After-tax Spending: Total for the couple or individual entry for client and spouse

In your projections for a couple, you have a choice to enter either the total combined spending or enter the individual spending for each of the spouses. In most cases, it is advisable to enter the total combined spending so that the software can allocate a portion of the spending to each spouse so that neither runs out of money before the other.  This is the default setting.

In this article:

  1. Option 1: Total after-tax spending for the couple (default setting)
  2. Option 2: Individual after-tax spending amounts for each spouse

Enter the Total After-Tax Spending for the couple on the Combined page (default setting)

Snap will allocate the spending between spouses each year based on their individual resources. 

The $100,000 of combined After-tax Spending in this example is split between the spouses as shown below.  You can see that each year the allocated amount is recalculated and there is a varied amount of spending for all years.  Snap will allocate spending each year to make the best use of available resources (e.g., Cash Balances, income, Capital Assets) in each year of the plan.

By hovering your mouse pointer over the amount under the After-Tax Spending column, you can see the total combined spending and the other spouse's spending amounts displayed on a year-by-year basis. 

Note: In Option 1, the After-Tax Spending for the client and spouse is in black font and cannot be edited. If you wish to change the After-Tax Spending from what is automatically allocated, you must follow the steps in Option 2.


Enter Individual Spending for each spouse

Snap lets you manually enter the After-tax Spending for each client and spouse if the situation arises.  First, you must change the Advanced Settings to allow for entering individual spending amounts.

Select  Scenario Setup -> Settings -> Advanced.  

On the Advanced Settings page, enable the checkbox to Enter individual spending for client and spouse instead of combined spending.

In the Client and Spouse's Planning pages, enter the individual spending amount for each person and run the scenario.

By hovering your mouse pointer over the value under the After-Tax Spending column, you can see the individual client and spouse spending amounts for each year.

Note: In Option 2, the After-Tax Spending amounts for the Combined scenario are now in black font and cannot be edited. The combined after-tax spending is the sum of the individual spending amounts that you have entered. If you wish to allow the software to automatically allocate the spending for each spouse based on a combined After-Tax Spending amount for the couple, you must first deselect the check box under Advanced Settings. Then follow the steps in Option 1: Total After-Tax Spending for the couple.

If you apply the Sustainable Scenario recommendation, the check box to enter individual spending amounts will automatically be de-selected. 

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