What are Today’s dollars vs. Future dollars vs. “at horizon”?

Today’s dollars answer: if money arrives later, what is it worth in today’s purchasing power? Inflation and waiting usually make future amounts “feel” smaller today, so a headline like “$1M at age 85” might read closer to ~$740k in today’s dollars under a simple illustrative inflation assumption. In scenario results, the Show dollars control is a viewing lens, not a new plan: Today’s dollars shows purchasing-power columns; Future dollars shows face-value amounts as projected; At retirement / At horizon pin that same future-dollar math to a life milestone (paycheck start age or planning-horizon end age). Lifetime scoreboard lines in today’s dollars also discount a stream of future amounts into today’s terms so years can be compared fairly.

What is risk preference, or my investment mix?

Risk preference is your target mix: how much of the portfolio sits in equities versus fixed income (and optional alternatives). Conservative tilts toward bonds; aggressive tilts toward stocks. A higher equity share usually means more growth potential and wider year-to-year swings: not a forecast, just the usual pattern. The chart below is illustrative. Under it, average annual total returns from our backtest history (plus worst/best single-year returns in the window) show how equities, Treasuries, Munis, and investment-grade bonds have behaved: use the years-back slider to change the window.

What is asset allocation vs. asset location?

Asset allocation is your mix: how much in equities, bonds, cash, and so on. Asset location is which account holds each piece of that mix. Two households with the same mix can end up with very different after-tax results if placement differs.

Why does account type matter for taxes?

Taxable brokerage, traditional 401(k)/IRA, and Roth accounts tax growth, income, and withdrawals differently. The same fund can leave more (or less) in your pocket depending on which “bucket” it sits in, and when you contribute or withdraw.

What are taxable, tax-deferred, and tax-free accounts?

Taxable accounts (e.g. brokerage) typically tax dividends, interest, and realized gains along the way. Tax-deferred accounts (traditional 401(k)/IRA) usually defer tax until withdrawal. Tax-free / Roth-style accounts are funded with after-tax dollars and generally allow qualified withdrawals tax-free. Each plays a different role in a long-term plan.

What is tax drag?

Tax drag is the reduction in compounding from taxes paid along the way, for example on dividends or realized gains in a taxable account. Lowering unnecessary drag doesn’t change market returns; it changes how much of those returns you keep invested.

Why does the order of contributions and withdrawals matter?

Where each new dollar goes, and which account you draw from first in retirement, changes taxes year by year. Small sequencing differences can compound over decades: similar to playing the same cards in a different order.

What is a “retirement paycheck” in planning terms?

It usually means a sustainable annual (or monthly) spending level you can support from savings and other income over a planning horizon, under stated assumptions. Plans often compare how long that paycheck lasts under different placement and withdrawal strategies.

Are simple rules like “bonds in IRAs, stocks in taxable” enough?

Rules of thumb can be a starting point, but they ignore your full picture: multiple account types, contribution room, withdrawal timing, and your goal (paycheck vs. wealth vs. legacy). Holistic planning looks at the whole household over time, not one shelf at a time.