maximum Indebtedness--simple questions
I'm sure this has been answered plenty, but my search function keeps sending me back to the Home page. Here's the question, then:
How to comprehend "maximum indebtedness" in the Assumptions section?
I realize that it is just a means for showing how to smooth the projections. But is it only theoretical-- how might it work in reality?
Let's say it takes $500,000 of maximum indebtedness to smooth discretionary spending/ consumption over the next 25 years, with the next 10 years requiring more money to reach that smoothing goal. Could the smoothing, then, be accomplished by borrowing from savings accounts, for example?
This is the hardest thing for me to picture-- to move it from the theoretical to the practical.
Let me know some ways to think about this. Thank you. Charlie