welcome this video will walk you through
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how to model a future long-term care
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expense inside your income lag plans
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first you want to go to your plan edits
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by clicking the pencil icon in the top
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right of your
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screen then we want to find the expense
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section if you are not seeing the
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expenses section here then you'll see a
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plus sign on the right you can click
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that and then you'll see the tab to
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select
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expenses from there we want to select
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other variable expenses um in income lab
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Baseline expenses are considered normal
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expenses happening through the entirety
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of the plan because long-term care
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starts at the end of the plan or you
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know during the last few years of the
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plan we want to call that other SL
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variable expense I've had an example
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already laid out here so I'll walk you
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through how we get that into the
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software so first we can give it a name
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how LTC long-term care however you'd
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like to name it select the ownership
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then you want to select the type as
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medical and then we want to put in the
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amount from there we want to hit the
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gear icon you confirm that the expense
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is tax deductible and then set up the
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recurrence so we can either have it be a
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recurring or a onetime cost most often
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long-term care is recurring so we'll put
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the recurrence here then we want to
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select the begin date option because
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long-term care is unique we gave you a
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new new Option here where you can select
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to have it start based of the end of the
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plan so we can say you know start from
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the end of the plan two years before the
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end of the plan so here you know we can
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if we want to be four years three years
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we can do it that way if we want to be
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you know the last three months of the
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plan we can set it up this way but this
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essentially allows you to tell the
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software hey you know start this
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long-term care expense the last two
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years of the plan and then with the end
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date we either want to have it end at
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the individual person's death or if it's
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covering both people choose the end at
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second spouse's death option here if
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there's any survivorship tied to it you
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can use the option below to say yes it's
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a joint plan and the expense will change
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if one spouses passes away and then you
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can put in those options below if not
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you can either just say no or just leave
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the values the
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same once you're done hit
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save if you are also trying to model
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long-term care benefits so the income
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coming in from the insurance you can go
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to the income section here click other
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income we can put it in as long-term
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care
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income put the amount the ownership and
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then here you want to put it as a not
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taxable income source so that way the
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software knows that you know while this
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income source is coming in as part of
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the long-term care income benefits that
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it is not taxable so that way we are not
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calculating taxes from that since it's
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coming from that
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insurance and then similar thing here
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use the gear icon um use the same
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options you know begin last two years of
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the plan right second about step just
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making sure that all your uh inputs
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align and then hit save and then once
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you're done here you can hit
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finish once the plan loads there's a few
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areas where you can see that long-term
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care expense first in your cash
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flow when we look at our income we could
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see that we have this bump in income
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later to cover those expenses if we go
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to expense details here we can see that
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called out long-term care here at the
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end or in our table view for our
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long-term care all the way there at the
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bottom in those last two years and then
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as well in live Hub if you go in live
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Hub you will also see an icon here at
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the end on your timeline showing the
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years where your long-term care and your
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uh starts as well as when those benefits
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kick in and then if we go to that year
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in life Hub by clicking the blue section
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the Blue Line underneath the icon again
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we could see here's that expense here as
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well as here's that income coming in to
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mash for that
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expense we hope this helps thank you for
4:06
viewing this video uh please reach out
4:08
to our team if you have any questions
