Changes to RSP 3 included in Release 3.22: New Features in Version 3.22 - The minimum and maximum client ages have been changed to 0 and 125. - The DetailedInputs sheet now contains a schedule of Roth IRA conversion percentages, which will be applied to the Deductible IRA and Non-Deductible IRA portfolios. - Two new sensitivity tests have been added to explore "black swan" events. Changes to RSP 3 included in Release 3.21: New Features in Version 3.21 - Custom version #3 - Revised to allow both types of unexpected perfomance sensitivity tests to be printed in the same report. Problems Fixed in Version 3.21 - Version 3.21 contains a work-around to the ghost images caused by Microsoft Excel Security Updates (KB973475 and KB973593). Changes to RSP 3 included in Release 3.20: New Features in Version 3.20 - The Year 2009 income brackets were entered into the Federal Tax Table. - Custom version #3 - Enhanced custom version #2 that includes a sensitivity test for unexpected adverse (or favorable) performance. Changes to RSP 3 included in Release 3.19: Problems Fixed in Version 3.19 - The version 3.17 release introduced an error with the Final Wealth Density chart in current year dollars, causing it to be updated incorrectly. This has been fixed in version 3.19. Changes to RSP 3 included in Release 3.18: New Features in Version 3.18 - The version numbers of the add-in, DLL, and workbook will be compared and any incompatibility will be reported to the user. Problems Fixed in Version 3.18 - The tax-exempt dividends were not being recorded on the DetailedTabular sheet, even though one of the income columns included them in its label. Tax-exempt dividends will now be added to the Tax-Exempt Income column on the DetailedTabular sheet. - One user reported a problem with the Filing Status radio buttons on the ClientAssumptions sheet, where they had become disconnected from the cell used to store the input value. This version will automatically re-link the input cell with the radio buttons, whenever those buttons are displayed. Changes to RSP 3 included in Release 3.17: Problems Fixed in Version 3.17 - Known incompatibilities with Excel 2007 have been resolved. New Features in Version 3.16 - The Year 2008 income brackets were entered into the Federal Tax Table. Problems Fixed in Version 3.16 - Correction to custom version #1 - separate portfolio management fees are calculated correctly. New Features in Version 3.15 - The Year 2007 income brackets were entered into the Federal Tax Table. - Custom version #2 - allows Target Ages for sensitivity tables to be based upon user-specified survival probabilities. New Features in Version 3.14 - The Year 2006 income brackets were entered into the Federal Tax Table. - Custom version #2 - provides rudimentary solvers for spending and life insurance. New Features in Version 3.13 - The Year 2005 income brackets were entered into the Federal Tax Table. - The License Info function now reports the most recent Federal Tax Table installed in the RSP workbook. Problems Fixed in Version 3.13 - The Open Case and New Case functions now hide the output sheets, to avoid confusion with the results of a previous client case. New Features in Version 3.12 - The volatilities and correlations in Standard.xls and SizeValue.xls were revised to include historical data from January 1979 through March 2004. New Features in Version 3.11 - The Year 2004 PA tax rate was entered into the "StateTaxPA" Tax Table. - The Year 2004 income brackets were entered into the Federal Tax Table. Problems Fixed in Version 3.11 - Version 3.11 corrects a problem in Version 3.10A with the License Info function that made RSP3 incompatible with Excel 97. New Features in Version 3.10A - Addition to custom version #1 - ability to use univariate lognormal and logstable distributions. Problems Fixed in Version 3.10A - The volatilities for Gov Short Term, Corp Int Term, and Municipals in SizeValue were 1/10th of the correct values. Version 3.10A has the correct values. - Version 3.10A has more realistic values for ST CGDs and LT CGDs, that better account for the change in dividend taxes. - Version 3.10A corrects a typographical error in the "2003 Tax Reform" note in the user manual, and clarifies the instructions for dividend rates. New Features in Version 3.10 - The Jobs and Growth Tax Relief Reconciliation Act of 2003 has been incorporated into the tax model. See "2003 Tax Reform" in the user manual for important details. Problems Fixed in Version 3.10 - The Filing Status used in the analysis was incorrect. Version 3.10 correctly uses the selected Filing Status. - Version 3.09 crashed if the first analysis performed in a session was either Portfolio Sensitivity or Spending Sensitivity. Version 3.10 corrects this problem. - Version 3.10 hides and ignores the Capital Loss Carry-Forward if Accumulation Mode is selected. New Features in Version 3.09 - Custom version #1 - features include a full portfolio sensivity test comparing all combinations of 10 time-dependent rebalancing plans, and a new chart of probability of continuously maintaining