Advisors have shared a tip with us about including monthly or annual expenses on an Asset-Map report.

Here's why: 

It is sometimes valuable to put monthly or annual expenses into perspective and onto an Asset-Map because it can be a worthwhile topic of discussion, to move clients off center as well as contribute to a holistic view of their financial decisions.

Here's how:

Add Liability
Liability Type: Other
Chose Interested Members
Type the description of the expense into the Reference Name field and Lien Holder field
Optionally link it to an asset to give it visual impact
And Save Changes

You can break out expenses by adding more financials. For example: Boat Payment, Auto Payment, School Loan, Utilities, etc.

Note that our illustration shows a $0 Principal Outstanding. This will have no impact on the joint value of assets and liabilities (found immediately under the two family members).

This will not automatically subtract from the linked asset.
Currently, a liability cannot be linked to an income; only an asset.

Use Target-Maps to illustrate funding for any capital shortfall.

Tags: monthly, annual, costs, utilities, loans, itemize


Did this answer your question?