FAQ: How do You Enter Income/Expenses that Occur Late in the Year?

Income:

  • Enter Annual Averages:

    Input an average income amount for the entire year. If your income changes mid-year (e.g., due to a salary increase), estimate and enter the average amount for the year.

  • Plan for Updates:

    Update your plan early in the new year (e.g., January) to reflect updated tax and benefit rates as well as new income details.

Expenses:

  • Input Average Expenses:

    Similar to income, enter the average expenses for the year to account for variations over time.

Assets:

  • Use Beginning-of-Year Balances:

    Avoid entering current account balances if significant market growth has occurred during the year. Instead, input balances as of the beginning of the year to prevent unrealistic growth projections.

  • Adjust Annually:

    Review and update asset balances at the start of the year to ensure accurate projections.