FinanceBase-Lifetime Finances


FinanceBase-Lifetime Finances uses your assets, income & expenses during your lifetime to project whether you will outlive your money. It can be used at any age and provides a yearly cash flow (income less expenses, including taxes) from now to 45 years after retirement. If desired, changes can be made in any year. If the free on-line retirement calculators leave you wishing for more, and you do not want to pay a financial advisor each year, try one of the most comprehensive, lifetime financial planners available.

Why use Lifetime Finances? Because planning for retirement is more than trying to save enough to meet some magical “rule of thumb”. Only comparing expected expenses (including income taxes) against income (from all sources, including assets and the selling of assets as needed) provides the confidence needed. Each time data is entered, assets are adjusted to provide the required income to meet the expenses, the charts are updated and an analysis is provided that summarizes the situation. Long term effects of asset accumulation and spending habits become quite visible and corrective actions become obvious. What-if analysis is simple and easy to do.

Contents

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Access to Lifetime Finances

For the standalone FinanceBase-Lifetime Finances product, after login, the application shows a File menu and a Lifetime menu. The Lifetime menu has 5 items: Accounts, Accounts Summary, Calculator, Calendar and Lifetime Finances

For all of the other products, Lifetime Finances is a menu item on the Finances menu.

When the Lifetime Finances menu item is selected, two windows open: Lifetime Finances and Lifetime Finances Charts.

Explore the features described below and try as a Demo for 31 days. If it suits your needs, order a License for whatever product is desired. Pricing is given on the Products Download page and on the Order page. To download FinanceBase, go to the Products Download page. For the standalone FinanceBase-Lifetime Finances the price is $70.00. Return to Contents

Click on any image to enlarge it in an overlay popup. Click anywhere to close the overlay.

Lifetime Finances Features

As with all FinanceBase products, the features and capabilities in FinanceBase – Overview are available. The following are some of the additional features provided by Lifetime Finances.

Designed to Grow with Your Needs

  • Organize Required Data: There is a lot of data required to make a lifetime finances plan. Answering a few questions or providing a few inputs is not enough data. The data needs to grouped to make it obvious they are related. More details must be easy to add.
  • Application Design Philosophy: As little input as possible, in a few minutes, to get a result. Then more detail to improve accuracy. Then lots of places to make changes.
  • Results valid at each stage: The results are only as accurate as the data entered, however, no shortcuts are taken at any stage.
  • Lots of Charts: A chart is much more informative than a column of numbers (which are also provided).
  • Automatic calculations can be over-ridden: The user can change almost everything in any year. The charts show the impact. For example, change rates, buy/sell assets, decide how assets are distributed between each person.
  • Support Stress-testing and Automatic Adjustments: Provide as many tools and options as possible to permit the user to see if the lifetime financial plan can survive changes.
  • Make it exciting to find included features: Not all features are obvious and hidden intentionally to not confuse the novice user. Read the manual and/or try different things on each page or chart. For example, there is an animation of Chart 3, Assets can be set to a fixed rate above inflation (Entry page), some assets can be reinvested (Income pages).

Start Simple, Add Reality, Try Alternatives

  • Initial Entry can be done in 15 minutes. If data is not available, guess and examine the results. Only use the Entry page.
  • Refine data as it is available to ensure that the results are as accurate as possible. Consult your accounts and check your spending. Then update the Entry page and/or use Expenses Details page. 
  • Make Lifetime decisions. For example, on the other pages,
  •      – When and how much of a mortgage.
  •      – When to buy a car and how much can be afforded.
  •      – When and how much for vacations.
  • Save different lifetime options and reload them later to compare. Each can be opened in a separate window.
  • Perform What-if using the special window or changing data manually. On the Entry page, change Inflation rates, expense values, savings rates and amounts, etc.

