The purpose of this report is to demonstrate how money is moving in and out of the major buckets in the plan, as well as to show the randomized returns for each year. Like all of the cash flow reports, this is focused on the simulated path that results in the 50th percentile ending portfolio value.
What does each column on this report mean?
Year - Every year of the plan from today to the end of the plan
Age - Client and co-client age in every year of the plan
Beg. Portfolio Value - Combined value of all accounts, at the beginning of the year. In other words, it is the Cumulative Wealth value (i.e., Ending Portfolio Value) from the previous year. This sums all investment accounts, cash value FIAs, and cash value IULs. It does not include any GIA or IUL payouts
Total Inflows - From the Inflows report. This is the sum of all inflows for a given year. It’s critical that this column matches the Inflows report.
Total Outflows - From the Outflows report. This si the sum of all outflows for a given year. It’s critical that this column matches the Outflows report.
Taxable Accounts (All non-FIA accounts in the taxable category)
Excess Income - The amount of excess income generated in a given year. This is not a running balance of the Excess Income bucket, but rather, the amount of excess income earned in a year
Contributions - The net Contribution amount into the Taxable bucket in a given year.
Gross Distribution - The gross distribution (i.e., distribution + capital gains taxes) from the Taxable buckets (including Excess Income)
Pre-Tax Accounts (All non-FIA accounts in the pre-tax category)
Contributions - The net Contribution amount into the Pre-Tax bucket in a given year.
Gross Distribution - The gross distribution (i.e., distribution + income taxes) from the Pre-Tax buckets
Tax-Free Accounts (All non-FIA accounts in the pre-tax category)
Contributions - The net Contribution amount into the Tax-Free bucket in a given year.
Gross Distribution - The gross distribution from the Tax-Free bucket.
Accumulation FIAs (Accumulation FIAs + RILAs, regardless of tax category)
Contributions - The net transfer and/or contributions into all FIAs/RILAs in a given year
Gross Distribution - The gross distribution from all Accumulation FIAs in a given year, across all tax categories
Guaranteed Income Annuity (All GIA’s, regardless of tax category)
Contributions - The net Contribution amount into the Pre-Tax bucket in a given year.
Gross Distribution - The gross distribution (i.e., distribution + income taxes) from the Pre-Tax buckets
Tax-Free Accounts (All non-FIA accounts in the pre-tax category)
Contributions - The net Contribution amount into the Tax-Free bucket in a given year.
Gross Distribution - The gross distribution from the Tax-Free bucket.
Accumulation FIAs (Accumulation FIAs + RILAs, regardless of tax category)
Contributions - The net transfer and/or contributions into all FIAs/RILAs in a given year
Gross Distribution - The gross distribution from all Accumulation FIAs in a given year, across all tax categories
Cumulative Wealth - The ending value of all buckets for the given year