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New Feature: Financial Wellness Metrics

This article describes the computation for each metric

Nancy Gates avatar
Written by Nancy Gates
Updated over 2 weeks ago

Our Financial Wellness Snapshot can help you gain valuable insight into your financial wellness.

Learn more about the numbers behind your Financial Wellness Metrics below.

Average Retirement Withdrawal Rate

is based upon shortfall withdrawals, RMDs, one-time expenses, and planned distributions such as one time expenses divided by the previous December's savings balance. The average is computed from the retirement age month of second person to retire through the longevity age of the person with the latest longevity.

The average retirement withdrawal rate does not exclude RMDs that are reinvested.

Cash Flow Over Next 12 Months

is based upon all projected income minus all projected expenses, including contributions to savings over the next 12 months.

Current Savings Rate

is based upon total savings contributions / total income for the current year.

Earliest Possible Retirement Date

The calculation rolls back the retirement age one month at a time to see the break point of when you run out of money. This way, you can learn the earliest date you can retire. Selecting to retire at that time may return a low Chance of Success due to the goal of not running out of money as opposed to leaving a legacy.

How to Find the Earliest Possible Retirement Date in Boldin

The Earliest Possible Retirement Date appears in different sections within the Boldin application, depending on your user profile. Here's how you can locate it:

  • Navigate to the Insights > Retirement Chance of Success Report, then scroll to the bottom to find the metric.

  • Check the Financial Wellness Metrics Section, where this metric may also be listed alongside others like Current Savings Rate or Cash Flow Over Next 12 Months.

Troubleshooting Missing Metrics

If the metric does not appear, consider the following possible issues:

  1. Multiple Job Entries: The metric cannot be calculated if more than one job is listed in your financial plan. Consolidating jobs into a single entry might resolve this.

  2. Supplemental Income: Additional work income can also block the calculation. Adjust or temporarily remove these entries if feasible.

Steps to Enable the Metric

To ensure the metric appears:

  1. Review Job Entries: Confirm there is only one listed job in the plan.

  2. Adjust Supplemental Income Entries: Remove or update part-time work or other additional income sources causing conflicts.

Housing Expense as a Percentage of Income

is based upon mortgage payment or rent / total income this year.

Housing Wealth at Retirement

is based upon the value of all properties at retirement age.

Next Month's Cash Flow

is based upon all projected income minus all projected expenses minus contributions to savings for the next calendar month of the forecast, e.g if it is now May, we use the June results.

Retirement Savings Opportunity

is based upon the percentage of your maximum retirement savings contribution limit you have saved in retirement accounts (401ks, 403bs, 457bs and IRAs) for the current year. The calculation divides each user's total projected contributions by their combined annual contribution limits to provide the percentage of the limit that they have fulfilled and surface any opportunity remaining.

Limits used are IRA

$7,000 and $8,000 (after age 50)

401k, 403b, 457

$23,500 and $30,500 (after age 50)

Roth Conversion Opportunity For Maximizing Estate Value

is based upon a run of the Roth Conversion Explorer with the following settings:
* Highest Estate Value Strategy
* Is it okay to pay for the tax liability of Roth conversions with converted funds? NO
* Do you want to retain a minimum amount in after-tax accounts? NO

Savings Rate

is based upon all savings contributions this year / income. The calculation for this metric does not include any Excess Income saved. If your savings rate is lower than you expect, we recommend ensuring that all accounts are entered with the appropriate type (IRA, 401k) to ensure that you're not experiencing incorrect contribution limits. And, all contributions above the annual limit for the account type must be entered as Standard Contributions in the Money Flows section of the planner.

Surviving Spouse Income

is based upon the income for the year after death/ income for the year before death.

Total Debt Ratio

is based upon total debt payments / total income for the current year.

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