In This Article
Entering Contributions on an Asset-Map
Contributions are not just for Retirement! An education account or savings account are examples of other types of assets with contributions.
Note: Contributions will not be visible on an Asset-Map when entered into the Contributions field on an Asset's Details tab.
In the Contributions field on the Details tab of the asset's edit/info window enter the
desired annual amount,
the start age or date of the member (optional),
and the end age or date of the contribution.
Note: Age or Date are options. Select the preferred type.
Note: The system assumes the current age if no start age/date is entered.
Asset-Map does not calculate a contribution based on percentage of earned income. Enter an annual dollar value instead.
For Retirement values, decide to include employer match or not as part of the dollar value.
Employer Match to a Retirement Fund
If the employer is providing an employer match percentage, the advisor must calculate an annual dollar amount to add to the employee contribution. Asset-Map can not calculate percentage of earned income for an employer match to contributions. This amount will be reflected in a Target-Map.
Contributions On a Target-Map
As with all funding sources, the advisor elects to apply the future contributions to fund the desires by checking the check box to the left of the source. The total contributions value as well as the asset's current value are listed on the "2. What you have" tab in two locations - the Cash Flow Sources Available table and the Assets Available table:
As with all funding sources, be sure to evaluate the COLA increases and Loss to Taxes on funding sources and adjust as necessary.
Using Contributions in Planning
Some points to consider:
One can illustrate what the impact of applying future contributions have on funding the goal by checking its associated box.
Since you are evaluating what funding will be spendable, an application of a reasonable Loss to Tax percentage rate might be needed. This is often the case with Retirement contributions.
Though Retirement contributions are often not taxed when taken out of earned income, in a Target-Map you are actually determining a dollar value of funding to be used during retirement. Therefore, Loss to tax may need to be applied.
The Target-Map What it Means page is presenting the full value of the years of assumed annual contributions as a present value equivalent.
The Target-Maps Cash Flow Details page displays the impact of saving contributions (net of COLA and Taxes applied) during the desired years entered. This is often important in a Retirement conversation.
9/2023