How to Model Dividend Income in a Plan

0:00 Welcome, this video will walk you through how to add in dividend income and model dividend income- growth inside your income lab plans.
0:08 To begin, first select your household. If this isn't existing- household. Click the pencil icon to get to your plan edits.
0:18 Then find the other income section in the other- you can add any dividend income streams into your plans. I already have an example pre-built here, so I'll walk you through how we add that input into the plan.
0:33 So for- first, we can give it a name. Here I've called the dividend income. You can call this whatever you'd like, based on your client's dividend income.
0:43 Then you want to put the amount. Best practice here is to put a monthly amount. out. However, if you'd like to put an annual amount, well, you can do that as well.
0:54 Then select the ownership, or who it's earned by. and The important thing here for dividend income is to select the tax treatment as investment income.
1:03 Then click the gear icon. If you're modeling a specific growth rate on the dividend income, we want to change the inflation treatment from you not adjusted for inflation or adjusted for inflation to custom.
1:17 And then from the custom option, you can put in the custom rate or the custom. 1% you'd like to see the dividend income grow by.
1:26 Below there, you'll see that because we have the investment income. and selected as the tax treatment. We can then split up how the dividend income should be taxed.
1:35 So entering an amount that should be considered for ordinary income. A certain amount that we'd want considered for long-term gains.
1:41 And then any amount that we'd considered not taxable or tax exempt. Below. Here's where we can set the start and end dates of one we want the definite income to start and to stop.
1:51 If, for example, you wanted to model an in- annual income stream instead of a monthly income, you would just same the time period for a month, two years, and that's essentially how you would model an annual dividend.
2:02 Income stream versus the monthly. But again, as I mentioned, the best practice that we find is putting the dividend income stream as a monthly income.
2:10 Once you're done, you can click save and that's it. That shows you how to add any dividend income stream. . You can add as many line items as you need, so that should cover your basis if you're modeling more simple or complicated scenarios.
2:26 Thank you for viewing this video. Please reach out to our team if you have any questions.