Goals, Expenses - Expense Frequency option to schedule regularly recurring lump sum expenditures, such as a car purchase every 4 years **AdviserGo, All Regions**

Regularly recurring lump sum expenses and goals – expenditures that occur on something other than an annual basis, such as the purchase of a new car every four years – can be set using a combination of start and end events and the special Expense Frequency setting on the Timing tab.

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Note - The Expense Frequency (recurrence) option is available for Pre-Retirement and Retirement goals as well as Basic, Leisure, and Luxury expenses. This option is not available for Milestone expenses or goals, which are assumed to be one-off expenditures, nor is it available for Education goals or expenses, which are assumed to recur annually.

1. To schedule a recurring lump sum expense or goal, first enter the essential information about it on the Basics tab.

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2. Next, Go to the Timing tab. On this tab you will first set the overall timing of the expense or goal.

Tip - The default timings for each type pf Goal are merely suggestions. For example, you could select a Pre-Retirement or Retirement goal and still start and end that goal at any time in the future, using any events selected form the timeline. Moreover, you can add and select events to the timeline on the fly as you add the goal.

3. Select a start event to indicate when the expense or goal will first occur in the plan. If this is to be in the first year of the plan, simply select the Start event.

Either - Click the event icon and select “Set as Start Event”.

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Or - Select the event icon for in the timeline and drag and drop the icon into Expense/Goal Starts box above the timeline.

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Adding Events - If an event is not already in the timeline for the year you want to begin or end the expense or goal, simply double click any bar above the timeline. The add Event dialogue will display allowing you to add a new event to the timeline on the fly.

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4. Also select an end event for the expense. The end event will specify when the expense or goal is to be no longer active in the plan.

Either - Click the event icon and select “Set as End Event”.

Or - Select the event icon for in the timeline and drag and drop the icon into Expense/Goal Ends box above the timeline.

Again, if an event is not already in the timeline for the year you want to begin or end the expense or goal, simply double click any bar above the timeline. The add Event dialogue will display allowing you to add a new event to the timeline on the fly.

 

With a start event and an end event selected, you have set the overall timing of the expense in the plan. Now you can alter its frequency.

5. On the Timing tab, scroll down, below the timeline, where you will find an Expense Frequency setting. The default is 1, meaning the expense will recur every year from its start event until its end event.

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Note - The Expense Frequency (recurrence) option is available for Pre-Retirement and Retirement goals and Basic, Leisure, and Luxury expenses. This option is not available for Milestone expenses or goals, which are assumed to be one-off expenditures, nor is it available for Education goals or expenses, which are assumed to recur annually.

6. If this is to be a recurring lump sum expenditure, enter in the Expense Frequency field the interval (the number of years) in which the goal/expense will recur.

For example, if a car is to be purchased every four years following the first car purchase (the start event), enter a Expense Frequency of 4 (years). Following the first purchase, the expense will recur every four years until the end event. If the end event is positioned less than four years after the last regular purchase, the expense would effectively end with the last full interval.

7. Click Save or Update to save you changes.

Following the first purchase, the expenditure will recur in the interval set until the end event. If in the final interval the end event is less than the full interval, the expense or goal would effectively end with the last full interval.

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The increases shown above with each car purchase, scheduled every four years until the end event, are due to the Inflation Rate set on the expense.