# Real Asset Income on Current Saving page

1

http://www.esplanner.com/casetracker/13451

2

Hi Lowell:

When I try to access the link you mentioned I get the error message shown below. Can you tell me how to access the answer/link?

My thanks,

Peter

We're sorry. But you've tried to access a page to which you don't have permission. If you were trying to download one of your previously purchased files and were sent to this page, then your subscription has expired. You can see your order page and the date there to verify your last purchase by clicking on My ESPlanner top right.

If you purchase an update, you will be given access to the files you see in the files area of My ESPlanner.

If you were trying to login and were sent to this page, it could be that your account is on our ESPlannerBASIC site."

3

Sorry, that link is to a ticket - my mistake

Here's the relevant part of the text Mike wrote:

ESPlanner assumes that the Regular Assets that you input are the value your assets as of 31 Dec 2011 in 2011 dollars. That's what appears on your end of year brokerage statements. They are shown in the Inputs and Assumptions>Regular Assets section.
The Regular Assets that are shown in the Suggestions > Regular Assets section, are the values at the end of each year (EOY) and like all of ESPlanner's output are in 2012 dollars.

For example, if you had \$100,000 on 31 Dec 2011, and withdrew \$10,000 during 2012, your 2012 EOY balance in 2012 dollars would be \$94,000.
The calculation is as follows:
1.04 * \$100,000 - \$10,000 = \$94,000
The multiplication is necessary to convert 2011 dollars to 2012 dollars.
In subsequent years it is not necessary to kick the prior year's balance since they are already in 2012 dollars.

Nom Assets Inc in the Federal Taxes - Joint Filer report is used for internal calculations within the Computation Engine and is equal to Regular Asset Income divided by (1 + Inflation).
AGI includes the total return on regular assets and is shown in 2012 dollars.
You can calculate total return as follows:
Total Return = [Nominal Rate of Return/(Nominal Rate of Return - Inflation)] * Regular Asset Income.
Total Return = [6%/(6%-4%)] * Regular Asset Income = 3 * Regular Asset Income

Thanks,

Mike

4

Hi Lowell:

Thanks for pasting the relevant information. I still don't see how ESPlanner produces "Real Asset Income" on the "Current Saving" page of \$101,571, using the assumptions I mentioned in my original post (BOY Assets of \$2 million, inflation of 2%, and mean real return of 4.708% in Monte Carlo simulation with cautious spending of 1/2 mean real return).

I would be greatful if you could use these values to show me how ESPlanner arrives at this Real Asset Income figure.

My thanks,

Peter

5

Sorry, I didn't notice you were talking about Monte Carlo. That's different. Rather than guess, I'll let Dick or Larry answer this one. (I'm the U.I. guy)

6

Hi Lowell:

Can you ask Dick or Larry to see if they can answer my question?

My thanks,

Peter