Future cashflow

Open Future cashflow from the portfolio's menu. With a saved future cashflow projection, Saved future cashflow projection names who it covers, such as Daniel Mitchell and Emma Mitchell. Edit the settings opens the steps. Continue and Back move between them, and Cancel leaves the saved future cashflow projection as it was.

1. Who is in the projection: tick one or two people with a recorded age. For each, Work income ends at age and a Cash account, or Automatic selection. With two, each one's Share of household spending, which must total 100%. Then Annual household spending when work income ends, for everyone in the future cashflow projection, and Projection years after work income ends. The Mitchells spend $120,000 a year, half each, for 25 years.
2. Cash and super assumptions: the Expected gross bank interest rate, 4%, and a Cash reserve, $15,000, kept in each person's cash account. Where super or an SMSF is included, a tick, Treat super and SMSF benefits as tax-free cash after age 60, which assumes they come from taxed sources. Included accounts and cash routing lists what each person draws on. For the Mitchells, that is four sources: each one's half of the Mitchell offset, and their member balances in the fund, $658,000 and $779,000.
3. Sale and wind-up assumptions: the Investment selling cost for shares, 1%, how each company's final cash is shared, whether a trust's final cash follows its beneficiary shares, and Replacement rent after the home settles, $4,000 a month. Custom property timelines and Recorded property settings follow. Section 2 explains them.
4. Economic assumptions: Income growth, Rent growth, Spending inflation, Property expense growth and SMSF expense growth, each 3%. Net super return 6.5%, Net investment return 6%, Average weekly earnings growth 3.5% and CPI change 2.5%. Email me when the result moves sits here too.

The last step's button is Calculate and save. It saves it and shows its outcome. The future cashflow projection starts when the last person's work income ends: 1 July 2033 for the Mitchells, so their 25 years run to 30 June 2058.

The future cashflow projection builds options from your records and compares up to four.

• Keep everything keeps every asset, company, trust and SMSF.
• Sell the rentals, keep the home winds up companies, trusts and SMSFs, sells the rentals and keeps the home. A new future cashflow projection names it Sell investments, keep the home. It needs the people in the future cashflow projection to own the home directly. Otherwise the page shows Keep-home option unavailable.
• Sell everything, then rent winds up companies, trusts and SMSFs, sells everything, and pays the replacement rent from settlement. Household spending must exclude that rent.
• A custom timeline sets the age at which each property sells, and whose age it is. Add custom property timeline adds one. A property owned by a company or trust must sell by the time the household's work income ends, and an SMSF's by the fund's age 60 wind-up.

Recorded property settings lists each property's sale dates, selling cost and main residence treatment, from its property record. For the Mitchells, every sale signs on 1 July 2033 and settles on 31 July 2033. The rentals cost 2.5% to sell, and the home 2%, with a confirmed full main-residence exemption.

The page leads with the Closing net position of the first option you saved, and when its cash runs out. For the Mitchells it shows Keep everything, $32,905,348 and Never.

The answer reads: each of the three options keeps cash to the end of the projection. Where an option runs out, the answer gives the date and how far its cash is short of the spending entered over the future cashflow projection, its funding gap Cumulative funding gap The spending over the whole future cashflow projection that its cash and funding sources could not meet. .

• Closing net position is what the portfolio owns less what it owes when the future cashflow projection ends. It includes company, trust and SMSF positions, which are legally separate, so not all of it can be spent.
• Cash runs out Cash runs out The first day a participant's cash is below $0 after the month's top-up from their included accounts. Top-ups happen on the first of each month, so this date is always a 1st. The yearly figures at 30 June can still show cash above $0 after it. is always a 1st, the day of the monthly top-up.
• Option settings gives each option's investment selling cost and replacement rent.

Show each option opens Option settings and Option outcomes, every figure for every option. Cash when work income ends is $2,123,645 under all three. Closing funding assets is the cash and the super and investments the future cashflow projection draws on, when it ends.

Keep everything ends with the least cash but the most property, $13,401,458 of closing property equity. Sell everything, then rent ends with $10,175,591 of funding assets and no property. Property equity is not future cashflow explains why a large net position can still run short of cash.

Closing cash, each option draws each option's closing cash at each 30 June. Show each option year by year shows one option at a time: press its name above the charts. Its charts are Cash, equity and net position, Yearly cash and tax, and Cash by participant. Appendix A, reached by See Appendix A: every year, lists that option's years, one legal owner at a time, and an option that sells adds Property sales.

Armadale's $660,000 grows 5.5% a year to the contract date. Download PDF prints every option. A Business account can also send it to the client.

How old the first person in the future cashflow projection is when cash runs out, if every asset, company, trust and SMSF is kept. If cash lasts to the end date, it is their age on that date. It is their work income end age plus the whole years from when work income ends until cash runs out, or until the future cashflow projection ends. Where cash runs out before work income ends, the years run to the first projection year from when work income ends that ends with cash below $0.

The Mitchells' cash lasts to the end date, when Daniel is 87: his work income ends at 62, and the projection runs 25 years with cash left. Cash lasts to age shows in Since last run, and Purchase uses it to say what a purchase does to the future cashflow projection. Cash when work income ends Cash when work income ends The participants' bank and offset cash when work income ends, keeping every property and asset. is the other measure the future cashflow projection is watched by.

The future cashflow projection starts from your records as they stand: legal owners and their ages, income, living expenses, properties with their rent, costs and sale settings, loans, cash, super and SMSF balances. It models nothing you have not recorded. Actual spending and returns may differ from the future cashflow projection.

Every option includes the estimated income tax, and the sale options the estimated CGT on each sale. Property tax and CGT estimates explains them. What you can reach, and when sorts super, cash and property by when a household can reach them.

Household cashflow and cash over time shows the next ten years of cash. Check a result opens the working behind each figure.

The future cashflow projection's inputs are saved, and its results are worked out each time you open the page. If you edit it without calculating it, Future cashflow projection inputs changed asks you to calculate it again.

When the result moves, in step 4, has one box: Show it in the monthly update when the outcome moves, or the clients update on a Business account. With it on, the saved future cashflow projection is run again each month, and the update says so when drift Drift A move since the future cashflow projection was saved: the age cash lasts to by a year or more, or cash when work income ends by ten percent or more. appears. Records that need a newer figure explains the update.

• While the future cashflow projection is watched, Since last run shows under the future cashflow projection: Future cashflow projection saved, Cash lasts to age and Cash when work income ends. A figure that moved also shows what it was.
• Changed since the future cashflow projection was saved lists the records written since, each linking to its page.

• A record the future cashflow projection needs shows with the action that fixes it. A person with no age reads Record an age on this legal owner first.
• A step that is not complete says what to fix, such as Household spending shares must total exactly 100%.
• Complete investment cost bases before wind-up names an investment that cannot be sold until its purchase date and full cost base are recorded.
• Select every SMSF member shows when a fund member is outside the future cashflow projection, as the fund cannot wind up without them.
• Remove one custom timeline shows when a future cashflow projection holds more than four options.
• If the future cashflow projection cannot be worked out, the page says to review the inputs and records. Review inputs goes back to step 1.