This article describes the "SAMPLE - Single Family" provided for MaxiFi PRO customers.
Jill, age 55, is divorced and has 2 children, ages 16 & 14. She plans to work several more years and then retire at age 64. She lives in Connecticut and owns her home with 9 years remaining on her mortgage.
Data Review
Click on each menu item at the left under “Profile Dashboard” to review each of the data entry items including housing, assets, special receipts and expenses, and the default assumptions used in the program.
Reading the Report
Begin by running the Base Plan report.
Alternative Profiles
These profiles are variations based on the Base Profile. Each Alternative Profile makes a change illustrating a "what-if" scenario. Typically, an Alternative Profile is compared to the Base Profile. But sometimes (as you will see below) an Alternative Profile starts by duplicating or cloning another Alternative Profile. It is generally most useful to compare this not to the Base Profile, but to the Alternative Profile it was cloned from.
Base Profile - Maximize SS (Social Security)
This alternative plan was created by using the “Maximized Plan” feature under “Reports” and selecting the “Maximize Social Security” option. After creating the report, it was saved as a new Alternative Profile by selecting “Apply Changes” to the right of the Lifetime Discretionary Spending results and then selecting "Apply to New Alternative Profile".
Note: Areas that have changes to the Base Profile in an Alternative Profile are marked with a green flag symbol in the profile dashboard.
Base Profile - Maximize SS and Roth Conv
This alternative plan was created by using the “Maximized Plan” feature under “Reports” and selecting the “Optimize Roth Conversions” option. After creating the report, it was saved as a new Alternative Profile by selecting “Apply Changes” to the right of the Lifetime Discretionary Spending results and then selecting "Apply to New Alternative Profile". This profile can be compared to Base Profile - Maximize SS to see the changes affected by the Roth Conversion recommendations. If you choose to compare this to the Base Profile directly, you will be seeing the combined effects from maximizing social security as well as the Roth Conversion optimizer.
RETIRE EARLY
This alternative plan was created by selecting “Add New Alternative Profile” from the Base Profile Overview Page. We selected Jill's name in the profile dashboard on the left and then changed her "Retirement Age" to age 60. "Retirement Age" is an option that can also be used to determine when contributions to retirement are discontinued.
RETIRE EARLY - Maximize SS
This alternative plan started by maximizing the RETIRE EARLY Alternative Profile above. Next, the maximized report was saved as a new Alternative Profile by using the "Apply to New Alternative Profile" button. While this plan increases Jill’s Lifetime Discretionary Spending, it also results in a $6K-$10 decrease in Annual Discretionary Spending for the next several years. This is due to a cash flow issue described as a Cash Constraint.
RETIRE EARLY - Maximize SS - fix constraint
This Alternative Profile started as a clone of the RETIRE EARLY - Maximize SS profile above. Next, Special Withdrawals from her retirement accounts were added to bring liquidity into the near term from the far term in order to address the cash constraint. You can see this change under “Jill’s Retirement Accounts”< “Current Job 401K”< “Special Withdrawals”. This profile should be compared to RETIRE EARLY - Maximize SS