Advanced Settings for Social Security Modeling

Welcome. This video will walk you

0:02

through one of our latest features in

0:03

the Income Lab software, the ability to

0:06

now have advanced settings to better

0:08

customize Social Security modeling. So,

0:10

to get to the new feature, we want to go

0:13

to the advanced settings by clicking the

0:15

three dot icon of any of our plans and

0:17

then click advanced plan settings. And

0:20

then you'll now see the Social Security

0:22

section here. The first option you'll

0:24

see here in this uh section is the

0:26

ability to include a future reduction in

0:29

benefits for social security. So to

0:31

factor in potentially social security

0:33

going down later in the plan, you want

0:34

to check this box and then you'll see

0:37

the year month and year in which you can

0:38

model for the date of that reduction.

0:41

You can either input the month and year

0:43

here or use the calendar icon and then

0:45

you can select the reduction amount. So

0:47

how much are we expecting social

0:48

security to go down by when we hit that

0:50

date? Next, you'll also see you can

0:53

factor in the time value of the money.

0:55

So, essentially, as you're looking at

0:56

social security, we have many users who

0:58

want to factor in that a dollar today is

1:00

worth more than a dollar tomorrow. Um,

1:02

and so to reflect this uh on the break

1:05

even calculations for social security

1:07

and in the total lifetime value

1:08

calculations for social security, you

1:10

can put in a specific interest rate or

1:12

discount rate uh here um that we will

1:16

factor in. It's important to note uh

1:19

this interest rate is uh excluding the

1:22

inflation. So we will already factor in

1:24

inflation in these calculations. This is

1:26

on top of the inflation calculations.

1:29

Next here is the social security age

1:30

option. There's a few unique instances

1:32

where a client is born the first day of

1:34

the month. In these cases, social

1:36

security actually considers them to be

1:38

born the last day of the previous month,

1:40

which can mess with some of the timing.

1:42

So if you have those instances, we now

1:44

have this box here where we can select

1:45

that this person, Tim in this case, was

1:47

born on the first of the month. And so

1:49

we'll actually calculate that their

1:50

social security starts, you know, the

1:52

previous month based on when they want

1:54

to say they started. Once you're done,

1:56

you can hit save and then get right to

1:59

uh your plan by then just scrolling up

2:01

and going hitting the back button.

2:04

That's it. Thank you for viewing this

2:06

video. We hope this helps and please

2:07

reach out to our team if you have any

2:09

questions.