Transcript

In this video, I’m going to demonstrate how to enter expenses and goals into a financial plan, show how they appear on the charts, and explain the difference between the two.

I’ll start by entering a basic expense that runs for the whole plan to cover Julia’s living costs. Then, I’ll add a luxury travel goal for the first ten years of Julia’s retirement, when she would like to take annual cruises.

Setting Up Events on the Timeline

First, let’s check the timeline.

• For basic expenses, we’ll use the existing Start and Mortality events since they span the full plan.

• For luxury travel, we’ll use the Retirement event as the starting point, and then create a new event called “End of Luxury Travel” at Julia’s age 75 (year 2055).

These events act as placeholders until we assign values.

Entering a Basic Expense

From the Dashboard, I’ll select + → Expenses and choose Multi-Year Expense.

• Name: Basic Expenses

• Amount: $54,000 per year

• Category: Basic (appears in the blue line of the Cash Flow chart)

• Inflation: Uses the plan setting of 2.5% (so $54,000 in Year 1 becomes $55,350 in Year 2, and so on).

• Timing: Start of Plan → Mortality

This expense now shows as increasing each year with inflation.

Entering a Goal (Luxury Travel)

Next, from the Dashboard, I’ll select + → Goals.

• Name: Luxury Travel

• Amount: $30,000 per year

• Category: Luxury (appears in the black line of the Cash Flow chart)

• Timing: Retirement → End of Luxury Travel

This goal inflates each year until the event ends.

Expenses vs. Goals

Here’s the difference:

• Expenses represent ongoing or essential costs, such as food and housing.

• Goals are trackable, client-specific objectives, like luxury travel or education funding.

On the chart:

• The blue line shows basic expenses, taxes, and debts.

• The black line adds in luxury and discretionary goals.

Adjusting the Timeline

Events are flexible—if I move the End of Luxury Travel event from age 75 to age 80, the travel goal extends automatically, and the chart updates to reflect this.

Recap

In this video, we:

• Added the necessary events to the timeline.

• Entered a basic expense for the full plan.

• Entered a luxury travel goal for the first 10 years of retirement.

• Reviewed the differences between expenses and goals.

• Saw how events can be shifted to adjust timing.

This process allows you to distinguish between everyday expenses and client-specific goals, giving a clearer picture of the financial plan.

Thank you for watching.