owlplanner 2025.2.14__py3-none-any.whl → 2025.2.19__py3-none-any.whl

owlplanner/config.py

@@ -64,6 +64,7 @@ def saveConfig(plan, file, mylog):
         "Heirs rate on tax-deferred estate": float(100 * plan.nu),
         "Long-term capital gain tax rate": float(100 * plan.psi),
         "Dividend tax rate": float(100 * plan.mu),
+        "TCJA expiration year": plan.yTCJA,
         "Method": plan.rateMethod,
     }
     if plan.rateMethod in ["user", "stochastic"]:
@@ -226,6 +227,7 @@ def readConfig(file, *, verbose=True, logstreams=None, readContributions=True):
     p.setDividendRate(float(diconf["Rates Selection"]["Dividend tax rate"]))
     p.setLongTermCapitalTaxRate(float(diconf["Rates Selection"]["Long-term capital gain tax rate"]))
     p.setHeirsTaxRate(float(diconf["Rates Selection"]["Heirs rate on tax-deferred estate"]))
+    p.yTCJA = int(diconf["Rates Selection"]["TCJA expiration year"])
 
     frm = None
     to = None

owlplanner/plan.py

@@ -249,7 +249,8 @@ class Plan(object):
         assert inames[0] != "" or (self.N_i == 2 and inames[1] == ""), "Name for each individual must be provided."
 
         self.filingStatus = ["single", "married"][self.N_i - 1]
-
+        # Default year TCJA is speculated to expire.
+        self.yTCJA = 2026
         self.inames = inames
         self.yobs = np.array(yobs, dtype=np.int32)
         self.expectancy = np.array(expectancy, dtype=np.int32)
@@ -305,9 +306,8 @@ class Plan(object):
             endyear = thisyear + self.horizons[i] - 1
             self.mylog.vprint(f"{self.inames[i]:>14}: life horizon from {thisyear} -> {endyear}.")
 
-        # Prepare income tax and RMD time series.
+        # Prepare RMD time series.
         self.rho_in = tx.rho_in(self.yobs, self.N_n)
-        self.sigma_n, self.theta_tn, self.Delta_tn = tx.taxParams(self.yobs, self.i_d, self.n_d, self.N_n)
 
         # If none was given, default is to begin plan on today's date.
         self._setStartingDate(startDate)
@@ -443,6 +443,15 @@ class Plan(object):
         self.mu = mu
         self.caseStatus = "modified"
 
+    def setExpirationYearTCJA(self, yTCJA):
+        """
+        Set year at which TCJA is speculated to expire.
+        """
+        self.mylog.vprint(f"Setting TCJA expiration year to {yTCJA}.")
+        self.yTCJA = yTCJA
+        self.caseStatus = "modified"
+        self._adjustedParameters = False
+
     def setLongTermCapitalTaxRate(self, psi):
         """
         Set long-term income tax rate. Rate is in percent. Default 15%.
@@ -980,9 +989,11 @@ class Plan(object):
 
         if not self._adjustedParameters:
             self.mylog.vprint("Adjusting parameters for inflation.")
+            self.sigma_n, self.theta_tn, self.Delta_tn = tx.taxParams(self.yobs, self.i_d, self.n_d,
+                                                                      self.N_n, self.yTCJA)
+            self.sigmaBar_n = self.sigma_n * self.gamma_n[:-1]
             self.DeltaBar_tn = self.Delta_tn * self.gamma_n[:-1]
             self.zetaBar_in = self.zeta_in * self.gamma_n[:-1]
-            self.sigmaBar_n = self.sigma_n * self.gamma_n[:-1]
             self.xiBar_n = self.xi_n * self.gamma_n[:-1]
             self.piBar_in = self.pi_in
             for i in range(self.N_i):
@@ -2572,7 +2583,7 @@ class Plan(object):
 
         fig, ax = _lineIncomePlot(self.year_n, series, style, title, yformat)
 
