Back | Next

Investor's CalcStation Process

Typical household Income and Expenses are entered gross or net @ Budget with the balance going to or taken from an Asset titled Savings.

Savings' growth rate is determined by the Default Earnings Rate entered @ System Setup @ the Main Window.

Assets are entered @ the Assets tab with Growth @ and Income @ options.

If Income @ is entered @ the Assets tab, the income will be added as an income entry @ Budget/Income.

In any period, when Expenses exceed Income, prior Savings will be applied to balance the budget.

In any period where the balance of Savings is not sufficient to cover a period shortfall, the amount will appear in the Shortfall column indicating that action needs to be taken.

There are three basic action options:

• liquidate an inflation adjusted portion of Assets at the time or the shortfall.
  
  
• Go back into Budget and either increase Income or reduce Expenses.
  
  
• Transfer an Asset(s) into a higher income producing investment.

Duplicate Investor Account

The best way to modify an existing investor account to test various modification possibilities is to make a copy of an existing account @ the Main Menu by highlighting an account and then by clicking on the Duplicate Icon; the one between the Create Icon and the Delete Icon.

Investor's CalcStation Data Entry

Sidebar: Budget entries are entered for the number of years, Start Period and End Period, that they will occur; for example, Income, $100,000, Start Per. 1 and End Per. 20; therefore, annual income of $100,000 will appear in each of the selected years.

• Asset entries are entered for the number of years, Start Period and End Period, that an Asset is to be held; for example, Rental Property, $100,000 Rental Property, Start Per. 1 and End Per. 20; therefore, the Rental Property will appear as a holding until the End Per. when it is assumed that the Asset, Rental Property will be sold.

Click on the Budget tab to open the Income and Expenses entry Window.

• Budget entries are not required.
• The user may list Assets only.
• Entries may be gross and/or net.
• Click on the New icon just to the right of Infl.% to add a new entry.
• Highlight and double-click on an existing entry to modify it.

Enter the Description, the Amount, # Units; the number of times during the year: mortgage, 12 Units, Taxes, 1 Unit.

Enter the Start Period, the first period the Income will occur and the End Period.

If the End Period is not selected, the longest period used for any entry will be used.

If you want to Exclude an entry from and analysis, check the Analysis or Analyses that you want to exclude the entry..

When Assets, such as rental property, have income entered for them @ Income @ the Asset Entry Window, the income is automatically entered into Income @ Budget.

When an Asset is added or sold, the user has the option @ the Asset Entry Window to have a Buy come out of Savings and the proceeds of a Sell into Savings.

Again, The period net of Income minus Expenses is stored as an Asset; Savings.

Again, Savings growth is compounded monthly using the Default Earnings Rate entered @ Setup.