Anticipated Savings is any pre- or after-tax income stream that the client expects to receive to fund goals. Examples include:
- Retirement or college savings (pre-tax savings)
- Monthly savings from employment (after taxes and monthly expenses)
- Rental income
- One-time income payment, such as an inheritance or a vacation home down payment
The Household Balance Sheet supports two different types of savings plans:
- Retirement (i.e. pre- or post-tax contributions to retirement accounts)
- Other (i.e. other savings after tax income)
For the Household Balance Sheet, Anticipated Savings are discounted back to today's dollars (See, Net Present Value).
Comments
0 comments
Please sign in to leave a comment.