Asset-Map
Add a Real Estate Asset Financial
Right click+Create or click Actions menu
Click Asset
Complete Essential information page
Select "Real Estate" type
Select Interested member or members. Enter percentage of ownership.
If jointly owned, select "Joint Ownership".
Enter Reference name, Location, and Value.
If Notes are needed, click Notes tab and enter more information.
If Beneficiary is needed, click Details tab and select Beneficiary(s)
This places a blue bordered asset tile on the map.
Enter a Residence (Home)
Follow the steps above.
After selecting real estate type, click the "Is Residence" check box.
This places a house tile on the map.
Add a Mortgage Liability Financial
Right click+Create or click Actions menu
Click Liability
Complete Essential information page
Select "Mortgage" type
Select Interested member or members. Enter percentage of ownership.
If jointly owned, select "Joint Ownership".
Enter Reference name, Lien Holder, and Principal Outstanding.
If Notes are needed, click Notes tab and enter more information.
Use the Details page to enter more information.
If desired, use the Link to Asset menu, scroll down to the property, click the property name to visually connect the mortgage to the real estate asset.
Add a HELOC (Home Equity Line of Credit)
Use the same process as adding a Mortgage Liability except select a different "Type". Use Home Equity loan or Loan type instead of Mortgage. Follow the rest of the steps and use the Link to Asset feature if desired.
Target-Map
What you Want page
Loss of Life Target-Map Template
The Loss of Life Target-Map template looks for Liabilities on an Asset-Map and applies a Debt line item on the What you Want page with the sum of liabilites. (Note: Adding additional liabilities after a Loss of Life Target-Map has been created will not change the current Loss of Life Target-Map Debt line item.)
Retirement Target-Map Template
This template positions three conversations: Living expenses, Travel expenses and Medical expenses. The annual dollar values are not derived from Liabilities (like a mortgage) found on the Asset-Map, but are estimated instead.
When it comes to debt repayments, this boils down to how you position "Living Expenses" during retirement: does this include mortgage payment or not?
You can breakout the mortgage repayment from the Living expenses value a couple of ways and add a line item for the mortgage amount extending for the expected years of the mortgage.
The Target-Map Template estimates $70,000 annually for 30 years (we're applying COLA, too):
But, the annual mortgage amount of $18,000 a year only lasts for the first five years of retirement. By using the Add Desired Cash Flow button, you could provide a scenario that looks like this:
We reduced the "Living Expenses" and added a mortgage line item expense that lasts only five years.
Illustrating a Mortgage Payoff Another Way
Target-Maps cannot calculate what portion of an annual amount would go to paying off principal or interest. Therefore, the desire of paying off a mortgage can be expressed as the total outstanding at a certain age.
For example, the below What you Want line item illustrates the household paying off their mortgage in 10 years but we are using a lump sum. Mr. Blankenship is currently 50. Notice that only the Start Age is entered as 10 years in the future (age 60). Mr. Blankenship wants to pay off $400000 in 10 years, by age 60. End Age is left blank for one-time payouts.
What you Have page
Real Estate assets become line items on the What you Have page on any Target-Map for optional funding sources. They do not subtract the outstanding debt on the asset.
Balance Sheet
Liability Financials and Assets are line items on the Household's Balance Sheet.
Household Index
The Household Index can display Liabilities for a Household, of which a Mortgage or HELOC will be added. The Household Index can display a Liabilities column and Filters can be applied to reveal Liabilities of certain amounts.
Assets can be filtered and columned in the same way.
10/2024