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BUG: Lifetime Planner not modeling Debt Reduction Plan Correctly

ScooterlamScooterlam SuperUser ✭✭✭✭✭

I was looking at how Quicken’s debt reduction planner (DRP) works in Lifetime Planner.   I’ve not used DRP before – so no expert here,  albeit looks basic.


The issue…..when a debt reduction plan is setup and turned on in Lifetime Planner, the increased debt reduction payment is incorrectly applied to the original projected payoff time frame, rather than the new payoff time frame.   See baseline and updated debt reduction plan results (in LTP), below. 


I would have expected to see the new increased debt payment reflected against the new time frame in LTP.


This has the effect, in Lifetime Planner,  of a potentially substantial (and incorrect) reduction in LTP ending balance.  In my test file, the extra expense resulted in a $283K reduced balance at end of plan.  YMMV, but in my example, not unsubstantial.

 

Am I looking at this wrongly?  If not, can the Quicken product team have a look at this aspect of the LTP model?

 Steps to recreate:


STEP 1 - Open and create a debt reduction plan baseline.


Baseline

Original debt plan (no DRP applied)

 

 

STEP 2:  Turn on Debt Reduction Plan in Lifetime Planner then inspect all years in Lifetime Planner for correct reporting of baseline plan time-frame and correct "debt payment." NOTE, at this step you will not have created a "what if" payoff scenario, yet.


What it looks like in LTP  in Year 2021 – CORRECT RESULT

Note 2020 will show a reduced, pro-rated expense in LTP

 


What it looks like in LTP  in Year 2024 – CORRECT RESULT

Note 2025 will show a reduced, pro-rated expense in LTP

 


 

STEP 3:  Open Debt Reduction Planner and create a "what if" payoff scenario that significantly increases the monthly payment and reduces payoff time-frame.


DEBT REDUCTION PLAN SCENARIO

Increased payment from minimum (baseline) $1013 to new plan payment of $2000 results in a reduced payoff time frame from 2025 to 2022

I would expect to see the new debt payment ($2000) and new time frame (2020 to 2022) in LTP.

 


 


STEP 4:  Now, go into Lifetime Planner then inspect  (again) all years in Lifetime Planner for correct reporting of the "What if" payoff scenario created in Step 3.   Here-in lies the problem....


What it looks like in LTP  Year 2024 – INCORRECT!

Increased debt payments ($2000) continue to be applied to the plan’s BASELINE debt plan - 04.2022 through 08.2025.  

Increased debt payment of $2000  should only be applied in LTP from 2020 to 2022.

Instead, the debt payments extend 3 additional years (at the new increased monthly payment) to the original plan date of 2025!

In my test file, the extra expense resulted in a $283K reduced balance at end of plan. 

 



Best Answer

  • Accepted Answer
    Hello @Scooterlam

    Thank you so much for taking the time to submit this bug report.  I have reported this behavior to our Development and Product teams for further investigation and resolution.

    If any additional information or details are needed, we'll be in further contact, otherwise once a solution is available it will be sent out as part of a future product release.

    I hope this information is helpful and thank you again for reporting this issue to the community!

    Sarah

Answers

  • Quicken SarahQuicken Sarah Administrator, Moderator mod
    Accepted Answer
    Hello @Scooterlam

    Thank you so much for taking the time to submit this bug report.  I have reported this behavior to our Development and Product teams for further investigation and resolution.

    If any additional information or details are needed, we'll be in further contact, otherwise once a solution is available it will be sent out as part of a future product release.

    I hope this information is helpful and thank you again for reporting this issue to the community!

    Sarah
  • Norman DrewsNorman Drews Member ✭✭
    edited May 30
    HAH! I'm stuck on turning on a debt reduction plan inside of the lifetime planner. I have a DRP but the planner says I don't.
  • ScooterlamScooterlam SuperUser ✭✭✭✭✭
    edited May 31
    HAH! I'm stuck on turning on a debt reduction plan inside of the lifetime planner. I have a DRP but the planner says I don't.
     What Quicken product and version are you running?

    I understand that some users have experienced this issue, while others (like myself) have not.    https://community.quicken.com/discussion/7869558/lifetime-planner-doesnt-recognize-debt-reduction-plan  It seems to be a known issue with the Quicken team.

    To be sure ...after you've created a DRP, go into Planning tab>Lifetime Planner>Change Assumptions>Debt Reduction.   Do you see and can click the menu item called debt reduction in the Assumptions dialog?  See image.  If so, then can you click edit in the debt reduction pane?  Doing so results in a window that allows you to turn on DRP in LTP.  See image.   

    For you, where does Quicken "break" process?
     


    Whenever, I come across this sort of strange-ness, I do normally do the following...

    1.  Backup Quicken file.  File>Backup and Restore>Backup Quicken File.

    2.  Perform a file validation, File>File operations>Validate and Repair.  Check "File Validation" box>Click Ok

    3.  Close then open Quicken with validated file.   Try again to turn on DRP in LTP.

    4.  Still broken?   Try to uninstall and reinstall the application.  Before doing so, be sure to know how to do this and that you have the correct installation media, if you are not a subscription user.

    5.  Still broken?   When your in LTP, at the screen where Quicken breaks, go to Help>Report a Problem.   Be descriptive and link to community URLs that describe this issue.  You can include a screenshot, but you might want to minimize your account bar first and avoid showing any sensitive data.

    Reporting a problem is no guarantee that it will be fixed anytime soon....or at all.  But, it does register the issue with the product team.  Enough squeaky wheels may get it noticed from the pileup of demands and their priorities!

    You can always call Quicken support to see if there is a current work-around!

    Lastly,  if you're an LTP user that wants bug fixes and improvements to LTP, have a look here and vote at the end of the first post:  https://community.quicken.com/discussion/7713110/lifetime-planner-bug-and-idea-list-make-yourself-heard


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