-        data = tx.taxBrackets(self.N_i, self.n_d, self.N_n)
+        data = tx.taxBrackets(self.N_i, self.n_d, self.N_n, self.yTCJA)
         for key in data:
             data_adj = data[key] * infladjust
             ax.plot(self.year_n, data_adj, label=key, ls=":")

owlplanner/tax2025.py

@@ -24,49 +24,62 @@ from datetime import date
 
 taxBracketNames = ["10%", "12/15%", "22/25%", "24/28%", "32/33%", "35%", "37/40%"]
 
-rates_2025 = np.array([0.10, 0.12, 0.22, 0.24, 0.32, 0.35, 0.370])
-rates_2026 = np.array([0.10, 0.15, 0.25, 0.28, 0.33, 0.35, 0.396])
+rates_TCJA = np.array([0.10, 0.12, 0.22, 0.24, 0.32, 0.35, 0.370])
+rates_nonTCJA = np.array([0.10, 0.15, 0.25, 0.28, 0.33, 0.35, 0.396])
 
+###############################################################################
+# Start of section where rates need to be actualized every year.
+###############################################################################
 # Single [0] and married filing jointly [1].
-taxBrackets_2025 = np.array(
+
+# These are current.
+taxBrackets_TCJA = np.array(
     [
         [11925, 48475, 103350, 197300, 250525, 626350, 9999999],
         [23850, 96950, 206700, 394600, 501050, 751700, 9999999],
     ]
 )
 
-irmaaBrackets_2025 = np.array(
+irmaaBrackets = np.array(
     [
         [0, 106000, 133000, 167000, 200000, 500000],
         [0, 212000, 266000, 334000, 400000, 750000],
     ]
 )
 
-# Use index [0] to store the standard Medicare part B premium.
+# Index [0] stores the standard Medicare part B premium.
 # Following values are incremental IRMAA part B monthly fees.
-# 2024 total monthly fees: [174.70, 244.60, 349.40, 454.20, 559.00, 594.00]
-# irmaaFees_2024 = 12 * np.array([174.70, 69.90, 104.80, 104.80, 104.80, 35.00])
-irmaaFees_2025 = 12 * np.array([185.00, 74.00, 111.00, 110.90, 111.00, 37.00])
+irmaaFees = 12 * np.array([185.00, 74.00, 111.00, 110.90, 111.00, 37.00])
 
-# Compute 2026 from 2017 with 27% increase.
+# Make projection for non-TCJA using 2017 to current year.
 # taxBrackets_2017 = np.array(
 #    [ [9325, 37950, 91900, 191650, 416700, 418400, 9999999],
-#      [18650, 75900, 153100, 233350, 416700, 470000, 9999999],
+#      [18650, 75900, 153100, 233350, 416700, 470700, 9999999],
 #    ])
-
-taxBrackets_2026 = np.array(
+#
+# stdDeduction_2017 = [6350, 12700]
+#
+# For 2025, I used a 30.5% adjustment from 2017, rounded to closest 50.
+#
+# These are speculated.
+taxBrackets_nonTCJA = np.array(
     [
-        [11850, 48200, 116700, 243400, 529200, 531400, 9999999],
-        [23700, 96400, 194400, 296350, 529200, 596900, 9999999],
+        [12150, 49550, 119950, 250200, 544000, 546200, 9999999],
+        [24350, 99100, 199850, 304600, 543950, 614450, 9999999],
     ]
 )
 
-stdDeduction_2025 = np.array([15000, 30000])
-stdDeduction_2026 = np.array([8300, 16600])
-extra65Deduction_2025 = np.array([2000, 1600])
+# These are current.
+stdDeduction_TCJA = np.array([15000, 30000])
+# These are speculated.
+stdDeduction_nonTCJA = np.array([8300, 16600])
 
+# These are current.
+extra65Deduction = np.array([2000, 1600])
 
