How do I model the sale of property?

Property assets displayed in the net worth statement are purely informational, ie: they will not affect the plan success rate or cash flow table in any way. As a result, the sale of a primary residence or any other real estate should be modeled as a one-time Contribution to the account the proceeds are being added to.

  1. Click on, or create the account you want to add the funds to. If you are adding the contribution to a new account, both the Account Value and Cost Basis should be zero. When the contribution occurs  the cost basis of the account will automatically be updated.
  1. Click the “Add Contribution” button. Remember: this can be done within an existing plan, or within the plan wizard for a new plan.
  1. Add the expected proceeds from the sale in the net contribution field ($400,000). Remember that contributions are a net figure, and should be inputted accordingly. 
  1. Input the start and end date in the year you expect the sale to occur.
  1. Add inflation to model the amount you expect your contribution to increase by, or, if you want to keep the “Net Contribution” value the same, simply input a zero for the inflation rate.

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