OnTrajectoryhas two newfeatures 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 anyfinancial 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.
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 atwww.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:
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:
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:
End Age – Accounts with the lowest End Age used first
Account Type – Non-Retirement funds used before Retirement funds
Tax Handling – Non-Tax-Deferred funds used before Tax-Deferred funds
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.
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.
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
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.
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.
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.
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.
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.
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):
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:
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).
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.