Sunday, January 29, 2017

2017 Household Balance Sheet Updates

Saving Your Proforma Scenarios
Heading into the second year of Household Balance Sheet (HHBS) demo template project to provide a better retirement readiness assessment for the general public, Koch Capital has implemented several enhancements available immediately for HHBS demo template subscribers.

Source: Koch Capital

We added the ability to “clone” your current Proforma tab (sheet) if you wish to keep your old proforma data available for point-in-time review. This also comes in handy when transitioning into a new year. You can refer to previous year’s proforma values to set better values for the current year.

Source: Koch Capital

Contingency Asset Planning
This enhancement provides to ability to record a “contingent” future asset, but not have it impact your funded ratio calculation. The two most common types of contingent future assets are possible inheritance and life insurance beneficiary death benefit. It’s an
unexpected windfall that may or may not occur during your retirement. You can now choose not to include these contingency funds in your funded ratio calculation, but still note them in your HHBS demo template for future reference.

Source: Koch Capital

To take advantage of this new feature, go to the Future Savings (Step #10) section of the Proforma tab and enter the expected amount under the expected year in the new Contingency row. The HHBS demo template with create a matching liability entry in the Education & Legacy expense side to prevent this possible windfall from increasing your funded ratio value. On the other hand, if the expected $250k inheritance from example above is a sure thing (lucky you), then enter that value in your regular future savings row (Primary-2035) to be counted in the funded ratio calculation.

New HHBS Dashboard Web App
This new enhancement takes your HHBS demo template data and generates a personalized, one-page financial summary or dashboard of your household’s current ability to fund your desired retirement.

Source: Koch Capital
In the example above, this fully-functional web app runs on your favorite browser or mobile phone as long as you have internet access. If you are a Retirement Planning blog subscriber and HHBS demo template user, and are interested in trying out the new web app, please call me at 925-526-5624 or email me for your custom web app link.

Thank you for your consideration…...Jim   

About Jim Koch
Jim Koch is the Founder and Principal of Koch Capital Management, an independent Registered Investment Advisor (RIA) in the San Francisco Bay Area. He specializes in providing customized financial solutions to individuals, families, trusts, business entities and other advisers so they are better able to achieve their goals. Jim sees himself as an “implementer” of financial innovation, using state-of-the-art technology to provide practical investment management and retirement planning solutions for clients.

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