Simulation Parameter Reference

Parameter Name	Location	Parameter Mode	Description
Parameter Mode	Setup	N/A	Basic or advanced parameter mode for the simulation.
Current Date	Main/Setup	Basic	Current date in the simulation. This can be "fast forwarded" to a date in the future. Run Setup to configure.
Retirement Date	Main/Dashboard	Basic	Currently selected retirement date used by the simulation. This can be in the past or future.
Default Wage Inflation	Main	Basic	Default wage inflation rate used for Social Security wage indexing and employer income extrapolation. This can be overridden for specific years in the Economy sheet (Advanced).
Default Consumer Price Inflation	Main	Basic	Default consumer price inflation rate used for real to nominal dollar conversion. This can be overridden for specific years in the Economy sheet (Advanced).
Default Annual Return on Stocks	Main	Basic	Default rate of return on stocks. This can be overridden for specific years in the Economy sheet (Advanced).
Default Bond Yield	Main	Basic	Default yield on bonds. This can be overridden for specific years in the Economy sheet (Advanced).
Investment Strategy	Main	Basic	The investment strategy employed by all accounts in the Portfolio.
Marital Status	Main/Setup	Basic	Marital status. Run Setup to configure.
Filing Status	Main/Setup	Basic	Tax filing status. Run Setup to configure.
Initials	Main/Setup	Basic	Initials used to identify and filter on yourself and your spouse in the worksheet.
Core Account Balance	Main	Basic	This is the core account for all non-retirement funds. Excess income beyond expenses are deposited in this account.
Core Account Cost Basis	Main	Basic	Core account cost basis. The balance above this portion is subject to income tax.
Other Appreciating Assets	Main	Advanced	Additional appreciating assets to be added to your Net Worth calculation.
Additional Retirement Income	Main	Basic	Non-taxable annual income with a payment schedule that begins at your SSRIB Primary Benefits Filing Age. It adjusts for inflation up to that date but not beyond. This can be used to simulate annuity income.
State, Local, and Foreign Income Taxes	Main	Basic	State/local/foreign tax approximation (presently only state tax supported). This setting can affect whether Social Security benefits are taxed.
Annuity Payment Terms	Main	Advanced	Life or Period Certain. The annuity is a deferred income annuity until the Retirement Date is reached, at which point the annuitization phase begins.
Annuity Payment Rate	Main	Advanced	Fixed, Variable, or Indexed. The fixed rate annuity balance can increase or decrease inversely to bond yields, where the variable rate annuity balance does not. The indexed annuity is tied to Annual Return Stocks instead of Bond Yield to determine the Assumed Interest Rate.
Annuity Inflation Adjusted	Main	Advanced	Set to TRUE to lower the payments towards the start of the annuitization phase to adjust for inflation.
Annuity Participation Rate	Main	Advanced	The participation rate in the underlying index.
Annuity Rate Ceiling	Main	Advanced	The upper limit on the Assumed Interest Rate.
Annuity Rate Floor	Main	Advanced	The lower limit on the Assumed Interest Rate. No fees are collected once this limit is reached.
Annuity Spread Fee	Main	Advanced	All annuity fees are modeled as a simple percentage which is subtracted from the underlying index to determine the Assumed Interest Rate.
Annuity Survivor Benefit	Main	Advanced	Set to TRUE to include the spouse (joint and survivor annuity).
Annuity Guaranteed Term	Main	Advanced	The guaranteed term of the annuity, required for a period certain annuity. A life annuity can optionally have a guaranteed term as well.
Annuity After Tax Contribution	Main	Basic	Contribution to annuity balance in after-tax dollars as a flat annual amount which is adjusted for inflation.
Annuity Balance	Main	Basic	Present value of the annuity.
Annuity Cost Basis	Main	Basic	Cost basis of the annuity. This determines the taxable portion of annuity payments.
Debt Limit	Main	Basic	Debt limit. Debt above this limit in a given year results in insolvency for that year.
Current Debt	Main	Basic	Current debt on the Current Date.
Interest Rate	Main	Basic	Interest rate on debt.
Birth Date	Main/Setup	Basic	Birth date. Run Setup to configure.
Start Work Age	Main/Setup	Basic	Age used to calculate past years in the workforce for Social Security purposes. Run Setup to configure.
Life Expectancy	Main/Setup	Basic	Life expectancy, which controls number of future years displayed in the simulation. Run Setup to configure.
Dependents	Main	Basic	Number of dependents for tax purposes.
