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How to Model a Personal Loan to Others in Projection Lab

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Why You Can't Just Model It as Income If you've ever lent money to a family member or friend and tried to model it in Projection Lab, you've probably run into a wall. PL doesn't have a native way to handle it, and if you just enter the payments as income, you'll overstate your taxes every single year of the loan. When someone repays a personal loan, each payment has two parts: Return of principal:  not taxable. You already paid tax on this money. Interest:  taxable as ordinary income. If you lump the whole payment into a single income stream in PL, it taxes everything. You have to split them into two separate streams to get the tax treatment right. The Three-Piece Setup in Projection Lab 1. The outflow Model the initial loan as a one-time expense in the year you make it. This reduces your cash balance at origination. 2. Interest income Create a separate ordinary income stream for the interest only. This is the piece that changes every year and where the Adv...
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Personal Loan Interest Calculator

Use this calculator to see the annual interest and principal breakdown on any personal loan. Enter your loan amount, interest rate, and term to see a year-by-year amortization schedule. Useful for modeling loans to family members in your financial plan.
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How to Model Long Term Care in ProjectionLab

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How to Model Long Term Care in ProjectionLab: Probabilities, Costs and the Three Scenarios You Need to Run Most ProjectionLab users have stress tested their portfolio against market crashes, optimized their Roth conversions and feel good about their probability of success. Then they skip the one scenario most likely to blow it up. Long term care is the largest uninsured financial risk most households carry into retirement and the odds are higher than you think, the costs are more nuanced than the headlines suggest and almost nobody is modeling it correctly. This article explains how to go about modeling long term care in ProjectionLab. What Are the Odds? The probability of needing long term care is higher than most people expect and varies significantly depending on whether you are single or married. For a Single Person According to the American Association for Long Term Care Insurance 2024 report: Demographic Probability Average Duration Women 51% 3.2 years Men 3...
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Location: Texas, USA
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ProjectionLab vs Advisor Software: What are DIY Investors Missing?

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If you are managing your own financial plan in ProjectionLab you are already ahead of most people. You understand your numbers, you run your own scenarios and you don't need a PDF from an advisor to tell you where you stand. But there is a question worth asking. Are you missing anything? It's a fair question. The financial planning software that most advisors use has been around for decades. It has deep integrations, institutional backing and a long track record. ProjectionLab is newer. It was built for people like you. DIY investors who wanted a powerful tool without the advisor price tag. But does newer and more accessible mean better? Or are there things the big platforms do that ProjectionLab simply can't? The honest answer might surprise you. What the Big Advisor Platforms Actually Are The tools most financial advisors use every day are enterprise platforms like eMoney, MoneyGuidePro and RightCapital. They are sophisticated, expensive and built primarily for advisors n...
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