Step 1 - Add Family
Adding family members to your financial plan
The first step in creating your financial plan is to know who we are planning for.
During this first step, add yourself, your spouse (if applicable) and any children or grandchildren you would like to plan for. If you want to add any kind of college planning, 529 accounts, etc. for a child or grandchild - The child/grandchild must be added here.
For each person be sure to at least include name and birth date (in YYYY-MM-DD format).
Step 2 - Add Income
Adding Income to Your Financial Plan
The second step in creating your financial plan is adding salary and income for you and your spouse (if applicable).
Clicking on each participant allows you to edit salary, raises and other aspects of each person's income.
Here, you can also add specifics for social security, or leave as "estimated" if you are unsure.
If you have other sources of income besides a salary from your primary job, you can add it by selecting "Add Income" in the top right. Use this if you have alimony, child support, annuities, expecting an inheritance, or more.
Step 3 - Add Retirement Assets
Adding Retirement Assets to your Financial Plan
Next, we start to fill in the numbers. To start, enter the percentage of your salary (or dollar amount) you save into your retirement accounts each year. This is likely the automatic contribution you have set up with your employer.
In the next step, we can import account data (like account balances, asset allocation, etc.). This information is used for projecting saving rates into the future to see if you are saving enough to retire.
In addition to 401(k)s, you can also set up IRAs, ROTH IRAs, SEPs, 529 college savings plans and more by clicking the "Add Saving" button in the top right. If you save a specific dollar amount into an account (Like $5,500 a year into a ROTH), you can change "% of salary income" to a specific dollar amount in the drop down menu.
Step 4 - Adding Savings, Debts, Insurance and Linking Accounts
Adding and Linking Saving, Checking, and Retirement Accounts
Next we get into the details of your current financial picture. Our software has the ability to add account aggregation, so your savings accounts are updated automatically, and any changes instantly affect your financial plan. No more need to update your account balances every time to get an accurate picture!
The account aggregation feature works just like popular financial software like Mint or Personal Capital. You enter your financial institution (for example, Wells Fargo), then input your username and password, just as if you were logging in on their site.
IMPORTANT: This creates a "read only" access to your accounts. So even if your password to our financial planning was compromised, no withdrawals or other changes to your accounts could be made. Also, Hylland Capital CAN NOT see your login details. It would violate custody rules (in other words, it's illegal and we would be fined and likely banned from the industry!) for us to have or gather that information.
If you do not have online access to accounts, or would not like to have your accounts aggregated, you can add accounts manually, leaving out login information:
To add accounts manually, click the "Add Account" button in the top right, select which type of account you are adding and fill in the details.
If you are manually adding a retirement or taxable brokerage account, you can add specific holdings as shown above. This will allow the software to update your account balances and values without you needing to provide new information. If you are adding savings, checking or CD investments, you can enter the cash balance.
Step 5 - Add Expenses
Adding Expenses to Your Financial Plan
Next, the most important aspect to your long term financial success - expenses and spending. Add up what you spend each month EXCLUDING expenses you entered on the previous steps, such as mortgages, credit cards, car loans, student loans, etc. Think food, entertainment, utilities, etc.
You don't have to be exact. But it will be more helpful the more accurate your input is.
You also have the opportunity here to adjust some tax expenses you have. The software will automatically calculate state income taxes along with your current tax bracket. If you have extra tax items such as capital loss carryovers you can enter them here (most will not need to change anything here).
Step 6 - Adding Goals
Adding Goals to Your Financial Plan
Last step! Here we input what you are saving for. Long term is likely retirement, but you have other goals too. Maybe saving for a vacation every year, college fund for your child, a new car or another big purchase. Adding them here will make sure we account for savings that needs to happen to make these dreams a reality.
All Done! What's Next?
Now that all of your data is put into the software, you will initially have a limited view of our financial planning software. Initially, only budgeting items will be unlocked - which is all you will need for Week 1 of the course. As each week progresses, additional features of the software will be unlocked to allow you to get into the details of your plan.
Stay tuned, Week 1 (covering basics of budgeting, your net worth and liquidity needs) of the financial planning course will come the day after you sign up. See you then!
As always, if you have any problems with setting up our software