Calculations: Total Income and Surplus/Gap

Boldin's total income calculation process is integral for accurate plan projections. It combines income from work, pensions, annuities, and passive sources, offering a detailed snapshot of user finances.

The total income calculation follows the formula: Income - Savings/Contributions - Expenses. It integrates income from work, pensions, annuities, and passive earnings while deducting planned savings. This ensures a clear view of available financial resources.

For instance, if a user experiences a monthly gap of $1,861, it would translate to an annual shortfall of $22,332 ($1,861 × 12). This ensures users understand how monthly gaps scale to annual projections for better financial planning.

Note: Income linked contributions will always be funded and when income is not adequate to fund income linked contributions, withdrawals may be taken from savings. Standard contributions are only funded when there is adequate income. Once work income has ended, no contributions will occur and the user must instead add transfers from one account to another.

Boldin also enforces IRS-defined annual contribution limits. For contributions exceeding these limits, users can model them as 'Standard Contributions' via the Money Flows section.

When total income exceeds your planned savings and expenses, you'll have Excess Income. Users have the option to save a percentage of this Excess Income into after-tax accounts via the Money Flows > Excess Income setting.

When planned savings and expenses exceed total income in your plan, you'll have a gap.