Section 1 -- Overview of your current debts in VeriPlan

VeriPlan automatically calculates annual interest and principal payments on up to 25 of your currently outstanding debts. It will continue to deduct interest and principal payments from your projected annual cash flow for as long as the unpaid principal on these debts would remain. These debts could include mortgages, lines of credit, bank loans, student loans, revolving credit arrangements, credit card, or other types of loans.

VeriPlan also provides an opportunity for you to project the impact of accelerating the repayment of any particular debt or debts by choosing a higher monthly payment. VeriPlan will automatically shift your positive earned income cash flow toward accelerated debt repayment and away from additional cash, fixed income, or equity investments. This allows you to test the overall impact of accelerated debt repayments within the full lifecycle context of VeriPlan’s projections about your future income, expenses, assets, and taxes.

People usually consider the question of accelerating debt repayments, when they expect to have sufficient current net income or cash flow to cover such accelerated debt repayments. VeriPlan does not require this. It can also automatically project the financial impacts of your regular required or accelerated debt repayments over years of both positive and/or negative cash flow before debt payments.

If your projected cash flow in any projection year would not be sufficient to meet either your required or accelerated debt repayment strategy, then VeriPlan’s would liquidate projected assets. To cover these debt repayments, it would automatically liquidate some of your future financial assets in proportion to your chosen asset allocation.

You do not need to be concerned about possible future debt requirements, because VeriPlan will automatically project any negative financial asset situations whenever your cash, fixed income, and equity assets are projected to be exhausted. Such situations would arise when your cumulative expenditures and taxes exceed your cumulative earned, asset, and other income. For more on this subject, see the orange-tabbed '10-Future Debt Tool' worksheet, which explains how VeriPlan develops your projections, when your financial assets become inadequate.

VeriPlan will also automatically project that future assumption of tax-deductible mortgage debt related to your planned FUTURE purchase of a first or second home. Through the orange-tabbed '9-Home Purchase Tool' worksheet, VeriPlan automates the lifecycle planning process associated with future residential home purchases.

When you use the '9-Home Purchase Tool' worksheet, you will make entries about your planned home purchase on the '9-Home Purchase Tool' worksheet. In addition, you will make entries about any associated planned future mortgage in the debt table below in Section 2. Please refer to the '9-Home Purchase Tool' worksheet for an explanation of how this '5-Your Debts' worksheet interacts with the '9-Home Purchase Tool' worksheet.




_________________________________________________________________________

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