Entering expenses and setting priority levels - US

From the Dashboard select the (+) and then select Expenses

 

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Different types of expenses

  • Recurring “Multi Year” expenses. Expenses recur starting and ending with a pair of events selected on the Timing tab. (e.g. yearly living expenses) 
  • One-off “Single Year” expenses.
  • The special Legacy expense type remains as an option for scheduling future gifts and chartable giving.

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The types of expenditure (multiyear, single year, and legacy) are indicated on the Dashboard.

 

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Once you select the appropriate expense type, you will find for all types a new prioritization slider. This slider will allow for expenses and goals to be reviewed and reprioritized at any time, at any point in the planning process, unlike today, where priority is determined based on the type of expense you are entering and cannot later be changed.

 

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This slider can be used at any time for any type of expense or goal to review and possibly change its priority.

The priority slider has calibration points beneath each priority level, allowing you to set an expense or goal by broader level, as a basic (high), leisure (medium), or luxury (low) level goal overall.

Within these three broad priority levels, you also have the option to further specify whether a basic expense, for example, is a high, medium, or low-level essential expenditure. The software will then follow prioritization as it fulfills future annual expenditure.

Note, Custom Priority Levels – The prioritization slider has been designed with customization in mind. The names of expense priorities could be customized for enterprises, aligning them with the terminology you use when discussing goals with your clients.

Example of entering an expense

Let's say, for example you would like to enter your clients monthly living costs

Put the expense in the name of the person or persons responsible for it. 

Enter the name you would like the expense to be listed under (e.g. General Living Expenses)

Enter the Monthly or Annual amount 

Since this is a basic expense we will leave this at the basic priority level. If we were entering Travel we might list it as "Leisure" but this would be up to the individual adviser to determine. 

Once you have entered the basic information move to the timing screen.

 

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From the Timing screen you will note that the Expense will automatically schedule to terminate at the mortality event, on this screen you can leave that as is or link the start and end events to different events on the timeline. Once completed click done to save. 

 

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You can also use the Steps feature to model these expenses stepping up or down over the year. 

Once you've clicked "done" you can access the expenses from the Dashboard. Amounts will be listed as annual on the Dashboard. 

 

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