Justin

Justin Fitzpatrick

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Handling Rental Properties and Rental Income in a plan

Many financial plans include investment properties and rental income. Entering a rental property and its associated income resources correctly in a plan involves getting the asset and the income stream right. Entering Rental Income Rental income should be entered as an item in the “Other Income” section of the plan. Typically, you'll enter this as a

What tax filing status options does Income Lab cover?

Any Income Lab plan with only one person in it will automatically be modeled as subject to ‘Single’ tax brackets, and any plan with two people in it (a joint plan) will be modeled as subject to ‘Married Filing Jointly’ tax brackets. If one person in a joint plan has a specified date of death before the end of the plan, then the modeled tax brackets

How does Income Lab model state income tax?

Personal income tax at the state level can be a very important part of some retirees' expenses. Income Lab strives to model all state personal income tax structures that are likely to affect retirees and workers. This includes correctly modeling tax rates, thresholds, deductions, and exemptions, especially as they relate to retirement income. While

How can I annotate in-app during a meeting?

Sometimes, when presenting an Income Lab plan to a client, advisors want to be able to “mark up” the screen with highlighting, underlines, shapes, and even writing. Luckily, in today's world, this is easily accomplished. While the Income Lab software itself doesn't offer this functionality, there are many good options that work well with Income Lab

Are Income Lab guardrails based on Guyton-Klinger guardrails?

Income Lab Risk-Based Guardrail are not Guyton-Klinger Guardrails (and that's a good thing!) The first type of “guardrails” for retirement income that many people encounter are Withdrawal Rate Guardrails, such as those proposed by Jonathan Guyton and William Klinger in a series of articles in the early 2000s (the so-called “Guyton-Klinger Guardrails

Why does adding opportunity cost change lifetime Social Security benefits so much?

Adding an Opportunity Cost (or, “discount rate”) to lifetime Social Security benefit calculations can have a large effect on the calculation, even if the opportunity cost is fairly low. The reason is that, over a long period of time (such as a 20-30+ year retirement), the opportunity cost compounds. For example, $1 received 35 years from now at a 0%

How does Income Lab incorporate inflation into tax calculations

Each year, certain tax amounts and thresholds are adjusted for inflation. Since future inflation adjustments are not known ahead of time, it is important to project these values in a plan using the plan's assumed inflation rate(s) to properly project tax calculations in the future.  For tax values that do not adjust for inflation over time (i.e., va

How are the statistics on the Insights dashboard calculated?

The Insights dashboard shows a variety of statistics and measures for each year of the plan. Below, you'll see how these measures are calculated. Stats Section All statistics shown in the Stats section of the Insights dashboard reflect total annual numbers. Beginning-of-year values are used for balances, and the sum of all cash flows is used for inc

How are tax calculations adjusted for inflation when projected into the future?

Each year, certain income tax amounts and thresholds are adjusted for inflation by the US Federal government (and certain states, if the state has personal income tax). Since future inflation adjustments are not known ahead of time, Income Lab software projects these future tax values in a plan using the plan's assumed inflation rate(s).  However, n

Excluding an investment account from income plan calculations

By default, any investment account you include in an Income Lab plan will be included in all calculations of the income plan. However, there are certain times when you want to see an account in certain parts of the software - especially Life Hub, the plan's Balance Sheet, and the assets section of the Insights dashboard - but exclude it from use as

How to use the Investment Strategy explorer in Decision Lab

The target asset allocation of a plan has large effects on all part of a plan, including: Portfolio balance at retirement (nest egg) Spending capacity / Retirement paycheck Retirement income guardrails Portfolio volatility Income volatility The Investment Strategy exploration tool in Decision Lab gives advisors a focused way to explore the core ques

AI Transforms Financial Planning: Income Lab's Revolutionary Tools

In the rapidly evolving landscape of financial planning, AI tools are transforming how professionals approach client services and practice management. Income Lab's suite of AI-powered solutions represents a cutting-edge approach to streamlining financial planning workflows. Revolutionizing Financial Planning with AI Tools Financial advisors today fa

Are people really willing to adjust spending?

Retirement income plans with guardrails imply that when things change enough, for better or worse, people will adjust their behavior. The lower guardrail - the guardrail that says “we're running too hot now and it's time to trim back spending or make some other change to cool things down” - can be particularly important because changes in spending i

How does Life Hub account for partial years?

The values shown in Life Hub reflect different things for balances and for cash flows. These differences can be important to understand when viewing the first and second years' values. Balances (asset and liability values):  Current Year: The current balance of assets and liabilities Future Years: Estimated beginning-of-year balances for assets and

Why don't Social Security benefits start when they should?

Here's a common situation: you have an Income Lab plan where Social Security benefits are claimed at 62. But then you go to the Cash Flows > Income Sourcing screen and see that they don't start until age 67. Or maybe you see a few months of benefits here and there before age 67, but there are a bunch of gaps. What's going on? The reason you see t

How do Investment Fees Work in a Plan?

Setting Investment Fees There are two places you can enter investment or advisory fees in the software: Default Fees Plan-Level Fees To set fee defaults, go to the “Settings” section, found in the horizontal bar at the top of the screen (next to “Reports”). Then choose "Default Values" and open the “Fees & Expenses” accordion section.     Fee le