Need Analyser - Using the Need Analyser to run liquid assets down to zero by mortality

Q. How much more can my client spend each year to run their liquid assets down to zero by mortality?

A. Run the Need Analyser (Regular Savings) in reverse to determine how much more can be spent such that the client ends up with nothing at mortality. Select the Need Analyser simulation on 'Let's See' chart, tick 'Annual Savings,' and choose 'Mortality as the goal event.

The result after clicking 'Calculate Need' (a negative £ figure) is the greatest amount of additional year-on-year expenditure that will *not* give rise to a shortfall in any single year of the plan. This is how much additional the client can spend over and above what is already in the plan to exhaust the liquid assets. To test the results, simply add a 'Spend Down' expense to the plan that is the figure generated from the simulation. Be sure to set 'Inflation' to 0% (as the result is a 'static' value that does not increase with inflation). Go to the 'Let's See' chart, select 'Liquid Assets,' and verify the results, i.e., there 0 assets showing in the last year of the plan. Entering a larger amount will show the liquid assets running out in an earlier year.