This article describes the withdrawal modeling, chart interpretation, and language used in the Planner to manage and portray the cash outflows, withdrawals, and transfers in your plan.
The Withdrawals chart on the Insights > Savings page illustrates an aggregate of shortfall withdrawals, transfers, annuity and real estate purchases, lump-sum debt payments and other events in your plan.
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 withdrawals and contributions) 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. Keep in mind that 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.
There are two important terms related to withdrawals at Boldin, and those are Savings Drawdown and Shortfall Withdrawal.
Savings Drawdown represents the total amount withdrawn from your savings accounts for a specific year. Savings Drawdowns may include withdrawals made to cover shortfalls, fund one-time expenses, purchase annuities or real estate, or make lump-sum debt payments.
Shortfall Withdrawal represents a specific type of savings drawdown that funds expenses and taxes when regular income sources—such as employment income, Social Security, or pensions—are insufficient. When a shortfall occurs, the planner automatically generates withdrawals based on your selected Withdrawal Strategy and Withdrawal Order.
NOTE: If you are using transfers to employ a specific order of withdrawals in your own plan, you may feel that your plan is "funded" and a savings drawdowns is not necessary. What you will see in the Withdrawals chart is often two transactions:
The transfer(s) FROM your desired account TO an after tax being used to cover expenses.
The shortfall withdrawal(s) from the after tax account.
While you may not interpret your plan as having a shortfall in this situation, in the "language" of the Planner, it is termed a shortfall.
PRO-TIP: Use meaningful labels when you create accounts in your plan so that it is easier to map accounts on the Insights charts.