Capturing the sale of a residence in Silver Financial Planner is a straight forward three-step process, but there is one special tip that you would not know unless you called into our support team so we wanted to make sure we passed this tip along.
1) Enter the current residence value under the Additional Assets/Debts data input. And here is the tip -> skip using the first entry with the pre-populated description of “Residence.”
By default, Silver assumes the residence will be maintained, and a line on the Retirement Profile report page reads “Current residence(s) will be maintained. Related debt will be paid per existing mortgage(s).” In order to prevent this line from displaying on the Retirement Profile report, do not enter the residence value under the first entry point with the hard-set description of “Residence”. Instead, use one of the additional lines by manually entering the description of “Residence” and and the current residence value. This will ensure the residence value is included for the client’s current net worth statement, and prevent the “Current residence(s) will be maintained.” lined from displaying on the Retirement Profile report.
2) Capture the proceeds from the residence sale using the “Special Income Planner”. Enter the year the residence will be sold, and the number of years as one. Enter the income the client will receive after paying off any mortgage balance(s), fees, and taxes (the client’s net proceeds from sale).
3) This third step is only required if the client had a mortgage on the residence that will no longer require a monthly payment. If the residence sale occurs prior to retirement, the easiest method is to eliminate the mortgage payment for the retirement age expenses. If the residence sale occurs after retirement, and you are following the suggested method for handling mortgage payments, simply ensure the years remaining on the special expense item reflects the payments stopping in the year of sale.
