FinanceBase-Lifetime Finances takes the data you enter and performs a number of calculations each time a value is changed to produce the tables, charts and analysis that are displayed on the windows and pages.
FinanceBase-Lifetime Finances performs the following calculations for each year starting at the tax year selected, each time a value is changed:
– The projected Expenses using the inflation rate entered.
– The projected Government Pensions using the inflation rate entered.
– The projected Salaries and/or Pensions using the Amount, % Increase per year, % expected for the pension and the inflation rate entered, starting from the tax year.
– The projected value of each Asset using the % interest rate that you enter.
– The federal and provincial or state taxes, using the data shown on the Government Values page for the tax year selected, using the Taxes Inflation rate to adjust the tax brackets.
From the information entered, the application compares income against expenses and taxes in each year.
– If there is too much income, the excess is added to Assets.
– If there is not enough income, money is taken from Assets.
The order of adding to and taking from assets can be set on the Calculations page. The application uses the percentages you enter as to how each person’s assets are to be used in this comparison.
The results are shown on the charts and the arrays on each page. In particular, Chart 2 on the Charts window summarizes the difference between Income and Expenses and how assets are adjusted. If assets are depleted, this is clearly shown in red on Chart 2. An analysis is presented below Chart 2 as values are entered.
To change the order of adding to or taking from assets, drag and drop any asset type to another location. To defeat the automatic movement of assets, click on the appropriate check box below.