In inStream, the spending requirements, or outflows, in a goal-based plan are defined as goals.
Goals reflect an annual, after-tax spending amount and will run from January of the start year to December of the end year. Each goals-based plan must have at least one goal but can have many more.
Note: Current year goals are not prorated.
There are four goal types available within inStream:
The first three types - Retirement, Education, and Lifestyle are multi-year goals. Legacy goals are point in time goals. We will take a look at each of these different goal types separately.
Retirement Goals are used to determine annual spending objectives for the plan. This amount should reflect the spending necessary to meet standard of living expenses, e.g. mortgage, rent, clothing, utilities and day to day expenses should be reflected in the annual spending goal. Multiple consecutive goals can be set up to show an increase or reduction in spending over the life of the plan.
Click here for more information on how to enter a Retirement Goal.
Education Goals are define the amount required to pay for education expenses. This goal types provides the ability to manually populate an annual cost or search for a specific institution's current tuition expenses, based on the U.S. Department of Education data. The start year of the education goal can be set to coincide with the recipient's high school graduation year so preparations and timelines can be as accurate as possible. The end year can be adjusted to plan for the number of expected years in the educational program.
Note: The education goal should be attached to the individual it benefits because the timeline will automatically align with the beneficiary's age.
Click here for more information on how to enter an Education Goal.
Lifestyle Goals represent larger, less frequent expenses that are not captured in the retirement spending goals. Lifestyle expense may include:
- New boat purchase
- Second home purchase
- Children's Wedding Expenses
Click here for more information on how to enter a Lifestyle Goal.
Legacy goals are used for one point in time outflows. Examples include a bequest or a large one time charitable donation that would typically occur at the end of Life Expectancy.
Click here for more information on how to enter a Legacy Goal.