- Make a Target-Map. Click "Add Target-Map" from the right side toggle menu (View/Hide button).
*Note: For a quick tutorial see Make a Target-Map Fast.
- Choose a template and select who the funding goal is for. Click "Continue". The Target-Map will appear on the Target-Map list page.
- Click the title of the Target-Map to edit its parameters.
Target-Map templates make some assumptions for capital requirements and funding sources. (For more click Target-Map Preferences). All of those assumptions can be edited within the specific Target-Map.
Click the title of the Target-Map to edit its parameters.
The edit page is designed to foster conversation. The display defaults to the "What it means" tab. The electronic report (PDF) replicates this look.
The "What it means" tab is a summary of comparing "What you want" with "What you have".
The two other tabs ("What you want" and "What you have") offer the ability to:
a. Add capital requirements or funding sources to the Target-Map by clicking check boxes, or adding entirely new sources and requirements with a few clicks.
b. Edit each line item to modify Category, Description, Amounts, Ages, Dates, COLA, and Loss to Taxes if desired.
Edit funding goals on the "1. What you want." tab
Click the "1. What you want." tab. Click the description of the line item, or the word "Edit" on the right end of the line to bring up the edit window.
Features on the "What you want" tab
In addition to editing parameters on the "What you want" tab, this tab has some added features you'll want to be aware of.
a. You can reorganize the line items by clicking and dragging the handle at the left end of the line item. Use this feature to rearrange your conversation with your client as you see fit.
b. The default descriptions provide you with an explanation of how Target-Map Preferences are used to calculate the annual amount of the requirement.
For example: the Target-Map Preferences for the Retirement Target-Map template calculates for Travel Expenses, 10% of the Primary and Spouse's Annual Earned Income to derive an annual estimate for traveling. Of course, the description, the start and end dates, and amount can be edited.
c. A line item can be deleted by clicking the trash can icon at the right end of the line.
Edit funding sources on the "2. What you have." tab
Click the "2. What you have." tab. Click the description of the line item, or the word "Edit" on the right end of the line to bring up the edit window.
*Note: Unlinking a cash-flow from the Asset-Map
The "What you have" tab lists the cash-flows, assets and insurances it finds on the Asset-Map report. When Asset-Map financial values are updated, conveniently, the Target-Maps are updated as well.
The values for those cash-flows, assets and insurances are considered linked to the Asset-Map report unless you edit the Annual Amount Available on a Target-Map edit window.
That source will become unlinked from the Asset-Map, because your edited amount is the preferred amount.
How do you link it up again?
Open the edit window for that item. Click within the Annual Amount Available box and delete the value. Press "Save Changes" and the Target-Map will re-link the item to the Asset-Map financial.
Add new Cash Flows or Assets
Create your own cash flows or assets that are not on their Asset-Map to illustrate scenarios.
Click the Add Custom Cash Flow or Add Custom Asset button to enter the values.
Check "Future Value" if the COLA is supposed to start calculating at the Start Age of the cash flow instead of today.
See results on the "3. What it means." tab
Any changes will be reflected on the "3. What it means" tab.
*Tip: you can adjust the Expected Net Return on Capital and Duration of Contributions on the fly and see the funding results immediately while on the "What it means" tab. Try it live in a meeting with a client!
Here is about a 45 second animation demonstrating how to create and edit a Target-Map. It is really that quick.
To make more Target-Maps, click the toggle menu (View/Hide button), then click the "Add Target-Map" option.
To view the summary page of all Target-Maps created, click the arrow next to the Target-Map's title on the edit page, or click the Target-Map tab on the menu bar at the top of the page.
The Reports tab provides you the options to print out the Target-Map summary page with or without the Target-Map's "What it means" pages.
Tags: capital, requirements, tax, taxes, loss to taxes, COLA, inflation, cost of living