Known Incomes are known cash flows during retirement that will be used for retirement income and may include rental property income, annuities, part-time work or other forms of such income.
The prompts are briefly discussed below:
Account Information
Account Name
Enter the name of the account.
Owner
Select the owner of the account (only appears if there is a spouse configured).
Payments
# per Year
Select the number of payments per year. Note that the number of payments must either be 1, 2, 3, 4, 6, or 12.
Value
Enter the value of each payment.
Rate of Growth
Before Retirement
If the payment grows between now and retirement, enter the annual growth in the payment.
After Retirement
If the payment grows during retirement, enter the annual rate of growth.
Income Period
Starting Method
Select the method for starting the known income:
Owner's Retirement: The income stream will start at the owner's retirement date.
Today: The income stream is current income.
First retirement: The income stream starts at the first retirement of the client or spouse.
Both retired: The income stream starts once both the client and spouse are retired.
First Death: Income starts at the earliest life expectancy of either the client and/or spouse.
Owner's Age: Income starts at a specific age. Enter the value in the Starting Value prompt.
Date: Income starts at a specific date. Enter the value in the Starting Value prompt.
Starting Value
If the Starting Method requires data input (i.e. if the Starting Method is either 'Age' or 'Date'), enter the corresponding value here.
Ending Method
Select the method for ending the known income payments:
Owner's Death: Payment ends at the account owner's life expectancy.
Both Deceased: Payment ends when both parties are deceased.
Second Retirement: Payment ends at the retirement of the second individual.
First Deceased: Payment ends upon the first death (does not depend on ownership).
# of Years: Payment ends after a specific number of years.
Specific Date: Payment ends at a specific date in the future.
Ending Value
If the Ending Method requires data input (i.e. if Ending Method is either '# of Years' or 'Specific Date'), enter the corresponding value here.
Pre-Retirement Distribution Method
If the known income stream starts before retirement, this determines what happens with the funds prior to retirement. One of two options may be selected:
Ignore: If the income starts before the stated retirement age and is not being accumulated for retirement select ignore. The payments will be considered as a source of retirement income based on the starting period selected.
Save for retirement: The current cash flow is saved for retirement. The cash will be saved in the 'Additional Savings' account (with the rates of return listed on the top of the 'Other Accounts' page) and distributions occur as funds are needed.