and I've deleted several special expenditures in the contingent planning/special tab, wouldn't that affect the results in MAIN report?
THE ANSWER IS YES, IT WOULD CHANGE THE MAIN REPORT RESULTS BUT ONLY IF IT CHANGES THE REQUIRED LIFE INSURANCE AND, THEREFORE, THE REQUIRED LIFE INSURANCE PREMIUMS.
BEST, LARRY