What is Excess Income?

The Boldin Planner allows you to account for your income and expenses through your lifespan. Any time that your monthly income from all sources is higher than what you have specified for your expenses and savings contributions, you will have a surplus and the opportunity to strategically allocate your surplus funds to enhance financial security, investment growth, and wealth preservation.

The Excess Income feature allows you to manage your surplus funs in the Boldin platform, ensuring that the software saves as much or little of your surplus funds when and where you specify.

We recommend you head over to My Plan > Money Flows > Excess Income and select an appropriate percentage and account to save your Excess Income.

If you are someone who carefully monitors their cash flow and is good at saving extra money, then you might tell the system to save 100% of your excess income.

On the other hand, if you are someone who might be more apt to spend whatever money you have earned each month, you might want to specify that the system saves less than 100% of the projected excess income. When you do this, a percentage will be saved and a remaining portion will be automatically spent by the Planner.

The tool will automatically default to choose "Cash," a default account for your excess income, which is an after-tax account with the ordinary income tax treatment and rates of return of 0% for optimistic and 0% for pessimistic. If you see an account named “Other Savings” Insights > Savings Chart, this is the default account for Excess Income.

We recommend designating one of your own After-Tax accounts by pressing the ✎ (pencil) icon when asked “How should we handle excess income?” You also want to consider the growth rate of the account you’ll use for your excess income. Do you want your excess income somewhere safe with a low growth rate, or do you want it invested and growing at a higher rate?

You can view your Excess Income in your Insights > Surplus Gap Chart

NOTE: Excess income saved is not included in the Financial Wellness Metric: Savings Rate