Timing - Set the start and end of the income
The Timing of the Employment and Other Income is located on the right side of the screen. Selections on this menu are used to set the time span over which the income will be earned.
Unless you ticked “already retired” when first setting up the client case, the Employment Starts and Employment Ends events are selected by default, indicating that this salary will be earned from the beginning of the plan (the Start event) until your client’s planned retirement, the earner's Retirement event.
The period over which these earnings are expected are also highlighted in the timeline as are the events that set the beginning and end of the earnings.
Note – As a rule, items such as earnings, are set to start at the beginning of the year of their start event. The same applies to their end. John’s salary, in this case, will end at the beginning of the year in which he turns 65, based on the selected end event.
AdviserGo does not do partial year calculations in pro rata amounts. Only full year calculations are performed to keep things focused on big picture, broad stroke financial planning.
Selecting alternative start or end events - How to begin or end incomes in other years of the plan
You don’t have to stick with the software’s default timing for incomes.
If an alternative start or end event is already on the timeline, either:
Drag and drop the event from the timeline below into the Employment Starts or Employment Ends boxes above the timeline, or
Click the event icon and select Set as Start Event or Set as End Event.
Tip, One-off Incomes - If the income is a one-off, only to be earned in a single year of the plan, use the same event as the income's Start Event and End Event.
How to add an event to the timeline on the fly, for use as an alternative start or end event for the income
If you ever need to begin or end an income in a different year of the plan, events can be easily added to the timeline on the fly, as you enter or edit the income.
Viewing the income’s Timing tab,
Double click any bar above the timeline.
The add Event dialogue will display. Enter a Name for the event and choose an appropriate icon to represent it in the timeline (as pictured below). The event will be assumed to have the same owner as the income it will be used to schedule.
If you need to reposition the event, select the new event’s icon, and drag and drop it up or down the timeline.
As you move the event, the future age of its owner will be shown beneath the timeline – the owner’s age in the event’s original position and the owner’s age for the year over which the event is repositioned. You can also easily reposition this event later, on the Timeline screen.
To the right side of the dialogue, select whether the event will be used as the income’s Start Event or End Event, as shown below.
Repeat these steps if you need to add a second alternative event to begin or end the income. Click Done, top right, only after you’ve completed all your entries for the income.