The Target Adjustment Table allows you to manually update target income at specific ages during retirement planning. Below is a hypothetical example of readjusting the target income using the target adjustment table.
Client Information:
- Jane Doe, age 60, birth date: 01/01/1966, retirement age: 67
Incomes:
- Wages: $175,000 growing at 3% per year
- Social Security (SS) at 67: $24,000, COLA at 2.8%
- Pension at 67: $48,000 COLA at 2.8%
Assets:
- Roth 401(k): $1,600,000, Moderate 3% net growth per year
- Traditional IRA: $400,000, Moderate 3% net growth per year
- Taxable Brokerage Account: $500,000, Moderate 3% net growth per year
Goals and Objectives:
- Target Income: While working, the target income is $110,000 with an inflation factor of 2.8%. At age 67 the target income will be readjusted to $125,000. At age 80 the target income will be readjusted to $150,000.
- Traditional IRA: In retirement years, withdrawal amounts to meet the target income.
- ROTH 401(k): Roth 401(k): Contribute 5% of employee income per year to receive the full match from the employer until age 67. When RMDs begin, withdraw the full amount for the remainder of the plan.
- Taxable Brokerage Account: Contribute any excess amount for the remainder of the plan. Withdraw from the account to help meet the target income.
Expenses:
- Travel: While working $6,000 with an inflation rate of 2.8%, at age 67, $8,000 with an inflation rate of 2.8% until age 80.
- Gifting: $6,000 for the remainder of the plan.
Step 1: Edit: Click the green Edit button beneath the Structured Income Planning heading.
Step 2: Manage: Click the green Manage button in the Readjustment Target Income column.
Step 3: Add Adjustment Textbox: In the Adjustment Textbox, enter the revised target income amount ($125,000). 
Step 4: Year Checkbox: Click the appropriate Year Checkbox (8). 
Step 5: Pick Year(s): Click the green Pick Year(s) button. 
Step 6: Target Adjustment Table: SIPS automatically moves the revised amount into the Target Adjustment Table. 
Step 7: Add Adjustment Textbox: In the Adjustment Textbox, enter the revised target income amount ($150,000). 
Step 8: Year Checkbox: Click the appropriate Year Checkbox (21). 
Step 9: Pick Year(s): Click the green Pick Year(s) button.
Step 10: Target Adjustment Table: SIPS automatically moves the revised amount into the Target Adjustment Table. 
Step 11: Save: Click the green Save button beneath the Manage Target heading. 
Step 12: Structured Income Planning Landing Page: SIPS automatically returns you to the Structured Income Planning Landing Page. 
Step 13: Readjustment Target Income Age 67: SIPS automatically readjusted the targeted income for age 67. 
Step 14: Readjustment Target Income Age 80: SIPS automatically readjusted the targeted income for age 80. 
If you feel you need more support or would like to set up demo time with one of our representatives, please contact us at: support@planscout.com
