Advanced Settings

welcome this video will walk you through

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the advanced settings of your income lab

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household from your income plan

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dashboard to get to the advanced

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settings click the three dot icon in the

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top right of your screen and then click

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advanced

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settings here you'll have more custom

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inputs to add to your income lab

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household I will walk through each

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section of your advanced settings below

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first taxes here you can by default

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allow CDs in pre-retirement you'll see

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the default will have it unchecked also

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in the tax Center when you look at your

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tax analysis or your tax results It Is

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by default applying the 2026 sunsetting

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of the taxes if you'd like to uh uncheck

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that and not have that included by

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default you just want to check this box

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to remove it as

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well next you can add a local tax rate

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this is if your clients live in a city

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or municipality where they have to add a

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local tax on top of their state

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taxes you'll see the default does not

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include the local tax rate next you'll

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see the portfolio withdrawal order

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here's where it's referencing the

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current tax strategy being used in the

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plan you can go to the tax Center and

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have the software run all the different

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reports and then compare and explore and

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implement or apply a tax strategy to

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your plan however in the advanced

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settings you can also quickly change

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that tax strategy by opening this

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dropdown

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setting the order by tax treatment if

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you want to base it off the tax

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treatment so here I can reorder it for

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example if I wanted it to go tax

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deferred tax-free taxable or any

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ordering by tax status or by selecting

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the bracket management Roth conversion

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scenarios if I want to have the software

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use a Roth conversion strategy where

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we're targeting the top of any of these

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tax brackets here um in the

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plan the default option unless you

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changed it the default option unless

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you've changed it in your main settings

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will be

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prata below you'll have a few more

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options for customizing your Roth

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conversions you may want to enforce an

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annual dollar cap on your Roth

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conversions just to limit how much the

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software will allow the plan to convert

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in a single year if we'd like to put

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that annual dollar cap on we'll check

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this box and

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then we can

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override and for example pull in a

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$100,000

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annual dollar cap on those Roth

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conversions if you'd also like to

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specify the years in which Roth

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conversions are allowed maybe in this

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case your clients only want to do Roth

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conversions over the first five years of

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the plan or they maybe want to go every

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other year you can check the box hit

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customize years and then here you can

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check the years in which you'd like Roth

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conversions to be considered if you'd

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like to first start by selecting all and

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then unchecking several years so maybe

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the client wants to wait a few years

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before they start the Roth conversions

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you can do that option as well you do

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want to click save once you're done for

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this example I will keep everything on

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the defaults below there you'll also

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then be able to see the Medicare inputs

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here you'll see the default will have

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Medicare covered by Part B and Part D

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included with the monthly Part D base

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premium of $43 a month and having

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Medicare begin in h65 for both members

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in the household here you can quickly

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uncheck these boxes change the base

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premium amount or if you want to have

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these base premiums included expense

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items in the plan you can check the box

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here and then choose whether that's a

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baseline expense or an other variable

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expense from our other tutorial videos

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you'll find out that the Baseline

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expenses are truly ongoing normal

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expenses through the entirety of the

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plan whereas the other variable expenses

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better represent more unique lumpy or

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expenses that will stop at some point

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along the way the default you'll see

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will have them included as Baseline

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expenses in your

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plan you also want to click save after

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each of these sections to make sure that

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you're saving these

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inputs below there you'll also see the

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longevity

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settings the software is using Actuarial

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data from retirement participant plans

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as it setting up the plane length here

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with a 2% household it's looking at a

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dual longevity here so here can quickly

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change the slider to increase or

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decrease the overall plane length by

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default it assumes both people live at

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an above average longevity but here if

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Tim is maybe planning on living at a

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below average we can slide the slider to

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reduce his longevity expect expectations

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or much longer than average to increase

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those longevity expectations since it's

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doing the Dual longevity here you can

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see by changing the slider of one person

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that is impacting the overall plan link

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it's important to note that with this

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plan link the software is not killing

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off the clients at 34 years it is

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actually just saying this is the initial

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estimation for the plan length there's

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by default a five-year buffer built in

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so as the client ages they may outlive

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these 34 years the software is actually

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updating the plan along the way just

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ensuring that the client never outlive

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the

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plan now you may also have a situation

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here where one of the clients

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unfortunately maybe has a terminal

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illness or because of the age difference

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may be planning on um passing away at

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some point in the plan to put in more of

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that unique end date for that specific

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person you'll want to click the calendar

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icon here to toggle off the slider and

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then put in the year and month in which

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you'd like to plan for them to pass in

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the

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plan you'll notice that if I do plan on

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killing off one of the clients cents

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that you always need to have at least

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the other client using the longevity

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estimates again because the Actuarial

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data will update the overall plane

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length as they age so you'll notice that

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even while you turn it off for one

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client it'll always be turned on for one

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of the other

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clients and again save after you're

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finished next you'll see the Legacy goal

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section here's where you can input a

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legacy goal for your client so if they

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have a specific amount they' like to

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leave in their port folio at the end of

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the plan you can enter that value here

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and then the software will factor in the