Default Annual Increase	Main	Basic	Amount to add or subtract from Default Wage Inflation or Default Consumer Price Inflation to determine personalized annual increase to income (employer, self-employment, or passive).
DB Pension Start Work Date	Main	Advanced	Start date at current employer to be counted towards DB pension benefit
DB Pension Final Average Earnings Years Used	Main	Advanced	Number of years included in DB pension FAE calculation
DB Pension Benefit Percentage	Main	Advanced	Percent of FAE included in DB pension lump sum for each year of eligibility
DB Pension Payout Option	Main	Advanced	Select a before-tax rollover to the core account (Lump Sum) or the annuity account (Annuity).
Before-Tax Contribution	Main	Basic	Contribution to retirement account in before-tax dollars, either by percentage of income (employer or self-employment) or flat annual amount (adjusted for inflation).
Before-Tax Balance	Main	Basic	Balance in retirement account of before-tax dollars on the Current Date
Company Match	Main	Basic	Company match to retirement account in before-tax dollars as a percentage of income (employer or self-employment).
After-Tax Contribution	Main	Basic	Contribution to retirement account in after-tax dollars, either by percentage of income (employer or self-employment) or flat annual amount.
After-Tax Balance	Main	Basic	Balance in retirement account of after-tax dollars on the Current Date
After-Tax Cost Basis	Main	Basic	Cost basis of retirement account of after-tax dollars on the Current Date
Qualified Distribution Age	Main	Basic	Age at which qualified distributions can be made from the retirement account.
Primary Benefits Filing Age	Main	Basic	Age to file for primary Social Security retirement insurance benefits.
Auxiliary/Survivor Benefits Filing Age	Main	Advanced	Age to file for auxiliary (spousal) or survivor Social Security retirement insurance benefits.
Wage Inflation	Economy	Advanced	Overrides the Default Wage Inflation parameter for specific years. Past inflation rates are shown for informative purposes and are based on the AWI index.
CP Inflation	Economy	Advanced	Overrides the Default Consumer Price Inflation parameter for specific years. Past inflation rates are shown for informative purposes and are based on the CPI-W index.
Annual Return Stocks	Economy	Advanced	Overrides the Default Annual Return on Stocks parameter for specific years. Past rates of return are shown for informative purposes and are based on the S&P 500.
Bond Yield	Economy	Advanced	Overrides the Default Bond Yield parameter for specific years. Past rates of return are shown for informative purposes and are based on the 10-Year Treasury Note.
Employer Income	Income	Basic	Employer income for a full year of earnings. This amount will be prorated automatically for any transitional year. Past and future income will be extrapolated based on the personalized annual increase.
Self-Employment Income	Income	Basic	Self-employment income for a full year of earnings. This amount will be prorated automatically for any transitional year. Future income will be extrapolated based on the personalized Default Annual Increase.
Passive Income	Income	Basic	Passive income for a full year of earnings. Future income will be extrapolated based on the personalized Default Annual Increase. Passive income continues past the Retirement Date.
Pre-FICA Deductions	Income	Advanced	Pre-FICA deductions.
Home Value	Expenses	Basic	Value of primary residence.
Origination Date	Expenses	Basic	Date that the mortgage loan was started.
Original Balance	Expenses	Basic	Original balance of the mortgage loan.
Principal Curtailment	Expenses	Advanced	Amount of mortgage loan principal that has been paid down due to extra payments as of the Current Date
Term	Expenses	Basic	Term of the mortgage loan.
Interest Rate	Expenses	Basic	Interest rate of the mortgage loan.
Real Estate Tax	Expenses	Basic	Property tax portion of mortgage payment.
Home Insurance	Expenses	Basic	Homeowners insurance portion of mortgage payment.
Extra Payment	Expenses	Advanced	Extra payment to be applied as principal curtailment. Although entered as a monthly amount, it is summed and applied as a single lump sum at the end of the year.
HECM Origination Date	Expenses	Advanced	Date that the reverse mortgage loan was started.
HECM Original Balance	Expenses	Advanced	Original balance of the reverse mortgage loan. Enter zero for a future origination date to estimate automatically and generate a lump sum distribution.
HECM Interest Rate	Expenses	Advanced	Interest rate of the reverse mortgage loan.
Living Expense	Expenses	Basic	Living expenses applied during the Accumulation Phase and Distribution Phase.
Tax Deductible	Expenses	Advanced	Tax deductible status of each Living Expense. The 1 and 2 indicate the Retireatee number for tax purposes.