Glossary

Plain-language meanings of the words you’ll see in PlanHarbor, and where each one appears.

8 in 10 futures

The light shaded band on the “Savings over time” chart on “Harbor View.” In 8 of every 10 simulated futures, your savings that year land inside this band.

Above, Near and Below your goal

The label beside your chance of success on “Harbor View.” “Above” means at or above your goal, “Near” means up to 30 points below it, and “Below” means further below. When you’re near or below, a line under the bar may show one change that reaches your goal, such as retiring a year later.

Asset class

A kind of investment, such as US equity, International equity, Bonds, Cash, Balanced funds, Cryptocurrency or Precious metals. On “Accounts,” an investment account’s “Mix by asset class” shows how its money is split. For a linked holding, “Needs your review” may ask “What kind of investment is it?”

Capital gains

The profit when an investment sells for more than its cost basis. PlanHarbor estimates tax on gains when your plan takes money from a taxable account, treating every gain as long-term. It’s an estimate; “How your taxes are estimated” on “Assumptions” explains the details.

Chance of success

The large percent on “Harbor View,” followed by “of futures last to” and your plan-until age. It’s the share of simulated futures where your income and savings cover every year’s costs without using your emergency reserve. PlanHarbor shows at most 99%.

Cost basis

What you paid for the investments in a taxable account, used to estimate capital gains. You can enter it as “Cost basis ($, optional)” when adding or editing a taxable investment account on “Accounts.” If it’s missing, PlanHarbor assumes $0 (all gain) and says so under “Notes on this result” on “Assumptions.”

Cost of living adjustment (COLA)

A yearly increase in a benefit, set for a pension under “Yearly increases (COLA)”: “None,” “A fixed percent a year” or “Follows inflation.” Military retired pay rises with your plan’s inflation rate, or one point less under REDUX. Social Security rises by the “Social Security increase” listed under “Rates” on “Assumptions.”

Earliest retirement age

The earliest age, from 40 (or your age today) up to 75, at which your plan meets your goal. Find it on “Explore your future” with “Find my earliest safe ages,” which takes about half an hour. For a couple, it gives an age for each of you.

Emergency reserve

Cash set aside in your plan and used only as a last resort. A simulated future that has to use it doesn’t count as lasting. It’s listed as “Emergency reserve” under “Spending” on “Assumptions”; new plans start with none.

Example numbers

Values PlanHarbor fills in for setup questions you haven’t answered. “Harbor View” then says “Based on example numbers,” with “Update yours” to change them or “These are my numbers” to keep them.

Expected return

The yearly growth PlanHarbor assumes on average for each asset class, including its income. Each kind you hold is listed in the “Investments” table on “Assumptions,” marked “PlanHarbor default” or “Your setting.” The “Assumptions” panel also shows your whole mix as “Your mix: about X% a year before inflation.”

Full retirement age

The age your full Social Security benefit starts, set by birth year: 67 if you were born in 1960 or later. Starting earlier pays less each month, and waiting up to 70 pays more. The “Social Security” setup step shows your monthly amount “At 62,” “At 65,” “At 67” and “At 70.”

Income cushion

An extra percent added on top of your monthly spending target in retirement, for room to spare. It’s listed as “Cushion” under “Spending” on “Assumptions”; new plans start with none.

Inflation

How fast prices rise each year in your plan. Change it under “Inflation” in the “Assumptions” panel; picking Optimistic, Average or Pessimistic sets it to 2.03%, 2.54% or 3.05%. Your pay, tax values and Social Security’s yearly increase grow with it.

IRMAA (Medicare surcharges)

Extra Medicare Part B and Part D premiums for people with higher income. PlanHarbor estimates them from your income two years earlier and adds them to your healthcare costs. It’s an estimate; see “How your taxes are estimated” on “Assumptions.”

Market setting

How investments are assumed to grow, shown on “Harbor View” (as in “Optimistic · Today’s dollars”) and chosen under “Markets” in the “Assumptions” panel. Optimistic returns are 20% above Average and Pessimistic 20% below; cash is unchanged, and new plans start on Optimistic. “Your own numbers” means returns were entered by hand; picking a setting replaces them.

Military retired pay

Monthly retired pay from military service, added on “Accounts” under “Military Retirement Benefit Plans” with “Add military retired pay.” Before it starts, “Estimate my retired pay” works out an amount from your retirement system and service, labeled “PlanHarbor estimate.” It counts as income, not as a balance.

Monthly spending target

What your plan pays for each month in retirement, after tax and in today’s dollars, not counting healthcare and debt payments. Setup sets it from “Monthly spending today” and “In retirement, percent of today.” It’s listed as “Monthly target” on “Assumptions.”

Net worth

What you own minus what you owe: your accounts and home value, less your mortgage and other loans. “Harbor View” shows “Net worth today,” at retirement and at your plan’s end, using the typical future. Pensions and military retired pay aren’t included.

Pension

A monthly benefit from an employer’s retirement plan. Add it in the “Pensions” setup step or on “Accounts” under “Defined Benefit Retirement Plans”; it counts as income, not as a balance. A lump sum offer is shown for comparison only; your plan uses the monthly benefit.

