When expenses are entered into Voyant for a couple, the software will make two assumptions:
1) The expense will be co-owned by the couple and
2) The expense will be incurred for the duration of the entire plan, from the start to the end of the timeline. This of course is not always the case.
Co-owned expenses, for example, are assumed to continue after the death of the first owner, which can come into play when running life insurance need analyses and creating early mortality scenarios. Ownership is set on the People panel to the right side of the expenses screens. If you have an expense that is owned by one person – i.e. one that should end if the owner were to die before the end of the plan – deselect (untick) the name of the person who should not be associated with the expense.
If the expense should be timed differently, perhaps stopping earlier than the end of the plan, set it as such on the Time panel to the right side of the expenses screens, next to the ledger. Select the panel’s Event tab.
The Event tab will show a list of events from the planning timeline.
Click to the left of the Start event, if the expense is active beginning at the start of the plan. Select a later event in the timeline if the expense is to begin in a future year of the plan. You may need to add an event for future timing - more about that in a moment.
A green dot will appear next the event noting it as the ‘start event' for the expense.
If one of these events coincides with the year the expense should end, select it. A red dot will appear next to the event setting it as the end event of the expense. This is when the expense will cease.
Tip: If an event does not exist on the timeline for the year of the expense one can easily be added by clicking the New Event button located on the bottom of the Time panel, Event tab.
The add event dialogue will display. Enter a Name for the event, the Age of the owner in the year it will occur, and select the name of the Owner. Click Add. The new event will be added to the timeline and will now appear on the Time > Events panel.
Aside from annual inflationary increases, future changes to expenses can also be scheduled to occur at events on the expense screens' Advanced Settings > Step Up / Step Down panel.
To be used in stepping, the event must fall within the expense’s overall timespan, as set on the Time panel.
Enter the full stepped amount. When entering a future steps in expenses, be sure to enter the full, edited amount and not merely the difference between the old expense and new.
Be consistent. If the expense is entered as an annual amount in the main fields on screen, be sure that the adjusted amount you enter on the Step Up / Step Down panel is also an annual amount and vice versa for monthly expense amounts.
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