October Update: New OnTrajectory Features

OnTrajectory has two new features this month: Updating Progress & Cost Basis

1. Updating Progress
While you’ve been able to track your Progress over time in OnTrajectory, we’ve revised the math behind the “Future Projection” of that progress. Previously, only the total between your Trajectory and Progress was considered. Now, we consider each Account’s “% Growth” rate individually, meaning more accurate future projections.

We’ve also made the interface more informative and easier to use, as shown below:

2. Cost Basis
In some situations, you may want to set the “cost basis” for the Starting Balance of an account. This is the amount of un-taxed contributions when it’s first defined in OnTrajectory.

Typically, defining a Cost Basis is only significant if you have a large account with sizable prior growth (such as a mutual fund that’s been growing for some time) and for which you have not paid taxes on the growth. This option is available only for accounts that have a Tax Type of “Tax-Deferred (gains only)”. For more information on Tax Types, see the guide Modeling Accounts and Taxes.


As a reminder, OnTrajectory is completely INDEPENDENT and not affiliated with any financial product or services company. Our goal is to provide the easiest and most flexible tool on the web. Our unbiased approach helps you visualize your long-term financial future unlike any other planner currently available to consumers.

OnTrajectory Releases Collaborative Financial Planning Tool for Educators

PRESS RELEASE

Baltimore, Maryland (July 11, 2017) OnTrajectory, a Baltimore-based, veteran-owned “FinTech” start-up, has just released a first-of-its-kind financial planning platform allowing educators and students to collaboratively model complex financial strategies and techniques. OnTrajectory’s emphasis on visualizations and high-fidelity graphs makes it perfect for individuals learning the effects of compound savings,  tax-handling, expense management and other aspects of financial planning.

Time Magazine calls it “one of the best user interfaces available in the retirement calculator world” (http://time.com/money/4212970/best-retirement-calculators/), and OnTrajectory has extended its innovative interface by offering pre-defined scenarios that are both visually-striking and interactively fun. Educators can also create and distribute their own scenarios to illustrate key-concepts based on their curriculum, while students can manipulate and experiment with them in real-time.

Financial-planning tools abound on the Internet, but OnTrajectory separates itself by having the lowest barrier-of-entry AND the most flexibility. No other consumer-focused tool allows the same depth and complexity and, more importantly, the ability to help navigate a successful and secure future. Tyson Koska, OnTrajectory’s founder, says: “Our goal is to enhance the financial health and literacy of a generation.”

OnTrajectory.com began in 2015 as a free personal-finance planning platform. In 2016 they launched a subscription plan ($5/month or $50/year), which allows greater depth and detail. Their new “Educational Offering” provides significant incentives to Educational Institutions, Public Libraries, and Charitable Organizations based on size and need. Read more at www.OnTrajectory.com/EDU_portal.html.

OnTrajectory.com has received an enthusiastic response from both customers and professionals and been featured on multiple “best-of” lists across the web:

https://ptmoney.com/best-robo-advisors/

http://time.com/money/4212970/best-retirement-calculators/

http://www.caniretireyet.com/the-best-retirement-calculators/

Contact:

questions@OnTrajectory.com

Phone: 410-989-1968

Easier Tax-Rate Modeling

We’ve made it easier to model the tax-advantages of contributing to a retirement plan.

Now, when you designate contributions that typically occur “pre-tax” (such as those to a 401K or Traditional IRA), OnTrajectory automatically excludes those contributions from taxable Income — meaning you needn’t adjust your tax-rate to account for those contributions.

We’ve also added Retirement Plan Contributions to the “Incomes” data table so you can easily see all contributions excluded from taxable income, as shown below:

retPlanContrib

Remember, we are constantly rolling-out new features, so be sure to log on frequently – and don’t forget to update your progress while you’re there!

Don’t wait any longer, get OnTrajectory today. Log On Now »

Smarter “Draw-Downs”

OnTrajectory just got a little smarter.

When modeling years with negative cash-flow (such as retirement), OnTrajectory has always let you indicate which accounts to draw funds from first
– but now you can leave more of those decisions to us!

