How to Fund an Expense from a Portfolio

Hello everyone. This is an introduction

0:02

to some new features that allow you to

0:05

pinpoint where things are funded in

0:08

pre-retirement from the portfolio. Um so

0:11

by default

0:14

um right now if you put any expenses

0:17

uh in

0:19

pre-retirement that are ongoing, they're

0:22

not funded from the portfolio. They're

0:24

just assumed to be funded from whatever

0:25

other income you have pre-retirement.

0:28

And if it's a one-time expense, then

0:31

it's funded from the portfolio, like

0:33

buying a a house or something. But now

0:35

you'll be able to um actually specify

0:38

whether those things are true. We'll

0:40

still default to that. So if it's an

0:42

ongoing expense, we will default to not

0:44

funding from the portfolio. If it's a

0:46

one-time expense, we'll default to

0:47

funding from the portfolio. But you can

0:49

turn those things on and off. So for

0:51

example, in this plan, I have a bunch of

0:53

things going on. I've got just a $1,000

0:56

a month pre-retirement variable

0:59

expense. Um we have a mortgage

1:04

um payment and a a final payment. Um and

1:08

in each of these what you'll see is for

1:11

example in the other variable expenses.

1:14

Um we now have a right under the amount

1:17

you have this fund expense from

1:18

portfolio in pre-retirement. Um, and the

1:21

way to understand this is if the expense

1:23

happens in pre-retirement, fund it from

1:25

the portfolio, meaning take money out of

1:27

the the portfolio to fund it. We

1:29

probably should add an if here. Fund

1:31

expense from portfolio, fund from

1:33

portfolio if in

1:35

pre-retirement. So, I might add that if.

1:38

Um, so that one is already set there.

1:41

Um, on the

1:43

mortgage, you actually have two places.

1:47

So, you can do the payments

1:50

um fund payments from the portfolio if

1:53

in pre-retirement. Um, by the way, if

1:56

you're doing that, it will go to another

2:00

variable expense. So, there's no way to

2:02

do it baseline if you're funding it from

2:04

the portfolio in pre-retirement. And

2:06

then if there's a payoff early or

2:09

anything like that, you can fund the

2:11

final payment as well. Um, and I believe

2:16

this is going to default to off and this

2:18

one will default to on, but I might need

2:21

to check

2:22

that. And then the last thing we have

2:25

here is this vacation

2:28

home, which I have a planned purchase.

2:31

And since it's a purchase, we can fund

2:33

the purchase fund portfolio if it's in

2:35

pre-retirement. And we've done that

2:38

here. And so you can see that. Um, so

2:42

more improve retirement. We don't retire

2:44

it looks like until

2:47

um

2:49

2031. And we've got, you know,

2:55

$21,39 in other variable expenses. All

2:57

those were the ones I just went over.

2:59

So, you got the mortgage payment and the

3:00

variable expense, and you're taking all

3:02

that from the taxable account. Um, and

3:06

so the next year we're at just just

3:10

under 3.1 million. Um, so essentially

3:14

we've

3:17

um, you know, it's in this case, you're

3:19

not going to notice much of a

3:20

difference, but if we took out those

3:22

expenses, you'd be $21,000 and change

3:25

higher uh than you were otherwise. And

3:28

you'll notice here in 2026, that's when

3:30

we're buying this um, vacation home. And

3:35

so now I have

3:36

221,000 in variable expenses including

3:39

that vacation home purchase and I'm

3:42

taking it all out of the taxable

3:43

account. So now this is a bigger one.

3:45

You we're going to go from about 3.1

3:46

million to 3.03. So again um if we take

3:51

that out you'd see a difference. For

3:53

example, I think in this one all I did

3:55

was said no no I'm going to pay for the

3:57

vacation home out of

3:58

my out of my

4:01

income. And so you can see it's a lot

4:04

higher um balance there. And you can

4:08

also see I'm not

4:10

taking Oh, here it is. So the vacation

4:14

home purchase 170

4:16

197,000 but my portfolio withdrawals are

4:19

smaller uh because I'm not accounting

4:22

for that as a as a portfolio withdrawal.

4:24

Um so that those are all the places

4:26

you'll see them. Again, just to just to

4:28

go over them again. Um if in assets

4:32

other assets if you have a planned

4:37

um purchase then you can fund it in

4:41

pre-retirement. If you have a

4:46

liability then you can fund the payments

4:49

and the final payment from

4:50

pre-retirement. And if you have an other

4:53

variable

4:55

expense, you can fund that.