1. Asset/liabilities line graph
This page is a graphic illustration of your Balance Sheet, showing your fixed assets, liquid assets, liabilities and net worth.
You may notice that the liabilities line has bumps in it, which indicates that you elected to specify replacing your car periodically. This may be used also to plan for other major projects, such as home improvements, new roof, kitchen, bath, furniture replacement, etc.
A drastic peaking of liquid assets after having fallen to zero, indicates the plan applied an outright sale of the home or the reverse mortgage.
Repeat the planning, changing data on the update page, until the liquid assets stretch out to cover as long a life-time as you anticipate.
2. Income/expense line graph
This page is a graphic illustration of your Income Statement, showing your income and expenses over time, plus a line showing deficits or surpluses.If you see bumps in the expenses line, this indicates that you elected to specify replacing your car periodically. This parallels to some degree the bumps in the liabilities line of the asset/liabilities graph page.When you see the expense line consistently or predominantly above the income line, what is happening is deficit spending. There had better be a good pile of previously accumulated liquid assets before this can be allowed to go on. Otherwise you are quickly into bankruptcy.Keep changing the expenses on the update page until this graph has a closer alignment of income and expense lines, at leat up to your planned retirement year.