-##############################################################################
+###############################################################################
+# End of section where rates need to be actualized every year.
+###############################################################################
 
 
 def mediCosts(yobs, horizons, magi, prevmagi, gamma_n, Nn):
@@ -80,21 +93,25 @@ def mediCosts(yobs, horizons, magi, prevmagi, gamma_n, Nn):
         for i in range(Ni):
             if thisyear + n - yobs[i] >= 65 and n < horizons[i]:
                 # Start with the (indexed) basic Medicare part B premium.
-                costs[n] += gamma_n[n] * irmaaFees_2025[0]
+                costs[n] += gamma_n[n] * irmaaFees[0]
                 if n < 2:
                     mymagi = prevmagi[n]
                 else:
                     mymagi = magi[n - 2]
                 for q in range(1, 6):
-                    if mymagi > gamma_n[n] * irmaaBrackets_2025[Ni - 1][q]:
-                        costs[n] += gamma_n[n] * irmaaFees_2025[q]
+                    if mymagi > gamma_n[n] * irmaaBrackets[Ni - 1][q]:
+                        costs[n] += gamma_n[n] * irmaaFees[q]
 
     return costs
 
 
-def taxParams(yobs, i_d, n_d, N_n):
+def taxParams(yobs, i_d, n_d, N_n, y_TCJA=2026):
     """
-    Return 3 time series:
+    Input is year of birth, index of shortest-lived individual,
+    lifespan of shortest-lived individual, total number of years
+    in the plan, and the year that TCJA might expire.
+
+    It returns 3 time series:
     1) Standard deductions at year n (sigma_n).
     2) Tax rate in year n (theta_tn)
     3) Delta from top to bottom of tax brackets (Delta_tn)
@@ -102,12 +119,12 @@ def taxParams(yobs, i_d, n_d, N_n):
     Returned values are not indexed for inflation.
     """
     # Compute the deltas in-place between brackets, starting from the end.
-    deltaBrackets_2025 = np.array(taxBrackets_2025)
-    deltaBrackets_2026 = np.array(taxBrackets_2026)
+    deltaBrackets_TCJA = np.array(taxBrackets_TCJA)
+    deltaBrackets_nonTCJA = np.array(taxBrackets_nonTCJA)
     for t in range(6, 0, -1):
         for i in range(2):
-            deltaBrackets_2025[i, t] -= deltaBrackets_2025[i, t - 1]
-            deltaBrackets_2026[i, t] -= deltaBrackets_2026[i, t - 1]
+            deltaBrackets_TCJA[i, t] -= deltaBrackets_TCJA[i, t - 1]
+            deltaBrackets_nonTCJA[i, t] -= deltaBrackets_nonTCJA[i, t - 1]
 
     # Prepare the 3 arrays to return - use transpose for easy slicing.
     sigma = np.zeros((N_n))
@@ -124,23 +141,23 @@ def taxParams(yobs, i_d, n_d, N_n):
             souls.remove(i_d)
             filingStatus -= 1
 
-        if thisyear + n < 2026:
-            sigma[n] = stdDeduction_2025[filingStatus]
-            Delta[n, :] = deltaBrackets_2025[filingStatus, :]
+        if thisyear + n < y_TCJA:
+            sigma[n] = stdDeduction_TCJA[filingStatus]
+            Delta[n, :] = deltaBrackets_TCJA[filingStatus, :]
         else:
-            sigma[n] = stdDeduction_2026[filingStatus]
-            Delta[n, :] = deltaBrackets_2026[filingStatus, :]
+            sigma[n] = stdDeduction_nonTCJA[filingStatus]
+            Delta[n, :] = deltaBrackets_nonTCJA[filingStatus, :]
 
         # Add 65+ additional exemption(s).
         for i in souls:
             if thisyear + n - yobs[i] >= 65:
-                sigma[n] += extra65Deduction_2025[filingStatus]
+                sigma[n] += extra65Deduction[filingStatus]
 
         # Fill in future tax rates for year n.
-        if thisyear + n < 2026:
-            theta[n, :] = rates_2025[:]
+        if thisyear + n < y_TCJA:
+            theta[n, :] = rates_TCJA[:]
         else:
-            theta[n, :] = rates_2026[:]
+            theta[n, :] = rates_nonTCJA[:]
 
     Delta = Delta.transpose()
     theta = theta.transpose()
@@ -149,23 +166,26 @@ def taxParams(yobs, i_d, n_d, N_n):
     return sigma, theta, Delta
 
