Adding salary information in the Lifetime Planner

Accurate salary information is essential for building a reliable financial plan in the Lifetime Planner. Salaries are one of the primary sources of income, both before and after retirement, and directly impact your overall savings and investment growth. Properly entering salary information ensures your financial plan remains comprehensive and reflects your real-life income situation.

See Managing salary expectations in Lifetime Planner for more information about planning your salary.

To enter salary information in Quicken's Lifetime Planner, follow these steps:

1. Go to the Planning tab and select Lifetime Planner. Select Click here to begin planning or Plan Assumptions to access your plan settings.

2. Within Plan Assumptions, select Income to open the income management section.

3. Select New to input a new salary. If your spouse is included in the plan, select New again to add their salary separately.

4. Specify who earns the salary (You or Spouse) and provide a Name or description for the salary. Enter the Gross Annual Salary, including bonuses and commissions.

   • Exclude other income types, such as:

     • Social Security benefits

     • Pensions

     • Investment income

     • Small business income

     • Real estate income

   • If the salary varies, consider averaging it over the past five years for accuracy.

5. Set the dates when this salary begins and ends.

   • These dates can be edited later, but deleting them requires removing the salary entry entirely.

   • Specify how much the salary is expected to increase each year, typically aligning with the inflation rate.

6. Indicate the Employment Status as either a Regular employee or Self-employed. This selection affects:

   • Tax rates applicable to the salary.

   • Eligibility for tax-deferred savings plans.

7. If applicable, select the checkbox indicating Social Security taxes are paid on this salary.

   • If this option is unchecked, only Medicare taxes will be deducted.

   • Some employers, like certain nonprofits or government agencies, may not deduct Social Security taxes if alternative retirement plans are in place.

8. To account for anticipated salary changes, such as promotions, career changes, or leaves of absence, select the relevant salary entry and then select New to add an adjustment.

   • To modify an existing adjustment, select it and then select Edit.

Additional Considerations

• The Lifetime Planner supports only U.S. currency. Non-U.S. currency accounts will be converted to U.S. dollars for planning purposes. Ensure all entered amounts are in U.S. dollars.

• Salaries are subject to income taxes and may also incur Social Security and Medicare taxes, depending on employment status. If salaries and other income do not cover taxes, loan payments, and living expenses in retirement, the plan may utilize savings by selling investments.

By accurately entering and regularly updating salary information in the Lifetime Planner, you can create a more precise and effective financial plan that reflects your current and future income scenarios.