<title>Learn about inflows on the Yearly Snapshot page</title>
<category fLocale="cdn">lifeplan</category>
<klink type="cncpt">Tell me about inflows on the Yearly Snapshot page</klink>
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<p variant="impt">Remember that Money generates your Yearly Snapshot using data you've entered in your lifetime plan. Therefore, if you haven't entered any data that would fit into one of the sections listed below, you may not see that section on the <emph>Yearly Snapshot</emph> page.</p>
<p>The <emph>Inflows</emph> section of the <emph>Yearly Snapshot</emph> page displays any income or other money you receive prior to taxes and is organized into the following areas:</p>
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<tease>Salaries</tease>
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<p>This is money that you and your partner earn, prior to taxes and other payroll deductions. This section also includes annual raises and all career events, such as promotions and unpaid time off. To enter current salaries, as well as future career events that will affect your salary, go to the <emph>Career</emph> pages.</p>
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<tease>Social Security Benefits</tease>
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<p>This is the amount that you and your partner expect to receive in Social Security benefits. To enter or change Social Security income, go to the <emph>Other Income</emph> page.</p>
<p>According to government regulations, if one spouse or partner dies, the surviving person can receive a Social Security benefit roughly equal to that of the deceased spouse, if the amount would be greater than the survivor's independent benefits. This is called a spousal benefit. Spouses or partners who do not qualify to receive Social Security benefits may also receive spousal benefits. The Lifetime Planner follows these guidelines in its calculations.</p>
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<tease>Pension Benefits</tease>
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<p>A pension is a retirement plan in which your employer pays you a fixed amount of money (or defined benefit) every month during your retirement. The employer takes responsibility for the investment decisions necessary to pay the benefits. To enter or change pension benefits, go to the <emph>Other Income</emph> page.</p>
<p variant="note">A pension differs from a defined-contribution plan, such as a 401(k). In a defined-contribution plan, the employee contributes a fixed amount of his or her salary to a retirement account and is responsible for the investment decisions. To enter a defined-contribution retirement plan, go to the <emph>Savings & Investments</emph> pages.</p>
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<tease>Other Income</tease>
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<p>This area shows extra income you've entered including inheritances, Social Security benefits, pension benefits, rental income, and any other income you expect to receive. To enter or change this type of income, go to the <emph>Other Income</emph> page.</p>
<p><emph>Home/Asset Sales.</emph> This shows proceeds you receive from selling an asset (prior to taxes), sales fees, and money used to pay off any remaining loans. To adjust the sale date for a home or an asset, go to the <emph>Homes & Assets</emph> page.</p>
<p><emph>Borrow Money.</emph> This shows the amount of money you receive from loans. Although you may spend loan money you receive immediately, such as for a mortgage on a house, this money is still shown as an inflow. To adjust the details of loans used to purchase homes or assets, go to the <emph>Homes & Assets</emph> page. To adjust the details of other loans, go to the <emph>Loans & Debt</emph> page.</p>
<p><emph>Surplus from Prior Year.</emph> This shows the amount of surplus income left over from the prior calendar year after expenses, loan and debt payments, taxes, and savings contributions. If you have surplus income in any particular year, that surplus is carried forward to the next calendar year to pay for upcoming expenses. The Lifetime Planner then assumes that you, like most people, will spend this surplus rather than invest it; this is what "Spend Unused Surplus from Prior Year" represents. If you think you will save any of this surplus income, you can increase your planned savings contributions on the <emph>Savings & Investments</emph> pages.</p>
<p><emph>Life Insurance Benefits.</emph> This includes any benefits paid to you or your partner from the term or cash portion of a life insurance policy.</p>
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<tease>Withdrawals from Savings</tease>
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<p>This area shows how much (pretax) income you'll receive from planned withdrawals from savings or from selling investments.</p>
<p><emph>Withdrawals to Cover Expenses.</emph> For each year of your lifetime plan, the Lifetime Planner calculates your income and expenses. If you don't have enough income to cover expenses in a certain year, the Lifetime Planner assumes you'll sell investments or withdraw money from savings to cover the difference. In all cases, the amount of the withdrawal not only covers the unpaid expenses for the year, but also covers any capital gains taxes due from selling investments. The Lifetime Planner assumes you'll first take money out of taxable investments. If there isn't enough money there, the Lifetime Planner assumes you'll exercise stock options. And if you still don't have enough money to cover expenses, withdrawals from retirement accounts are projected. There is one special case <mdash/> if you have an account in the name of a dependent, withdrawals from that account will be used only to fund college tuition expenses for that dependent.</p>
<p><emph>Required Distributions.</emph> Government regulations require the owner of certain types of tax-deferred retirement accounts to begin making withdrawals (called required distributions) at age 70╜. The Lifetime Planner uses the formula defined in IRS Publication 590 to determine what amount to withdraw each year. After projecting taxes due on the withdrawal and other expenses due during the year, you may have a surplus. The Lifetime Planner assumes you'll reinvest this surplus in taxable accounts.</p>
<p><emph>Proceeds from Exercising Stock Option Grants.</emph> The Lifetime Planner assumes that you'll exercise stock options if necessary to cover your expenses. If the expiration date you've entered for a particular grant arrives and you still own any portion of the grant, the Lifetime Planner projects that you'll exercise the option, sell the stock immediately at the current (higher) price, and reinvest post-tax gain in your taxable accounts. The amounts shown for stock option grant proceeds are the pretax gain. When you exercise options, you may see your net worth decline. This is because you'll have to pay taxes on your gain. To adjust the normal vesting and expiration schedule for your stock option grants, go to the account register.</p>
