Cashflow Analysis

Inputs

Modeled after the uploaded sheet: simple inputs on the surface, stronger tax, RMD, and return logic underneath.

Client name

Filing status

Start year

Client age

Project through age

2nd client age

Leave 0 if single-client.

Total investable assets

Annual asset growth

Compounded monthly, matching the source sheet behavior.

Tax on distribution

Only gross-ups negative cashflow asset draws.

Add annual surplus to assets Use 2nd client income streams

Advanced tax, RMD & return engine

The visible inputs stay close to the uploaded report. Open this only when the case needs more realistic taxation, RMD handling, return sequencing, or Monte Carlo.

Tax engine

Federal mode taxes ordinary income plus taxable Social Security after deductions.

Legacy tax base

Only used by uploaded-report simple mode.

State / local tax %

Optional flat add-on to estimated taxable income.

Income product taxable %

Use 0% for Roth-style tax-free income, 100% for IRA/qualified income.

RMD handling

Uses SECURE 2.0 start age logic and Uniform Lifetime divisors.

IRA / qualified assets

Used only for RMD estimates. Scenario premium reduces this if funded from IRA.

Return method

Keeps the report simple until sequence risk matters.

Monte Carlo mean %

Expected annual return for simulated paths.

Monte Carlo std. dev. %

Annual volatility assumption.

Monte Carlo paths

Capped internally for browser performance.

Monte Carlo seed

Keeps results repeatable for review.

Custom annual return sequence %

Sequence mode applies these annual returns in order, then repeats the last entered return.

Client 1 income

Monthly amount, annual increase, start age, end age.

Income source	Monthly	Annual increase %	Start age	End age
Salary
Social Security
Pension #1
Additional income

Expenses

Same categories and timing logic as the uploaded input page.

Expense	Monthly	Annual increase %	Start age	End age
Mortgage
Household
Daily Living
Healthcare
Transportation
Travel & Ent.
Misc.

Income solution scenario

Back premium out of investable assets, then add the generated income as a pension-style line.

Scenario mode

Entered-premium mode mirrors the old workflow. Auto mode solves from the income target.

Amount allocated to income product

This is subtracted from investable assets before projection.

Income start age

The proposed pension-style income begins at this age.

Annual income to solve

Auto mode only. Leave 0 to use the largest modeled gap after start age.

Payout factor %

Example: 4.7 means $4,700/year per $100,000 income base.

Income base bonus %

Applies to the income base for the scenario estimate.

Income increase type

Increasing income compounds the proposed payment annually.

Income increase %

Used only when increasing income is selected.

Funding source

Used for advisor framing. Scenario income flows through as pension-style income.

Cashflow Analysis scope

Answers the advisor question: Do I have an income gap? The base inputs remain spreadsheet-simple; advanced tax, RMD, sequencing, and Monte Carlo assumptions are available only when the case requires them.

Tax2026 federal estimateRMDUniform Lifetime screenReturnslinear / sequence / Monte CarloScenarioasset carve-out + pension income

Income gap diagnosis

Run the analysis.

The output will show the first shortfall, largest annual gap, cumulative gap, floor coverage ratio, and estimated income premium needed to solve the modeled gap.

First active income—Income in

First active expenses—Expenses out

First active cashflow—Net income less expenses

Ending assets—Through selected age

First shortfall—Year / age

Largest annual gap—Worst deficit year

Cumulative gap—Sum of modeled annual shortfalls

Floor coverage ratio—Guaranteed income ÷ essential expenses

Tax, RMD & return engine

The simple report stays intact, but the output now shows when taxes, RMDs, or sequence assumptions are changing the answer.

Tax engine—Federal / state estimate

First RMD—Qualified account estimate

Total taxes—Federal + optional state

Return model—Linear, sequence, or Monte Carlo

Income solution scenario

The scenario backs the selected premium out of assets, creates a pension-style income line, then reruns the projection.

Asset allocation—Removed from investable assets

First-year income—Added as proposed pension income

Base premium without bonus—Shows the bonus effect

Gap covered—Against largest modeled gap after start age

This is a screening estimate, not a carrier illustration. Use actual product tables, income rider terms, taxation, liquidity, and compliance review before presenting a recommendation.

Base plan vs income solution

The comparison will show whether repositioning part of the portfolio improves the income gap enough to justify the lower liquid asset base.

Proposed income—First-year pension-style income

Remaining liquid assets—Initial investable assets after allocation

Gap reduction—Change in cumulative gap

Ending asset tradeoff—Proposed minus base ending assets

Metric	Base plan	With income solution	Change

Base vs proposed income timeline

Net income and expenses share one scale. Dashed lines show the proposed income-solution scenario. Assets are shown on a separate trajectory scale.

Base net incomeProposed net incomeTotal expensesProposed income productRMDAssets

Stress test

A quick sensitivity screen so the answer is not falsely precise.

Scenario	First shortfall	Largest annual gap	Cumulative gap	Ending assets

Monte Carlo / sequence check

Switch the return method to Monte Carlo or custom sequence in Advanced Engine when linear returns are not enough.

Base success—Ending assets above $0

Proposed success—With income solution

Base median ending—10th / 90th percentile

Proposed median ending—10th / 90th percentile

Year	Age	Guaranteed Income	RMD	Taxable SS	Gross Income	Taxes	Net Income	Essential Exp.	Lifestyle Exp.	Total Expenses	Annual Cashflow	Total Assets

Model scope: Advisor-ready answer: income in, expenses out, gap identified, solution scenario modeled. This is a cashflow screen. The default tax engine estimates 2026 federal taxable income, including taxable Social Security, standard deductions, senior deduction assumptions, and optional flat state/local tax. Uploaded-report simple mode remains available for reproducing the source workbook behavior. The “tax on distribution” input is used to apply a distribution drag to negative cashflow draws from assets, matching the source workbook behavior. Steady returns compound monthly to match the source sheet, while advanced mode can use a custom annual return sequence or repeatable Monte Carlo paths. The income solution scenario is a high-level illustration. It subtracts the modeled allocation from investable assets and adds the generated income as a pension-style stream; it must be replaced by actual carrier illustrations before use with clients.

Size protection →Review annuity option →Coordinate Roth conversions →

Disclosures

Inputs

Client 1 income

Client 2 income

Expenses

Income solution scenario

Cashflow Analysis scope

Run the analysis.

Tax, RMD & return engine

Income solution scenario

Base plan vs income solution

Base vs proposed income timeline

Stress test

Monte Carlo / sequence check