How to Set a Liquidation Limit on 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. If for example, withdrawals are to be prevented from the very start of the plan, you will use the Start event.
NOTE: A liquidation limit event might also imply that withdrawals are prevented until a given event. For example, if the Retirement event is selected, at which point Maximum withdrawals are allowed, then it is implied that withdrawals are prohibited before the selected event – e.g. until Retirement
Also Note: In most cases liquidation limits are set using events; however, stages also could be used. A liquidation limit 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 on which liquidation limits are to be placed.
3. Expand the Advanced Settings > Liquidation Limits and Planned Withdrawals panel.
4. The Liquidation Limits Only button should already be selected by default.
5. Next to the Yearly Withdrawals Limit, set the liquidation limit either disallowing withdrawals entirely, "Do not allow", or specify a limit using the options provided.
6. In the Start Allowing Withdrawals drop-down menu, select the event from the timeline added earlier.
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.
How to Restore Liquidation Limits to the System Default, Allowing Maximum Withdrawals from Start
1. Go to the Investments or Savings screen and in the ledger on the right side of the screen, select the account on which liquidation limits are to be removed.
2. Expand the Advanced Settings > Liquidation Limits and Planned Withdrawals panel.
3. The Liquidation Limits Only button should already be selected by default. If you have a Planned Withdrawals selected, you may leave it in place.
4. Next to the Yearly Withdrawals Limit, set the liquidation limit to "Maximum", which means the system can take up to the maximum amount available from the account, only if needed, to help fulfill expenses.
5. In the Start Allowing Draw Downs drop-down menu, select the Start event.