Enterable Data on the Entry Page

  • • Country: Canada or USA.
  • • Any Province or State
  • • Tax year
  • • Personal information: name, year of birth, retirement age.
  • • Expenses: now and when retirement, in todays dollars.
  • • 3 Inflation Rates: expenses, pensions & tax brackets
  • • Government pensions: Canada – CPP, OAS, GIS: USA – Social Security
  • • 3 Salaries and Private pensions.
  • • 5 Asset classes: Cash, Shares, Dividend Shares; Canada – TFSA, RRSP; USA – Roth IRA, IRA
  • • Include a second person: can be a spouse.
Canada Entry PageLifetime Finances Entry CanadaUSA Entry PageLifetime Finances Entry USA

Results shown on the Charts Window

  • • Charts updated each time data is changed.
  • • Up to 45 years after retirement plus pre-retirement.
  • • Available Income vs Expenses by year.
  • • Excess and/or Shortfall shown for all years
  •     Green is for assets added – a good year.
  •     Orange indicates assets used – an acceptable year.
  •     Red is a bad year – outlived assets & not enough income.
  • • Analysis each time data is changed.
  • • Total Assets by year and by class for any year.
Canada Charts WindowLifetime Finances Charts CanadaUSA Charts WindowLifetime Finances Charts USA

Charts and Enterable Data on Other Pages

  • Lifetime Finances Menu• Maximum of 17 Pages which change depending on if there is a spouse and the Person’s Name. (See below for screenshots.)
  • • Expenses Details: can itemize expenses and change any year.
  • • Mortgage Schedule: can set balance, payment and interest rate.
  • • Payroll Deductions: can be set to automatic calculation based on income or changed yearly.
  • • Extra Expenses: one-time or continually from an enterable age.
  • • Income and assets for yourself and spouse.
  • • Taxes by year, with or without Pension Splitting for Canada or Filing separately or jointly for USA.
  • • Income and Private Pensions: can be adjusted for any year.
  • • Capital Gains and Other Income: can add in any year.
  • • Assets: can be added or removed in any year.
  • • Inflation and Investment Rates: can be changed in any year.
  • • Death of a Person: year of death can be assigned and any percent of the assets transferred to the survivor.

Assistance

  • • Automatic Iteration to eliminate a shortfall.
  • • Asset Movement summary by year and person.
  • • Tips & Wizard for assisting data entry.
  • • Context-sensitive Help
  • • User Manual
  • • Examples for each age group. Return to Contents

Some Questions Lifetime Finances Can Answer

Not yet 30

  • • What assets and/or pensions will you need in retirement?
  • • What is the impact of the company pension plus government pension at retirement?
  • • If you put away money each year, what will the result be at retirement?
  • • What difference is there at retirement for IRAs/RRSPs, tax free savings accounts, shares?
  • • What will your expenses have to be so that assets are not depleted in retirement?

Just starting a family

  • • How much money should you put away each year to have enough assets to retire?
  • • Is there a difference in accumulating assets as RRSPs or IRAs, tax free savings accounts or Roth IRAs and shares?
  • • What happens if you change jobs or encounter other major changes in your position?
  • • Will you be able to save for your children’s education?

Thinking about retirement in 10 years

  • • What new assets should you put away for different lifestyles?
  • • What is the impact of taking Canada Pension Plan or Social Security early?
  • • What is the impact of turning RRSP’s into RRIF’s early or withdrawing from IRAs early?
  • • What should your expenses be to stay within future private and government pensions?
  • • Do I have to work past 65?

Already retired

  • • At what age will your assets be depleted at your current spending level?
  • • Is there excess income to use for travel or to help your children?
  • • Does splitting pensions or filing jointly help? Return to Contents

Screenshots

These are for Canada. Details are given in the user manual when FinanceBase is downloaded and in the context-sensitive Help when the application is open. Click on any image to expand it in an overlay.

What-If WindowLifetime Finances What-IfExpenses DetailsLifetime Finances Expenses Details
Extra ExpensesLifetime Finances Extra ExpensesAssets Per YearLifetime Finances Assets Per Year
Income for Person 1Lifetime Finances Income 1Assets for Person 1Lifetime Finances Assets 1
Income for Person 2Lifetime Finances Income 2Assets for Person 2Lifetime Finances Assets 2
RatesLifetime Finances RatesTaxesLifetime Finances Taxes
Asset MovementLifetime Finances Asset MovementAccountsLifetime Finances Accounts
Government ValuesLifetime Finances Government ValuesChart ValuesLifetime Finances Chart Values
CalculationsLifetime Finances Calculations

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