How to use steps - US

Using the Steps feature

The step option allows you to alter the amount of an expense, income, savings contribution, growth rate etc. at a specified event during the time span of that item.  The event must fall within the time span.

Let's use expenses as an example.  When an expense is added, the timing is automatically assumed to be the start of the plan to the retirement event.

However what if your client has made it clear that they would like to reduce their expenses in retirement? This is a great example of where steps can be really helpful. 

In this example we have a client who has stated that their current pre-retirement expenses are $10,000 per month. But, in retirement they would like to scale that back to $7,000.

From the basics screen of the expenses you would select the "Steps" tab.

 

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Then select "Add Step".

 

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Enter the stepped down living expenses amount of $7,000 then click on the "timing" tab.

 

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They have stated that they would like to step down their expenses at the first retirement event so click the first retirement event, click "Set as Step Timing". Then click done to save. 

 

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This will take you back to the timeline screen of the expense where you will see the new step. Click "done" again to exit and go back to the Dashboard.

 

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This will ensure that the clients expenses are reduced in their retirement years.