 
-def taxBrackets(N_i, n_d, N_n):
+def taxBrackets(N_i, n_d, N_n, y_TCJA):
     """
     Return dictionary containing future tax brackets
     unadjusted for inflation for plotting.
     """
     assert 0 < N_i and N_i <= 2, f"Cannot process {N_i} individuals."
-    # This 1 is the number of years left in TCJA from 2025.
-    ytc = 1
-    status = N_i - 1
     n_d = min(n_d, N_n)
+    status = N_i - 1
+
+    # Number of years left in TCJA from this year.
+    thisyear = date.today().year
+    ytc = y_TCJA - thisyear
 
     data = {}
     for t in range(len(taxBracketNames) - 1):
         array = np.zeros(N_n)
-        array[0:ytc] = taxBrackets_2025[status][t]
-        array[ytc:n_d] = taxBrackets_2026[status][t]
-        array[n_d:N_n] = taxBrackets_2026[0][t]
+        for n in range(N_n):
+            stat = status if n < n_d else 0
+            array[n] = taxBrackets_TCJA[stat][t] if n < ytc else taxBrackets_nonTCJA[stat][t]
+
         data[taxBracketNames[t]] = array
 
     return data

owlplanner/version.py

@@ -1 +1 @@
-__version__ = "2025.02.14"
+__version__ = "2025.02.19"

{owlplanner-2025.2.14.dist-info → owlplanner-2025.2.19.dist-info}/METADATA

@@ -1,6 +1,6 @@
 Metadata-Version: 2.4
 Name: owlplanner
-Version: 2025.2.14
+Version: 2025.2.19
 Summary: Owl: Retirement planner with great wisdom
 Project-URL: HomePage, https://github.com/mdlacasse/owl
 Project-URL: Repository, https://github.com/mdlacasse/owl
@@ -708,7 +708,7 @@ Description-Content-Type: text/markdown
 
 <img align=right src="https://raw.github.com/mdlacasse/Owl/main/docs/images/owl.png" width="250">
 
------
+-------------------------------------------------------------------------------------
 
 ### TL;DR
 Owl is a planning tool that uses a linear programming optimization algorithm to provide guidance on retirement decisions. There are a few ways to run Owl.
@@ -719,10 +719,10 @@ Owl is a planning tool that uses a linear programming optimization algorithm to
 Follow these [instructions](docker/README.md) for this option.
 
 - Run locally on your computer using Python code and libraries.
-Follow there [instructions](INSTALL.md) to install Owl from the source code and run it on your computer.
-
------
+Follow these [instructions](INSTALL.md) to install Owl from the source code and run it on your computer.
 
+-------------------------------------------------------------------------------------
+## Overview
 This package is a retirement modeling framework for exploring the sensitivity of retirement financial decisions.
 Strictly speaking, it is not a planning tool, but more an environment for exploring *what if* scenarios.
 It provides different realizations of a financial strategy through the rigorous
@@ -789,7 +789,7 @@ Other asset classes can easily be added, but would add complexity while only pro
 Historical data used are from
 [Aswath Damodaran](https://pages.stern.nyu.edu/~adamodar/) at the Stern School of Business.
 Asset allocations are selected for the duration of the plan, and these can glide linearly
-or along a configurable s-curve from now to the last year of the plan.
+or along a configurable s-curve over the lifespan of the individual.
 
 Spending profiles are adjusted for inflation, and so are all other indexable quantities. Proflies can be
 flat or follow a *smile* curve which is also adjustable through two simple parameters.
@@ -800,10 +800,10 @@ the statistical characteristics (means and covariance matrix) of
 a selected historical year range. Pure *stochastic* rates can also be generated
 if the user provides means, volatility (expressed as standard deviation), and optionally
 the correlations between the different assets return rates provided as a matrix, or a list of
-the off-diagonal elements (see the notebook tutorial for details).
+the off-diagonal elements (see documentation for details).
 Average rates calculated over a historical data period can also be chosen.
 