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calculations to try and maximize their

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income while still letting making sure

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the software will try to maximize their

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income while still making sure that they

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hit that Legacy goal at the end of the

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plan if you're planning on leaving

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$250,000 flat you can keep it how we

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have here or if you'd like to have that

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$250,000 adjusted for inflation you want

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want to check this box to adjust the

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Legacy goal for

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inflation next you also see the income

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path by default the software is using an

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age-based income path which is using the

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retirement spending smile or having the

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clients live through the go- go slowo

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no-o stages in retirement if you'd like

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to use more of a flat-based income path

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you can open the toggle here and choose

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flat or if you'd like to put in your own

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custom income path you can put in the

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custom option choose when those

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reductions and income will start

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by how much the annual reduction will be

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and you can also choose to increase the

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income by a certain percentage for the

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final three years so pre-building in

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your own goo or noo

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stages however again the software you

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will use age base as the default below

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there you'll also see the minimum income

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change section when you look at the

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guardrails and as you plan for

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adjustments the software has this

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minimum income change to make sure that

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we don't notify you of really small

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adjust adjustments so here it's just

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saying that we will only notify you of

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adjustments that are at least 5% or

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greater of the current income now that

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is a default here you can change that

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just by highlighting the

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section and putting in your own minimum

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income change however most our users it

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seems do just keep it at 5%

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here going from there we'll also see the

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income

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settings we talked a little bit about

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this in our Baseline expenses tutorial

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but here you'll see that by default the

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software uses a what can I spend income

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setting that is solving for the client's

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spending capacity however if you did put

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in expenses Baseline expenses and would

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like to instead solve for the client

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getting exactly those Baseline expenses

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net a tax you can change the setting to

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how can I spend $7,000 net of tax and

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then when you look at the results the

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software will calculate the income

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settings needed for the clients to spend

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exactly $7,000 net of tax and then it

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will just gross up the gross withdrawals

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to cover any taxes or any other variable

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expenses you may have

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added if you did put in the income

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setting to how can I spend the net of

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tax option you can also click find

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income and guard rill settings and then

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the software will be able to calculate

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what those income and guard R settings

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or what that risk level is to get you

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that net of tax option if you did click

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to find those income and guard rule

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settings the software will calculate and

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find the risk level that had to result

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in order to get you that exact net of

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tax options and then you can see those

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percentages here

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below next on the income adjustments

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this is referencing the guard rails I

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will put it back to our default setting

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here just so you can see with the what

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can I spend you can click customize

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income adjustment plan to put in your

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own custom risk level and custom guard

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rules here if you need to otherwise here

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you can just see the results that are

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needed for for a plan for income

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increases and plan for income decreases

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you can view our tutorials on the guards

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to get a better and deeper understanding

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if you'd like to make these changes from

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there you do have the options of putting

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income floors and ceilings in the

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advanced settings here with the floor

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first we can maintain a least intial

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income unless the portfolio dips below a

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certain level and you can put that level

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here for the portfolio or if you're

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putting a ceiling you can have the

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software limit the income increases so

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even when higher income would be

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otherwise available on the plan we can

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cut cap the monthly income at a certain

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percentage or put in a real dollar value

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for that

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ceiling again I will put it back to the

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defaults for this

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video next you'll see the plan analysis

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section by default the software is using

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the historical analysis method again in

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your main settings you can change this

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default and open the drop down here if

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you'd like to instead under each plan in

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the plan analysis here under each plan

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in the advanced settings you can change

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and maybe use a traditional Monte Carlo

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which is only using one set of Capital

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Market assumptions or a regime based mon

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Carlo which is using two sets of Capital

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Market assumptions one's for the

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short-term period and another for the

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long-term period but here we'll put it

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back to the default

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historical last option here is to just

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put in your overall fees and

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expenses as a reminder in the advanced

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settings this is only being applied to

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this plan specifically if you'd like to

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make those fees and settings at a global

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level you do want to go to your main

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settings at the top year and set that at

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a global level however in the advanced

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settings here we can put in a percentage

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for the fee or a flat rate or if you're

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breaking it down by the asset class

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level you can enter those amounts for

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the fees here as well and then save when

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you've made those

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changes that's it that covers all the

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sections of the advanced settings inside

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your income lab plan after you've

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clicked save you do want to scroll back

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to the top and hit return to plan if you

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haven't saved any of your changes it

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will throw up this reminder for you to

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save your changes before

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exiting and then that will take you

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right back to your income plan

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dashboard if you're on some of our other

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tabs here for example if you're in live

12:23

Hub and want to get to the advanced

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settings you do want to go all the way

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to the top right here again clicking the

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three dot icon to go to advanced

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settings if you're in the retirement

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stress test you'll notice it's still in

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the same top right section clicking the

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three dot icon to go to the advanced

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settings and you'll find that also in

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the tax Center or the tax lab and you'll

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find that also in the tax lab we hope

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this helps please reach out to our team

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if you have any questions and watch our

12:52

other tutorial videos for more guided

12:54

help on using income

12:57

lab