One Time Savings Deposit?

[mountainsoft]

When my wife retires she can cash out her unused vacation and sick leave. We would probably put this one time income in a taxable high rate savings account. This would have a different interest rate than our retirement savings (IRA).

How would I model this in the Flexible Retirement Planner?

[palgup]

If I interpreted your question correctly, this is what I'd try.... I would add a line for taxable savings on the additional inputs screen. Start year = end year, whenever that happens to be.

I assume that the interest you'll get in the savings account will be less (and std deviation non-existent) than what you've entered for your investment return rate on the main screen. So the issue becomes how to model it so that the return rate for this savings account is different from the average rate of return you've entered for investments on the main screen.

I believe the tool always takes distributions from taxable first. Start by seeing how long this pot of savings account $ stays in your portfolio before being depleted - lets's say it's 3.5 years. You could then use the top form on the additional inputs section to override portfolio return (with standard deviation of zero) for the first 3 years, then add another entry for the 4th year where you average your rate of return on the main screen with the return you expect from the savings account. Run a simulation and see how this impacts how long your savings account $ lasts, and adjust the numbers for that final year in the top form accordingly.

[mountainsoft]

I'll give it a try, thanks!