Addresses the following six problems commonly found in lesser financial planning software:
1. Failure to Account for fees, taxes, and inflation: Net Worth Map™ incorporates YOUR current tax rates and lets you change them for "what-if" analysis. It automatically handles tax impacts of contributions to and withdrawals from traditional and Roth retirement plans and taxable savings accounts. It lets you specify adjustments for fees and dividends that distinguish your investment returns from market indexes.
2. Unrealistic rates of return: Net Worth Map™ analyzes your investments, income, and expenses against 1000 combinations of each 12-month stock and bond market rate of return, and the corresponding CPI inflation rate, that has occurred since 1950. If you prefer, you can even select your own time intervals for "worst case" or "best case" planning. Utilizing actual historical data in this way helps you analyze the possible impact of unforeseen "Black Swan" events in financial markets (like the 1987 and 2008 stock market crashes) on your plan. The impact of these or even more frequent or larger "outlying" events cannot be captured by other planning software that relies on static or normalized economic inputs.
3. Underestimating life expectancy: Net Worth Map™ lets you specify and change your life expectancy, full retirement age, and years as a part-time worker before or after retirement.
4. Social Security benefits not factored in: Net Worth Map™ links to the government's official Social Security Calculator. It lets you specify when you will choose to receive Social Security benefits and adjusts your benefits accordingly.
5. Home equity treatment varies: Net Worth Map™ separates investment returns on stocks, bonds, and other "liquid" investments that can easily be sold to meet daily living expenses from"non-liquid" assets such as Real Estate and home equity for cash flow and investment analysis purposes.
6. Life events are difficult to account for: Net Worth Map™ lets you specify one-time major purchases or recurring, permanent increases or decreases in your income and/or expenses.