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Overview of the "8-YOUR BONDS" worksheet

Subject: Overview of the "8-YOUR BONDS" worksheet
by The Skilled Investor on May/14/2007 21:48:28

Overview of the "8-YOUR BONDS" worksheet

Use this '7-Your Bonds' asset worksheet to enter information about your bond and fixed income assets into VeriPlan. These assets would include corporate and government bonds, bond funds, and equivalents, including hybrid funds with a fixed income emphasis. VeriPlan collects information below on up to 24 different bond and fixed income positions that you may currently hold. You can change and update any of this asset information at any time and automatically run new projections.

Suppose that you have an account with a total valuation of $50,000, which is a mixture of $10,000 in cash assets, $25,000 in bonds or fixed income assets, and $15,000 in stocks or equity assets. You should enter ONLY the $25,000 in bonds on this worksheet. The $10,000 in cash assets would be entered on the yellow-tabbed '6-Your Cash' worksheet, and the $15,000 in equity assets should be entered on the yellow-tabbed '8-Your Stocks' worksheet.

Do not enter your private and relatively illiquid bond positions. Alternatively, non-market traded bonds should instead be entered on the '10-Your Other Assets' worksheet. Such bonds and other fixed income assets have uncertain current value or may be subject to restrictions on sale. VeriPlan will project values for these other bond assets separately and will not include them in the deposit-withdrawal-tax-rebalancing logic that it applies to market traded cash, fixed income, and equity assets. Your other assets are treated separately, because they may be subject to substantial tax and liquidation constraints and may have a much less certain current valuation.

VeriPlan collects specific information on each of your asset positions about size, value, taxability, investment costs, and expected distributions. Because VeriPlan will project each of your holdings separately and will calculate returns, volatility, taxes and costs accordingly, the more accurate your inputs, the more informative the results can be to you.

Internally, VeriPlan will maintain this information separately for each individual holding throughout the lifecycle projections. This detailed accounting approach allows your overall portfolio tax-efficiency and investment-efficiency to be calculated for each year of any projection -- even though the net valuation of your individual holdings may change at different rates because of differences in investment returns, costs, and taxes. By avoiding the use of averages, VeriPlan provides much more insight into your particular circumstances.




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Demonstrating a comprehensive projection for a professional couple with children, the VeriPlan tutorial can help you to understand what VeriPlan can do. Use this link to download a free copy of the VeriPlan tutorial file:

Download the Free VeriPlan Tutorial Now