Cash Flow Analysis-Chart Tab

The chart represents graphically how Pension Max is calculated.


Note:Colors may differ based on configuration.

An explanation of the chart follows:

1.The light blue line represents the after-tax income the spouse would receive if they selected to take the pension plan's alternative option. The income may increase as the spouse ages because of the retirement plan's COLA.

2.The orange is the income the spouse would receive if the client passed away at retirement, and the life insurance account was annuitized.

Note:In the early years, the income from the annuity will exceed what the retirement plan option would have provided. The excess income should be put in a side fund for later years.

3.The green line is the reserve fund. Its monies are deposited from the annuity in the early years, to be withdrawn in later years as the cost of living increases.

Note:Often there is a drop in the final year of the chart (as shown above). This is because the last year is not a full year, and therefore the monies decrease.

Right-clicking over the grid allows for configuring the chart. The options are:

View 3D

Toggles if the chart is viewed in 3D or 2D.

Note:If the pension plan does not include a COLA, the annuity after tax income line will hide the pension income after tax income line. Viewing the chart in three dimensions will allow seeing both series.

Visible Series

Allows for selecting which series are displayed in the chart. Any changes made will also be reflected in the chart in the printed report.

Chart Left Axis

Determines if the chart displays monthly or annual values.

Bottom Axis

Selects which is displayed for the bottom axis: Retirement Year, Spouse's Age, or Date.