Money Flows
The Insights > Savings > Savings Drawdowns and Transfers page is an aggregate of shortfall withdrawals, transfers, annuity and real estate purchases, and lump-sum debt payments.
In this chart a transfer may net out with a drawdown from savings. As a result, the total shown in the withdrawal chart does not represent the total cash outflow, but an aggregate of all money flows.
Items on this chart include:
RMDs: Automated withdrawals for Required Minimum Distributions (RMDs) based on the withdrawal strategy modeled in My Plan > Money Flows
Roth Conversions: Roth conversions (these are shown as transfers) in My Plan > Money Flows
One Time Expenses: One -Time Expenses entered in My Plan > Expenses
Annuity Purchases: Future annuities modeled in My Plan > Income
Real Estate Purchases: Future real estate purchases modeled in My Plan > Home and Real Estate
Transfers: Transfers entered in My Plan > Money Flows.
The Boldin Planner automatically funds expenses and events in your plan using income and savings withdrawals.
There are 3 terms used for savings withdrawals:
Net Savings Drawdowns is a net figure shown only in the Lifetime Income Projection Insight. It represents the true reduction in account balances for the year after accounting for all income and withdrawals.
Savings Drawdown is not a net figure. It reflects total withdrawals taken during a given year, including withdrawals used to cover income shortfalls, fund one-time expenses, purchase annuities or real estate, or make lump-sum debt payments. Because excess income later in the year may offset earlier withdrawals, this figure does not necessarily represent the actual reduction in account balances.
Shortfall Withdrawal is also not a net figure and a specific subset of savings drawdowns. It includes withdrawals used to fund monthly expenses, events, and taxes in months when cumulative income up to and including that month is insufficient to fully cover expenses. The planner nets any excess income saved later in the year against these withdrawals to calculate the true annual reduction in account balances, which is reflected in Net Savings Drawdowns.
PRO-TIP: Use meaningful labels when you create accounts in your plan so that it is easier to map accounts on the Insights charts.