Our draw-down logic now takes into account 4 characteristics when automatically selecting an account to pull funds from:

  1. End Age – Accounts with the lowest End Age used first
  2. Account Type – Non-Retirement funds used before Retirement funds
  3. Tax Handling – Non-Tax-Deferred funds used before Tax-Deferred funds
  4.  Account Balance – Account with highest balance used first

This technique ensures that automatic draw-downs maximize both tax savings and minimize early withdrawal penalties – making it easier for you to gain insight into your financial future and see where your money is taking you.

Remember, we are constantly rolling-out new features, so be sure to log on frequently – and don’t forget to update your progress while you’re there!

Don’t wait any longer, get OnTrajectory today. Log On Now »

Expanded ‘Employer Contributions’ at OnTrajectory

We’ve expanded our Employer Contributions functionality to give you more financial modeling flexibility. Now you can define contributions from employers for both 401k/403b and HSA accounts.

In addition, both your defined contributions and employer contributions can be designated either as a fixed amount or as percentage of Income (or any combination of the two), as illustrated below:

contrib

Just a reminder, we are constantly rolling – out new features, so be sure to log on frequently – and don’t forget to update your progress while you’re there!

Don’t wait any longer, get OnTrajectory todayLog On Now »

2 Great New Features in OnTrajectory

We’ve just released 2 new features in OnTrajectory. The first is our Home Equity tool, which greatly enhances your ability to track the accumulation of equity over the term of a loan / mortgage. Read all about it here!

Second is our IRA Conversion feature – you can now model the conversion of a Traditional IRA to a Roth IRA and see if it would be a long-term benefit to you.

Just a reminder, we are constantly rolling – out new features, so be sure to log on frequently – and don’t forget to update your progress while you’re there!

Don’t wait any longer, get OnTrajectory todayLog On Now »

New Feature Alert: More & Better HELP!

You’ve probably noticed these little guys –>  <– showing up all over OnTrajectory.

Each one launches you into a Guide right where you need to be. ‘Context-sensitive’ is what they call it, which really means you don’t have to go to the Main Menu  to find information — you can get it fast, when you need it.

Once you’re in a Guide, you’ll now see a handy Table of Contents at the top of each. These are all linked inside the Guide, again to help you both see what information is available, but also to get to it quickly — see sample below:

Finally, All Guides — Table of Contents” is now located in the Main Menu. The list of topics continues to grow every month as new features are released, here is the current Guide list:

1. Getting Started with OnTrajectory
2. Modeling Income

3. Modeling Expenses
4. Modeling Accounts & Taxes
5. Adding a Spouse / Owner
6. Tracking Progress
7. Setting Goals
8. Monte Carlo and Historical Analysis

9. Creating and Managing Scenarios
10. Understanding Output Data


Please be aware that NO information contained in this communication should be considered investing advice. All financial information is solely for educational purposes. Please see your own professional for personal investment advice.
Our mailing address is: questions@OnTrajectory.com

New Feature Alert: Item Re-Ordering & Equation Support

Two new feature enhancements to OnTrajectory this month!

Feature 1: Item Re-Ordering
Change the order your Income, Expense & Account items appear — just click and drag the ‘up/down’ icon to move items to a new position (note: the top-most ‘Deposit Account’ cannot be moved).

Feature 2: Support for Equations
You can now use mathematical operators to add (+), subtract (-), multiply (*), and divide (/)  values in ‘Amount’ fields. This feature is similar to typing in a spreadsheet cell. For example, to quickly calculate an expense that is billed 4 times per year @ $87, simply type in the amount field: =4*87 and press ‘Enter‘.

That’s it! No need to have a calculator open and nearby when entering values into OnTrajectory.

Top-20 Features Added to OnTrajectory in 2016

It was a busy year at OnTrajectory, releasing new features at a rate of over once-per-month. As we begin to look to 2017, here’s a list of the Top-20 Features we added in 2016:

