The What-If (Proposed) Detailed Report is just like the Baseline (Present) Detailed Report, except it takes into account the What-If Buys, Sells, Refinances, and New Loans that you have recommended.
This report is actually several reports combined into one.
Lines 1 - 6: Taxable Income: This section includes every item that increases taxable income with the taxable gross.
Lines 7 - 20: Income Taxes: This section includes every item that will decrease taxable income, including adjustments, deductions, exemptions, and credits. It displays Table Tax and AMT and shows the dollar figure in preference items before AMT kicks in.
Lines 21 - 28: Cash Flow: In Line 21, MasterPlan totals every item that increases cash flow. Lines 22 - 27 display the totals of all the taxes, expenses, payments, and investments. Line 28 displays the difference. Notice that MasterPlan calculates the FICA and Medicare taxes in this section.
Lines 29 - 31: Liquidity: How much cash do your clients have; in other words, how liquid is their situation? Line 29 displays the running total of the annual surplus cash or shortage.
Lines 32 - 33: Retirement Plans: This section illustrates how they are doing in terms of retirement.
Lines 34 - 35: Net Worth: This section displays every item that increases or decreases Net Worth and then discounts the Net Worth by inflation.
Although most of the report is self-explanatory, we have included some detailed descriptions of some lines to help you fully appreciate the diagnostic qualities of MasterPlan. Jump to the Baseline Detailed Report Section to read these explanations.
Prior to viewing this report, you might find it helpful to click the Cash Flow button at the bottom of the Overview window. This little window displays the value of each asset or liability at the end of the first year of the projection and how the item affects cash flow.
Scroll down past the present projection to the what-if projection. We will display the amount of money released by each sale, by each refinance, and the amount of cash available before MasterPlan attempts to purchase the recommended assets.
If the buy did not happen, you can probably see immediately the reasons. Perhaps there was not enough surplus cash. Or perhaps the combination of the minimum buy-in amount and the % of available cash you allocated to the buy were too restrictive.