Secondary menu

Suggestions Page - Do Not Understand How Consumption (Current Amount) is Generated

Submitted by BRDaniels on 12 October 2010 - 3:14pm

I am just starting to do some modeling in ESP and I am really confused as to how the suggestion for consumption and savings is generated. For example, in the Suggestion page of the output it has Consumption recommendation being $134,644 and Current Amount as $204,953. However, when I go into the detail I get the below. Please help.

BRD's Non-Asset Income $326,633
JLD's Non-Asset Income $145,000
Reg Asset Income $39,074
Real Estate NCF ($6,150)
Total Income $504,557

Special Expenditures $49,050
Housing Expenditues $22,964
BRD's Retirement Acct Contribution $6,000
JLD's Retirement Acct Contribution $21,500
Total Spending before Taxes & Consumption $99,514

Total Taxes $157,901
NCF Available for Consumption (not per ESP) $247,142

Consumption Recommendedby ESP $134,644

‹ Partial Year How to enter data when money is kept separate ›
Submitted by Dan Royer on 12 October 2010 - 11:52pm.
1

Looks like the difference is Saving. In the Suggestions you'll see saving of about 70K saving? And is there life insurance recommended in spending? And there is also some annual inflation. It's hard to say without seeing all the numbers.

Submitted by Laurence Kotlikoff on 13 October 2010 - 3:07am.
2

Give me a ring at 617 834-2148. We'll sort this out. best, Larry

Share this

Navigation