target amounts. - New statistics were added to the Summary Statistics (DetailedTabular sheet): the Overall Allocation of the entire portfolio to the various asset classes (hidden by default); and the Overall Return and Volatility of the entire portfolio. - The Year 2003 income brackets were entered into the Federal Tax Table. Problems Fixed in Version 3.09 - The average Return and Volatility statistics were improperly calculated, causing them to be understated. Version 3.09 corrects this problem. - The Tax-Deferred/Taxed Rebalancing Method was incorrectly skipping the IRA accounts when rebalancing, and instead was shifting funds within the Personal Savings accounts to attempt to rebalance the Tax-Deferred. In many cases this caused both the Tax-Deferred and Taxed rebalancing to result in the wrong allocations. Version 3.09 corrects this problem. - Accumulation Mode has had a change made during pre-retirement in Version 3.09: any tax-deferred distributions will be used to meet annual expenses, with the remainder deposited to Personal Savings. - Version 3.09 initializes each Portfolio Investment Strategy in the Portfolio Sensitivity and Complete Analysis to the allocations input on the CurrentPortfolio sheet. Previous versions initialized each strategy to the desired allocation, which would not properly account for the first year of rebalancing. - The macro that validates the contents of the RebalancingPlan sheet was using the ages of the second person to determine which cells should be checked, even if the current case was a one-person case. Version 3.09 correctly ignores these ages. - The macro that hides inapplicable inputs for Accumulation Mode was not hiding Pre-Retirement Deductions & Exemptions in two-person cases. Version 3.09 correctly hides these inputs. Problems Fixed in Version 3.08 - The Filing Status radio buttons on the ClientAssumptions sheet in Version 3.07 were not being used in the analysis. Version 3.08 correctly uses the selected Filing Status. - The rounding of values, introduced in Version 3.07, did not work for individual accounts with more than $20 million. Version 3.08 correctly rounds all values in the analysis. New Features in Version 3.07 - Users now have the option of rebalancing using a Global/Taxed scheme or a Tax-Deferred/Taxed scheme. See the user manual for details. - Users now have the option of disabling the penalty for premature distributions from tax-deferred accounts, for use with clients making substantially equal periodic distributions. - The ClientAssumptions sheet now includes a slot for last year's capital loss carry-forward. - On the DetailedTabular sheet, the Average Portfolio Contributions statistics have been changed to Average Portfolio Transactions. These statistics now represent the average net change to each portfolio. This will help users gain an understanding of the RSP cash flow, particularly when running a zero replication (no volatility) case. - The overall allocation of each asset class in the current portfolio is calculated and displayed on the CurrentPortfolio sheet. - The Return, Volatility, and Value-at-risk of the current portfolio are calculated and displayed on the CurrentPortfolio sheet. - The Return, Volatility, and Value-at-risk implied by each standard portfolio are calculated and displayed on the RebalancingSchedules sheet. - Frequently asked questions and other improvements have been made to the user manual, including a detailed appendix describing cash flow in RSP. Problems Fixed in Version 3.07 - The Loss Carry Forward was not properly zeroed out at the beginning of each replication. Version 3.07 correctly sets this to the user input Loss Carry Forward at the beginning of each replication. - Minimum Required Distributions were being considered in the Excess Income calculation, so that when users selected Excess Income goes to Spending, any amount leftover from the MRD was being spent. Version 3.07 correctly deposits this excess to the taxed portfolio. - Minimum Required Distributions were being under-withdrawn, particularly when they began in the first year of the analysis. Version 3.07 correctly makes these distributions in full. - Statistics were not being rounded to the nearest penny, resulting in an unusually high probability of portfolio amounts between 0 and $1. Version 3.07 rounds portfolio amounts to the nearest penny, causing amounts less than a half-penny to be considered to be zero. - On the DetailedTabular sheet, the calculations of the Average Return and Volatility statistics were calculated incorrectly, causing their value to decrease as the value of the portfolio decreased. Version 3.07 correctly reports these statistics, so that they do not decrease until the portfolio is exhausted for all replications. When this occurs, both will be 0%. - On the DetailedTabular sheet, the difference between FICA Medicare earnings and FICA Social Security was being reported in the Other Regular Income statistic instead of the Earnings statistic. Version 3.07 correctly reports this income. (c) 1998-2009 Daniel H. Wagner, Associates, Inc. Version 3.21