Q - Viewing the Let's See cashflow chart I notice that in certain years of my plan, especially in retirement, the cash inflows are an exact match to my total need, as indicated by the need line. How can this be?
A - Liquid Assets are Used to Supplement Income in the Cash Flow
The software will top-up income from liquid assets automatically, if assets are available, in order to prevent potential shortfalls in the cash flow, provided that you place no withdrawal limits on these accounts. Liquid assets include cash accounts (savings and current accounts), ISAs, unwrapped investments, offshore taxable accounts and in some cases even tangible assets, provided it is not one’s primary residence and that the Liquidation of the asset is set to “when needed”.
This top-up of income from liquid assets can be best viewed by selecting the Let's See Cash Flow chart Details (top right of the chart). The colour coding will indicate the composition of each year's inflows. If you notice inflows from Savings & Investments, these usually indicate ad hoc withdrawals. Note that ad hoc withdrawals are distinguished from planned withdrawals, which are displayed in a different colour.
In years where the total inflows match expenses, the software is drawing funds from liquid assets in order to top off income and prevent shortfalls.