  1. Ability to define central effective tax-rates for all items in your model, based on different periods of your life
  2. Ability to define a centralized retirement age (by using ‘R’ for a start/end age) letting you more easily analyze the effect of retiring at different ages
  3. Ability to designate ‘variable’ expenses (such as 4% of assets)
  4. Automatic calculation of Required Minimum Distributions (RMDs) for tax-deferred accounts (such as IRAs and 401Ks)
  5. Support for inherited IRAs by automatically calculating separate RMDs, as required by the IRS
  6. Ability to override the central Inflation Rate for individual Income or Expense items
  7. Ability to redeem ‘reward points’ for FREE months of our PowerPlan
  8. Ability to earn ‘reward points’ through referrals to friends
  9. Expansion of data output tables, with the ability to view in either Today’s or Tomorrow’s Dollars
  10. Ability to print or save data output in a separate spreadsheet
  11. Interactive tutorials, 9 and counting
  12. Ad-hoc inflation-converter
  13. Ability to type equations in number fields, e.g. ‘=500+500’ computes to 1000 (after pressing the ‘Enter’ key)
  14. Ability to define matching contributions for 401Ks
  15. Ability to define income, expenses or accounts for multiple individuals (such as a spouse)
  16. Ability to define income as ‘tax-exempt’
  17. Automatic draw-down of funds, as needed, based on individual tax-treatments of an account
  18. Enforcement of ‘early withdrawal penalties’ for tax-deferred accounts (such as IRAs and 401Ks)
  19. Ability to auto-save data changes
  20. Ability to save notes for individual Scenarios
  21. There really was more, but you’re probably bored by now…

Stay-tuned in the next couple weeks as we lay out our plans for 2017!

How Much Is this $hit Costing Me: Part 1

What’s the full financial impact of your coffee habit? This is the explainer for Part 1 of our video series: “How Much is this $hit Costing Me?”

Let’s say you’re a fresh college grad with a mild macchiato addiction. Of course this could alternately be replaced by a weakness for lattes, mochas  or any of a number of delicious coffee concoctions. We’ll assume the habit remains more-or-less consistent over the course of your life.

Now, to the numbers…

Three macchiatos per week, that’s $15. Over the course of one’s life (3,536 weeks * $15), that’s $53,040. Assuming 3% inflation, you’re looking at $115,054. Ouch.

costs

By brewing at home, however, and purchasing one macchiato per week  you could save about $500/yr. What if that $500 was invested in a moderate risk, tax-deferred account? Let’s use OnTrajectory to see the full financial impact.

OnTrajectory takes your unique mix of Income, Expenses, Investments and maps a path into your financial future each are discussed below.

macchiatt_income

Income:  It looks like our college grad landed a pretty decent job – probably an entry-level computer programmer or something sexy like that. This example assumes an average 5% raise per year until the age of 40 (as shown in the ‘Growth Override’ column). Thereafter, the salary merely keeps up with inflation.

macchiatt_expense

Expenses: This example includes “grouped” expenses (indicated by the orange ‘G’) defined in three unique age ranges: 22-29 includes rent, 30-67 includes the purchase of a home, and 68-90 shows basic expenses dropping during retirement years.

In addition, we see a boat purchase at 45, and a semi-extravagant vacation later in life. Finally, we see the coffee expense broken out separately at $780/year.

macchiatt_accounts

Accounts & Taxes: Not much to see here, just a Deposit Account with effective tax-rates based on income level. There doesn’t seem to be any tax-deferred/retirement account or any other types of investments defined.

Subsequently, the financial Trajectory looks like this (in tomorrow’s dollars):

before

We can clearly see various rates of saving based on income and expenses. The steep increase at 60 is a result of the mortgage being paid-off  but as you can see it wasn’t quite enough, and this individual runs out of cash at the age of 88 and is $139,713 in hole by age 90.

Let’s reduce the coffee expense to $280/year and invest the savings into an account with an average rate of return of 5.04% How did we come up with 5.04%? We took a handful of highly-rated moderate-risk mutual funds (entirely at random) and averaged their 20-year returns. It may not be scientific, but it’s fairly reflective of how a lot of folks invest.

Here’s the result:

after

Notice that not only do you stay financially afloat throughout life, there’s  a tidy $320k surplus at the end (again, in tomorrow’s dollars).

math

It’s MATH, and it’s power stuff. The truth is, small lifestyle changes CAN have half-million dollar impacts over the course of one’s life. OnTrajectory helps you identify and visualize those impacts. So don’t wait any longer, get OnTrajectory today.

 


 

DISCLAIMER: Please be aware that no information contained in this communication should not be considered investing advice. All financial information is solely for educational purposes. Please see your own professional for personal investment advice.