-Monte Carlo simulations capabilities are included  and provide a probability of success and a histogram of
+Monte Carlo simulations capabilities are included and provide a probability of success and a histogram of
 outcomes. These simulations can be used for either determining the probability distribution of the
 maximum net spending amount under
 the constraint of a desired bequest, or the probability distribution of the maximum
@@ -812,33 +812,36 @@ simulators, Owl uses an optimization algorithm for every new scenario, which res
 calculations being performed. As a result, the number of cases to be considered should be kept
 to a reasonable number. For a few hundred cases, a few minutes of calculations can provide very good estimates
 and reliable probability distributions.
-Optimizing each solution is more representative in the sense that optimal solutions
+
+Optimizing each solution is more representative than event-base simulators
+in the sense that optimal solutions
 will naturally adjust to the return scenarios being considered.
 This is more realistic as retirees would certainly re-evaluate
 their expectations under severe market drops or gains.
-This optimal approach provides a net benefit over event-based simulations,
+This optimal approach provides a net benefit over event-based simulators,
 which maintain a distribution strategy either fixed, or within guardrails for capturing the
- retirees' reactions to the market.
+retirees' reactions to the market.
 
-Basic input parameters are given through function calls while optional additional time series can be read from
+Basic input parameters can be entered through the user interface
+while optional additional time series can be read from
 an Excel spreadsheet that contains future wages, contributions
 to savings accounts, and planned *big-ticket items* such as the purchase of a lake house,
 the sale of a boat, large gifts, or inheritance.
 
 Three types of savings accounts are considered: taxable, tax-deferred, and tax-exempt,
 which are all tracked separately for married individuals. Asset transition to the surviving spouse
-is done according to beneficiary fractions for each account type.
+is done according to beneficiary fractions for each type of savings account.
 Tax status covers married filing jointly and single, depending on the number of individuals reported.
 
-Medicare and IRMAA calculations are performed through a self-consistent loop on cash flow constraints. Future
-values are simple projections of current values with the assumed inflation rates.
+Medicare and IRMAA calculations are performed through a self-consistent loop on cash flow constraints.
+Future values are simple projections of current values with the assumed inflation rates.
 
 ### Limitations
 Owl is work in progress. At the current time:
 - Only the US federal income tax is considered (and minimized through the optimization algorithm).
 Head of household filing status has not been added but can easily be.
 - Required minimum distributions are calculated, but tables for spouses more than 10 years apart are not included.
-An error message will be generated for these cases.
+These cases are detected and will generate an error message.
 - Social security rule for surviving spouse assumes that benefits were taken at full retirement age.
 - Current version has no optimization of asset allocations between individuals and/or types of savings accounts.
 If there is interest, that could be added in the future.
@@ -847,12 +850,12 @@ If there is interest, that could be added in the future.
 This means that the Medicare premiums are calculated after an initial solution is generated,
 and then a new solution is re-generated with these premiums as a constraint.
 In some situations, when the income (MAGI) is near an IRMAA bracket, oscillatory solutions can arise.
-Owl will detect these cases and inform the user.
-While the solutions generated are very close to one another, Owl will pick the smallest one
+While the solutions generated are very close to one another, Owl will pick the smallest solution
 for being conservative.
-- Part D is not included in the IRMAA calculations. Being considerably more, only Part B is taken into account. 
-- Future tax brackets are pure speculations derived from the little we know now and projected to the next 30 years. Your guesses are as good as mine.
-Having a knob to adjust future rates might be an interesting feature to add for measuring the impact on Roth conversions.
+- Part D is not included in the IRMAA calculations. Being considerably more significant,
+only Part B is taken into account. 
+- Future tax brackets are pure speculations derived from the little we know now and projected to the next 30 years.
+Your guesses are as good as mine.
 
 The solution from an optimization algorithm has only two states: feasible and infeasible.
 Therefore, unlike event-driven simulators that can tell you that your distribution strategy runs
@@ -867,7 +870,7 @@ assets to support, even with no estate being left.
 
 - Documentation for the app user interface is available from the interface itself.
 - Installation guide and software requirements can be found [here](INSTALL.md).
-- User guide for the underlying library to be used in a Jupyter notebook can be found [here](USER_GUIDE.md).
+- User guide for the underlying Python package as used in a Jupyter notebook can be found [here](USER_GUIDE.md).
 
