What is "Anticipated Savings?"

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).