Life Hub New User Video 2 of 3 - Building Plans in Life Hub

welcome to getting started with life Hub

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there are several ways to build a plan

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with life Hub if you have certain

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Integrations you can start with a

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household import of data from other

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software or data sources but if you

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don't have those integration set up yet

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a good place to start is with quick

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create here you can quickly add all of

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the important ingredients investment

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accounts salaries Social Security and

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pensions as well as other assets and

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liabilities with quick create you can be

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often running in just a few

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minutes we can now refine the plan by

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editing things like income and expense

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timing asset allocation and more from

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within life

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Hub alternatively you can build a plan

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via the standard route this starts with

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some basic information on the household

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and then allows you to enter detailed

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information on assets and inome income

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you can add categories like expenses

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savings and insurance to the plan from

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the plus

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menu life Hub plans don't require you to

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enter expense information that can be a

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little confusing if you're used to other

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planning software the first question

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that generalized planning or

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accumulation planning software typically

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asks is how much would you like to spend

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in

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retirement in contrast when you're

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building a life Hub plan the first

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question the software Answers by default

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is how much can I

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spend that means that you don't need to

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start with a budget or a feel for client

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spending goals that difference can be

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surprising but it might help to notice

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that the question how much can I spend

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in retirement is a bit like asking how

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much do you earn in your working years

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and it's a question that can be answered

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before exploring how much a household

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actually spends or would like to spend

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don't worry if you do know how much

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clients spend or would like to create a

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plan that zeros in on a particular net

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spending level we'll cover that

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later the first step in building a plan

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is typically to include all of the

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income and assets that fund life now or

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will fund life in retirement investment

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accounts Social Security pensions and so

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on if someone isn't yet retired be sure

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to include current wages and any saving

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they're doing to investment accounts

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the best practice here is to enter

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things as realistically as possible

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often that means treating them as

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monthly not

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annual of course if an income stream or

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Savings Plan really is happening

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annually or quarterly go ahead and enter

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it that

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way it's also important to choose the

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right account type for each investment

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account and set asset allocations and

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any specific restrictions on the

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accounts for example if a 401k is not

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available while the empy employee is

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still working include that in the plan

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if clients have non-qualified Deferred

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Comp or inherited IAS that are

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Distributing funds over a certain period

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of time include that as

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well next we add Legacy and spending

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goals if leaving a portfolio balance as

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part of a financial Legacy is a high

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priority add the Legacy goal in the

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plan's advanced

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settings if you add a legacy goal the

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spending capacity in retirement will

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beow lower because the app knows the

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client will have to spend less if they

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want to fund that

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goal spending goals in life Hub come in

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two flavors Baseline and other variable

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other variable expenses are significant

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lumpy or temporary expense items we're

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not talking about the basics of everyday

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living like groceries transportation and

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so on instead these are things like

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paying off a mortgage a home purchase or

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planning to self-fund Future long-term

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care to enter a mortgage add a liability

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and be sure to include the payments as

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an other variable expense if you don't

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know the mortgage balance you can just

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add the payments in the other variable

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expenses

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section just as with the portfolio

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Legacy goal other variable expenses will

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reduce what can be spent on everything

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else in life for example if I added a

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spending goal of gifting $1,000 a month

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to a grandchild for 4 years to help pay

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for college the pl spending capacity in

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retirement will go down in order to fund

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that gifting Baseline expenses are

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different if you're building a how much

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can I spend plan Baseline expenses will

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have no effect on spending capacity in

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retirement if you're asking the app how

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much someone can spend in retirement

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Baseline expenses are just there as a

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way to understand how what clients can

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spend compares to what they would like

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to

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spend if on the other hand you're

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building a how can I spend X plan you'll

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be targeting the plan's Baseline

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expenses net of taxes and net of other

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variable

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expenses you can enter Baseline expenses

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in two ways on the expenses tab either

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as a bottom line total or

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itemized this is also where you can

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toggle the primary question of the plan

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between how much can I spend and how can

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I spend

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X here's an example in this plan I've

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added $10,000 a month in Baseline

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expenses now this household's resources

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could actually support quite a bit more

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and here we see that there's a surplus

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in the available income that just means

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that if these clients spent what they

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could spend they'd have some extra

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spending

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money but if I switch this plan to

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Target that $10,000 a month the software

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will estimate how much needs to be drawn

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from account so that we can fund all and

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only the expenses in the plan plus

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taxes to review you can build a life Hub

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plan by importing data via an

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integration by using quick create which

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takes you to life Hub quickly for

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additional fine-tuning or by using the

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standard

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route typically you'll want to start

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with household resources and then add on

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Legacy and expense

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goals there are two kinds of expenses

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other variable which are used for

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significant temporary or lumpy spending

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and Baseline which are steady consistent

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expenses expense planning is however

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entirely optional in life

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Hub finally you can build two kinds of

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plans in life Hub a what can I spend

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plan which figures how much a

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household's resources could support and

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a how can I spend plan which targets

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Baseline expenses net of taxes and net

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of other variable

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expenses in the next video we'll wrap up

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with some more advanced topics