 ---------------------------------------------------------------------
 
@@ -876,13 +879,14 @@ assets to support, even with no estate being left.
 - Image from [freepik](https://freepik.com)
 - Optimization solver from [HiGHS](https://highs.dev)
 - Streamlit Community Cloud [Streamlit](https://streamlit.io)
-- Other contributors: Josh (noimjosh@gmail.com) for Docker image code
+- Contributors: Josh (noimjosh@gmail.com) for Docker image code
 
 ---------------------------------------------------------------------
 
 Copyright &copy; 2024 - Martin-D. Lacasse
 
-Disclaimers: I am not a financial planner. You make your own decisions. This program comes with no guarantee. Use at your own risk.
+Disclaimers: I am not a financial planner. You make your own decisions.
+This program comes with no guarantee. Use at your own risk.
 
 --------------------------------------------------------
 

{owlplanner-2025.2.14.dist-info → owlplanner-2025.2.19.dist-info}/RECORD

@@ -1,17 +1,17 @@
 owlplanner/__init__.py,sha256=QqrdT0Qks20osBTg7h0vJHAxpP9lL7DA99xb0nYbtw4,254
 owlplanner/abcapi.py,sha256=LbzW_KcNy0IeHp42MUHwGu_H67B2h_e1_vu-c2ACTkQ,6646
-owlplanner/config.py,sha256=XFVcXFVpEuWXzybaijNGSTt72py3cYJ3oq0S1ujivl0,11702
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 owlplanner/logging.py,sha256=tYMw04O-XYSzjTj36fmKJGLcE1VkK6k6oJNeqtKXzuc,2530
-owlplanner/plan.py,sha256=sgQi0TD24Rmk_96M9AnJ72zKKmol0AKoM6CybAAQG1w,113088
+owlplanner/plan.py,sha256=FH16r5-VgpmNIntAcV4oxpDwORxWRmXqYpDIAmdUgwU,113561
 owlplanner/progress.py,sha256=8jlCvvtgDI89zXVNMBg1-lnEyhpPvKQS2X5oAIpoOVQ,384
 owlplanner/rates.py,sha256=TN407qU4n-bac1oymkQ_n2QKEPwFQxy6JZVGwgIkLQU,15585
-owlplanner/tax2025.py,sha256=PVteko6G9gjAT247GnTzAPUe_RaLnZUArFtdzf1dF3M,7014
+owlplanner/tax2025.py,sha256=B-A5eU3wxdcAaxRCbT3qI-JEKoD_ZeNbg_86XhNdQEI,7745
 owlplanner/timelists.py,sha256=tYieZU67FT6TCcQQis36JaXGI7dT6NqD7RvdEjgJL4M,4026
 owlplanner/utils.py,sha256=HM70W60qB41zfnbl2LltNwAuLYHyy5XYbwnbNcaa6FE,2351
-owlplanner/version.py,sha256=_MJp2MbS5Atcm2yUx56j3cirNAIGlUxcU_Vuv3WHoV8,28
+owlplanner/version.py,sha256=Hzg91vFrm20nzeHuT9pblaGfwSjRgv3vebQPbImE-iw,28
 owlplanner/data/__init__.py,sha256=47DEQpj8HBSa-_TImW-5JCeuQeRkm5NMpJWZG3hSuFU,0
 owlplanner/data/rates.csv,sha256=6fxg56BVVORrj9wJlUGFdGXKvOX5r7CSca8uhUbbuIU,3734
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-owlplanner-2025.2.14.dist-info/licenses/LICENSE,sha256=IwGE9guuL-ryRPEKi6wFPI_zOhg7zDZbTYuHbSt_SAk,35823
-owlplanner-2025.2.14.dist-info/RECORD,,
+owlplanner-2025.2.19.dist-info/METADATA,sha256=P2d1EnFOkSlwiiz0FUNO2nAHXu54IPj8-kPLU1-4IZo,53506
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+owlplanner-2025.2.19.dist-info/licenses/LICENSE,sha256=IwGE9guuL-ryRPEKi6wFPI_zOhg7zDZbTYuHbSt_SAk,35823
+owlplanner-2025.2.19.dist-info/RECORD,,