The above table shows just how your various assets will grow out over time, based on the growth assumptions you have chosen.
When integrated with your Cash Flow Projections, your future asset picture probably won't look so good. Remember, once you are retired, you will need to be relying more and more upon your assets to generate income. If you have income shortages, you will most likely need to liquidate assets.
While you can build a template in Excel to work through these calculations, there are other factors that you must take into consideration. Which assets will you tap into first? Your Qualified Plan Assets? Non-qualified Assets? While you can, for the sake of an easy solution, lump all of your assets together and just liquidate the pool of assets systematically, this is not the best solution. Since an important planning goal should be minimizing taxes in retirement, you might want to be more careful about how asset liquidations are performed and how much tax you will be paying.
Learning about the Tax Buckets and how to structure your tax buckets might be an important part of your tax planning strategy. See more about Tax Buckets in the Income Tax Section.
