New User Video 2 of 5: Creating a "Core Plan"

welcome to getting started with income

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lab a video series that jump starts

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great retirement income planning and

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management in the first video we covered

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how by default income lab answers the

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question how much can I spend and how

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the process begins by specifying all of

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the resources that a household will use

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to fund

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retirement just a few more steps will

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turn a resources only plan into a full

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core retirement income plan which will

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serve as the Baseline for all other

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planning in the app first if leaving a

Adding Legacy Goals

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portfolio balance as part of a financial

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Legacy is a high priority add this

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Legacy goal to the core plan if a legacy

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is a nice to have but not a high

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priority you can leave this at

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zero adding a legacy goal will reduce

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the spending capacity during retirement

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because the app knows the client will

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have to spend less now if they want to

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fund that future

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goal second add any important lumpy or

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temporary expense items to the plan

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we're not talking about the basics of

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everyday living like groceries

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transportation and so on instead these

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are things like paying off a mortgage a

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home purchase or planning to self-fund

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Future long-term care

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expenses to enter a mortgage at a

Other Variable Expenses

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liability and be sure to include the

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payments as an other SLV variable

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expense if you don't know the mortgage

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balance you can just add those payments

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in the other variable expenses section

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and that's where you would also enter

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other itemized variable

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expenses just as with the portfolio

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Legacy goal these other variable

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expenses will reduce what can be spent

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on everything else in life for example

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if I add a spending goal of gifting

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$1,000 a month to a grandchild for four

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years to help pay for college the plant

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spending capacity for today will go down

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in order to fund this future

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expense to see the components of monthly

Spending Capacity Card

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or annual spending click on the spending

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capacity card or go to life

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Hub it's important to understand that

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income lab plans don't require any

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expenses at all but if you do enter

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expenses it's crucial to understand that

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other variable expenses will typically

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change a plan's guard rails and spending

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capacity but in contrast Baseline

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expenses will have no effect on a plan's

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guard rails and spending capacity if

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you're asking how much can I spend with

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income lab Baseline expenses are in the

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plan only as a comparison Point as a way

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to understand how what clients can spend

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compares to what they would like to

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spend the final optional step then is to

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to add a bottomline baseline spending

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goal or desired income to the plan or to

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itemize Baseline expenses so that you

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can compare this Baseline spending goal

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to the spending that the household can

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actually

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afford you can see all of the pl

Income Sourcing Graph

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resources in the income sourcing graph

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accessed from the cash flows tab you can

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see the plan's expenses in the expense

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details graph you can also view all of

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the pl components

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across all of the years of the plan in

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life

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Hub so that's it now you have a core

Conclusion

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retirement income plan from here you can

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take many roads including exploring a

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range of possible spending levels and

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adjustment plans presenting the plan to

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clients AB testing different Social

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Security Options or doing a tax smart

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distribution

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analysis check out the rest of this

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video series for help with these next

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steps