Lump Sum Accounts
Contents
Lump Sum accounts are cash lump sums, including sale of property or a life insurance settlement.
Accounts may be added or deleted by clicking on the corresponding button at the top of the editor.
The prompts are discussed below.
Account
Account Name
Enter the name associated with the account. This must be unique for the accounts.
Distribution Event
Values entered here relate to the distribution of the account.
Type of Event
Select the type of event. The values include:
Client's Age
Date
Years after Client's Retirement
Client Life Expectancy
Spouse Life Expectancy
Event Value
Based on the value selected for Type of Event, enter the corresponding value. If a value does not need to be entered (such as client's Life Expectancy), the field is not selectable and an N/A appears.
| Warning: | If the event does not occur during retirement, the lump sum distribution will not be accounted for. For example, if a client retires at 65 years old (but after their birthday), and an age value of "65" is entered (which would be their birthday), because the event occurs before their retirement date, the lump sum will not be credited to their income in retirement. |
If the event occurs before retirement starts or after life expectancy, a message will be displayed right below the account name.
If the Event Occurs Prior to Retirement, Move it to the Start of Retirement
If the event occurs prior to retirement this will automatically move the lump sum distribution to the first month of retirement. This can help resolve problems if the client's retirement age is moved later but the lump sum event should still be considered for retirement income.
Distribution Value
Current Value
Enter the current value of the lump sum payment.
Annual Increase
Enter the annual increase, if any, in account value.
Calculated Values
This group box displays the calculated Event Date and Value at Event for confirmation.