Smoothing & Trimming | Wealth Ladder Guide

Core maintenance worksheet

Smoothing & Trimming Worksheet

Use a 3-year Core average to determine when growth may safely replenish Liquidity.

Smoothing helps prevent one unusually strong market year from triggering an excessive transfer from Core.

A measured replenishment process

Each value is the Core Market Value before trimming at that year's annual review.

Year 1 Core Value

Year 2 Core Value

Year 3 Core Value

3-Year Smoothed Core Value$960,000$900,000 + $960,000 + $1,020,000 ÷ 3

The smoothing baseline uses the previous three pre-trim Core values so prior trims do not artificially lower the benchmark for future trimming.

Enter the Core Market Value before any trim is taken this year.

Current Core Value

Core is above its smoothed level$10,000Excess Core Growth

Only this amount above the smoothing baseline is eligible for trimming.

The more depleted Liquidity becomes, the larger the portion of excess Core growth used to rebuild it.

Current Liquidity

Target Liquidity

Liquidity Coverage47.6%$90,000 ÷ $189,000

Selected Trim Rate75%Less than 50% coverage

Actual Trim is the smaller of the calculated trim and the amount needed to restore Liquidity to its target.

Your Trim

$7,500Core is above its smoothed level

Liquidity After Trim$97,500

Core After Trim$962,500

$970,000 Current Core − $960,000 3-Year Smoothed Core = $10,000 Excess Core Growth

$10,000 × 75% Trim Rate = $7,500 Calculated Trim

$5,000 transferred from Core to Liquidity

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