by Carolyn Rothwell on September 9, 2014

Summer Release of TOTAL Planning Suite - Available Now!

A new version of TOTAL Planning Suite is available!  This version includes three new features to improve your planning using Easy Money and Golden Years. 

Feature Summary:


1.  Future Year Detailed Cash Flow

The detailed current year cash flow statement, listing each income and expense line item, is now available for a future age of your choice. Simply enter the client's age for the detailed future year cash flow report. 

2.  Present Value Line on the Retirement Capital Graph

The retirement capital graph includes a new option to display the asset values in today's dollars. Adding the present value to the graph helps your client's visualize their future capital relative to today's dollars. 

3.  State Tax Exempt Retirement Account Withdrawals

For states that do not tax retirement account distributions (like Illinois, Pennsylvania and Mississippi), the state tax settings has a new option to indicate retirement account withdrawals are exempt from taxation. 


For the desktop edition, automatic update notifications for this release will be turned on shortly.  You can also update to the latest version (5.0.230) now!  The online edition is updated with the latest version and newest features automatically. 


Feature Details:

1.  Future Year Detailed Cash Flow

The entry to set the clients age for the future year detailed cash flow report is located in the Assumptions section, Report Options tab. If no age is entered, the program will default to individual 1's retirement age.


The future age detailed cash flow report will display immediately following the current year cash flow.  In Easy Money, the future cash flow is located in the General section, report A15a.  In Golden Years, the new report is located in the Cash Flow/Debts section, report B6a. 

Please Note: This new report page is included for any pre-defined report sets that include the current year cash flow.  If you are using custom report sets, please add the new report to your selected pages to include it for your projections. 


2.  Present Value on Retirement Capital Graph

The option to include the present value line on the retirement capital graph is found on the Assumptions section, Report Options tab in the desktop edition.  In the online edition, the option is located on the Reports tab, as show in the image below. 

The calculation to determine the present value of the assets uses the discount rate for NPV calculations set in the Assumptions section.  In the desktop edition, the discount rate is entered on the Other Assumptions tab.  In the online edition, the discount rate is entered on the Default Rates tab, Other Rates section. 



The present value line will be added to the Retirement Capital Estimate graph.  In Easy Money, the graph is included on report C2 in the Retirement section.  In Golden Years, the graph is included on report F2 in the Summary section.  



3.  Retirement Withdrawals State Tax Exempt

This option is found in the Settings section for State Tax.  Simply check the box to exclude retirement account withdrawals from state taxation.  Remember, we also have the option to exclude Social Security income in the state tax section, and to exclude pensions on the pension input from state taxation.    


Golden Years includes an full federal and state tax calculation each year.  Looking at the State Income Tax report D17, with the option to exclude Retirement Account Withdrawals and Social Security for this example using PA, you can see the Incr/Decr State Taxable (column 5), reduces the Net State Taxable income (column 7) by the amount of Social Security and retirement account distributions (report image below). 

Easy Money includes a full federal and state tax calculation for the current year only.  This means the option to exclude retirement account withdrawals from state taxation will only be included when the program calculates the client's marginal tax rate in the current year.  The program uses the calculated marginal tax rate throughout the projection, and it can be optionally adjusted post-retirement by using the optional tax rate in the tax data input section.  If your clients are currently working, and you would like to reduce the marginal tax rate to reflect the lower state tax rate due to the exclusion of retirement account distributions, use the tax rate override at retirement. 


Questions on the new features?  Contact our support team by calling 877-421-9815 ext 0 weekdays 6:30-5:00 pacific time. 

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Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance of financial planning.