Plaid and linked accounts

PlanHarbor uses Plaid to connect your bank or investment accounts, so their balances stay up to date by themselves. Choose “Link an account” on “Accounts,” then sign in to your institution in Plaid’s window; PlanHarbor never sees your password. PlanHarbor only reads balances, holdings and transactions; it can’t move money.

Plan-until age

The age your plan runs to, set under “Plan until age” in setup (70 to 110); a couple shares one age. It appears after “of futures last to” on “Harbor View.”

Required minimum distributions (RMDs)

Yearly withdrawals the IRS requires from tax-deferred accounts, starting between ages 72 and 75, depending on your birth year. PlanHarbor includes them in your plan and its tax estimate. “What’s coming up” on “Harbor View” marks the year “Required withdrawals start.”

Retirement paycheck

The monthly amount your plan pays for, after taxes, in the first full year everyone is retired: spending, healthcare and debts. “Your retirement paycheck” on “Harbor View” splits it into “Social Security and pensions” and “from savings.”

Roth account

A retirement account, such as a Roth IRA or Roth 401(k), whose qualified withdrawals are generally tax-free. PlanHarbor treats its withdrawals as tax-free; the Roth five-year rule isn’t modeled. These accounts appear under “Roth” on “Accounts.”

Roth conversion

Moving money from a tax-deferred account to a Roth account; the amount moved counts as taxable income that year. For some states, “How your taxes are estimated” on “Assumptions” notes how PlanHarbor treats conversions in its state tax estimate.

Share in stocks

The percent of your typed-in savings held in stocks, set under “Share in stocks” in the “Assumptions” panel. PlanHarbor puts that share in US stocks and the rest in bonds. When your mix comes from your accounts instead, the panel says “Your mix comes from your accounts.”

Shortfall

A year when your income and savings can’t cover that year’s costs without using your emergency reserve. A simulated future with a shortfall doesn’t count toward your chance of success.

Simulated futures

PlanHarbor runs your plan many times, each with different random yearly market returns drawn from each asset class’s expected return and volatility. This is often called a Monte Carlo simulation. Together, these futures give your chance of success and the chart’s lines; “Assumptions” shows how many were run.

Social Security earnings test

If you start Social Security before full retirement age and still work, some benefits are held back when earnings pass a yearly limit. PlanHarbor applies this in your results and raises your benefit at full retirement age for the months held back.

Survivor Benefit Plan (SBP)

A military retirement option that pays the person covered 55% of a chosen base amount each month for life after your death. A premium comes out of your retired pay while you’re alive. Set it under “Survivor Benefit Plan (SBP)” when adding military retired pay on “Accounts.”

Survivor spending

For a couple, the share of your spending the plan assumes once only one of you is alive. It’s listed as “Once one of you is alive” under “Spending” on “Assumptions.”

Tax-deferred account

A retirement account, such as a 401(k), 403(b) or traditional IRA, where withdrawals count as taxable income. PlanHarbor uses these from age 60, or from 55 for some workplace plans if you retire that year or later. They appear under “Tax-deferred retirement” on “Accounts.”

Taxable account

An investment account with no special tax treatment, such as a brokerage account. Its interest and dividends are taxed each year, and selling at a profit creates capital gains. These appear under “Taxable investments” on “Accounts.”

Taxable Social Security

The part of your Social Security benefits counted as federal taxable income, up to 85%, depending on your other income. PlanHarbor estimates it each year using the IRS worksheet method; it’s an estimate.

Today’s dollars and future dollars

“Today’s dollars” shows future amounts adjusted back by your plan’s inflation, so they compare with prices now. “Future dollars” shows amounts as they’d be paid then. Choose under “Show amounts in” in the “Assumptions” panel; the view changes at once.

Tough future (1 in 10)

The dashed line on the “Savings over time” chart on “Harbor View.” In only 1 of every 10 simulated futures are your savings lower that year.

Typical future

The solid line on “Savings over time” on “Harbor View”: each year, half of simulated futures are above it and half below. Your net worth at retirement and at the end uses it too.

Update my plan

The button that recalculates your results after something changes. When “Harbor View” says “Your plan changed since these results,” choose “Update my plan.” Changes in the “Assumptions” panel also wait for it.

View-only access

Access to someone else’s household that lets you see their plan but not change it. The menu shows “View only” under the household’s name, and a change attempt shows “You have view-only access to this household.”

Volatility

How much an asset class’s yearly return swings up and down. It’s listed in the “Investments” table on “Assumptions” and is used to simulate futures for your chance of success.

Withdrawal order

The order your plan takes money from your accounts to cover costs. Cash above your emergency reserve goes first. Then accounts follow the order under “Withdrawals” on “Assumptions,” for example “Taxable accounts first, then tax-deferred, then Roth.”

Your goal

The chance of success your plan aims for, marked by a buoy and “Your goal” on “Harbor View.” New plans start with a 75% goal. “Assumptions” lists it under “Chance of success.”