Wealth Planning Lab

Institutional planning workspace for retirement cashflows, Monte Carlo confidence, guardrails, tax buckets, goals, and risk/return probabilities.

Planning setup

IPS-style household statement: income, expenses, balance sheet, constraints, and dated cashflows.

Foundation + Pro

Life horizon & IPS constraints

Risk profile is a capital-market preset: changing it updates expected return and volatility before the simulation runs.

Employment income & current spending

Income until retirement

Current expense run-rate

ExpenseAnnualRetirement
Housing excl. mortgageRent, maintenance, HOA, utilities
LifestyleRestaurants, services, subscriptions
Food / groceriesRecurring household consumption
HealthcarePremiums, care, medication
Taxes / insuranceProperty tax, home/auto insurance, liability coverage
TransportCars, fuel, transit, maintenance
TravelRecurring travel budget
Education / tuitionUse dated cashflows when it has an end date
Family supportDependents or parent support
Charity / givingRecurring donations
Other recurringRecurring items not listed above
Mortgage debt serviceModeled separately through balance sheet payment and end age
24,000Until age 70
Gross earned income$180,000
Current expenses$110,000
Derived annual savings$70,000

Household balance sheet

Liquid; counted toward IPS reserve
Brokerage / liquid taxable investments
Traditional retirement accounts
Roth / tax-exempt assets
Current home equity $250,000
Mortgage scheduleAnnual payment includes principal and interest. The model infers the payoff curve from balance, payment, and end age.
Business, alternatives, collectibles, receivables
Subtracted from net worth and final estate value; mortgage is modeled separately under the home.
Investable assets$825,000
Home equity$250,000
Estimated net worth$1,175,000
Need-based trigger
Trigger
Need-based only. 80.0 means 80.0% portfolio coverage, not age 80.0.
Transaction assumptions
Home equity today$250,000Included in net worth, not investable assets.
Modeled release$0Only enters portfolio when liquid-portfolio coverage falls below this percent.

The model projects home value using home appreciation, estimates remaining mortgage at release age, subtracts sale costs and the residence value you want to preserve, then invests net proceeds into the portfolio. In Need-based mode, portfolio coverage means liquid portfolio divided by estimated future withdrawal need; 80 means sell/downsize only if coverage falls below 80% after the release age. If it never triggers, the home stays in the final estate composition rather than the portfolio path.

Retirement spending

Carried expenses$86,000
Total spending target$96,000
Portfolio draw need$61,000

Portfolio draw need is not a deficit. Retirement spending, including extra annual spending, is CPI-indexed; current income and retirement income are held fixed unless modeled separately as dated CPI-indexed cashflows.

Dated cashflow events

NameTypeStartEndAnnual amountIndexed

Market assumptions & simulation engine

Return haircut, also called tax drag, is percentage points per year subtracted from portfolio expected return. Example: 0.5 means a 7.0% return is modeled as 6.5%. It is not a 0.5% tax rate on assets or income.

Retirement spending guardrails

Weak pathCut spending 10.0%Never below 85.0% of starting spending.
Strong pathRaise spending 5.0%Never above 120.0% of starting spending.
Help: spending guardrails
What this controls
An optional dynamic withdrawal rule. It adjusts discretionary retirement spending in the simulation; it does not change salary, balance sheet values, or market returns.
When it reacts
If a path becomes weak, spending is cut by the configured cut percentage. If a path becomes strong, spending can rise by the raise percentage.
Maximum limits
Max reduction and max increase cap spending versus the CPI-indexed starting policy. A 15% max reduction means spending cannot fall below 85% of that year's inflation-adjusted retirement spending target.
When to disable
Disable this if retirement spending is mostly fixed and you do not want the model to assume lifestyle cuts or raises.
Policy benchmark 85.0%
Monte Carlo confidence
PLAN PASS RATE
N/A
Policy target 85.0%
Net worth today
BALANCE SHEET
N/A
Investable N/A | Home equity N/A
Free cash flow
CURRENT YEAR
N/A
Income minus N/A expenses
Cash runway
EMERGENCY RESERVE
N/A mo
Policy target N/A mo
Median ending wealth
SIMULATED AGE --
N/A
P10 downside N/A
Retirement draw check
FIRST-YEAR PORTFOLIO DRAW
N/A
Planned draw N/A

Integrated wealth path

Monte Carlo median, P5/P10 downside, and annual policy contribution/draw bars.

N/A paths

Run planning lab to populate the integrated wealth path.

Scenario lab

Base case plus return, inflation, crash, longevity, and lifestyle shocks.

Run planning lab to populate scenario stress tests.

Action plan

Ranked diagnostics against the internal planning policy benchmark.

Run planning lab to populate actionable diagnostics.

Asset tax map

Portfolio buckets plus residence equity and other assets; liabilities are handled in estate composition.

Run planning lab to populate account composition.

This is a capital-location snapshot. Residence tax treatment is conditional on sale, holding period, exclusions, jurisdiction, and estate structure; taxes are not optimized here.

Estate composition

End-of-plan patrimony split between portfolio assets, residence equity, and other assets.

Age N/A

Run planning lab to populate final estate composition.