How to Schedule Planned Withdrawals from a Savings Account or Investment
1. First add an event to your timeline to schedule the year in which these withdrawals are to begin.
This is only necessary if an appropriately timed event isn’t already present on the timeline. A single event could be used to schedule withdrawals from multiple accounts, provided they are to begin in that same year of the plan.
Note: In most cases planned withdrawals are scheduled to begin using events; however, stages also could be used. A planned withdrawal could be scheduled to begin at the start of a given stage - e.g. at the start of the Retirement stage.
To add this event either:
- Go to the Time screen to drag and drop an event icon over the appropriate year/age in the timeline;
- Or find the Time panel located on all of the data entry screens (the Savings screen for example), select the Event tab, click the New Event button in the bottom-right corner of the tab, and enter the name, age, and owner of the event.
2. Next, go to the Investments or Savings screen and in the ledger on the right side of the screen, select the account from which the withdrawals are to be made.
3. Expand the Advanced Settings > Liquidation Limits and Planned Withdrawals panel.
4. Select the Planned Withdrawals button.
5. Next to the Yearly Draw Down Amount, enter the amount that is to be withdrawn from the account yearly or select "Maximum" to withdraw everything in the account.
6. In the Start Draw Downs drop-down menu, select the event from the timeline added earlier.
7. Next to Total Withdrawals Limit, leave the "Limit to Draw Down" button selected or select Maximum, which will allow the software to take up to the maximum available, above and beyond the planned withdrawal amount, only when needed to fulfill expenses.
What happens to funds after withdrawals are made from an account?
Following withdrawal, these funds will flow into general cash where they will first be made available to cover expenses and make scheduled contributions to other accounts.
Any funds remaining may be considered spent with other unallocated habitual income or will be deposited into the owner(s) dedicated cash account (e.g. John’s Cash), until needed later to fulfill expenses or unless swept or transferred into another account. Read more >>
Can planned withdrawals and liquidation limits be increased, decreased or ended later in the plan?
The settings you enter on the Liquidation Limits and Planned Withdrawals panel will schedule the initial withdrawals, apart from any ad hoc withdrawals taken by the software to fulfill expenses.
These scheduled withdrawals can later be increased or decreased or ended altogether using the Step Up / Step Down panel, which is also found on the Investments and Savings screens.