How can I set up mandatory goals that must always be completed?
In some situations you might want to specify that certain cash flow priorities should happen no matter what, i.e. 401(k), HSA or IRA contributions, etc.
Let’s use an example with a 3% 401(k) employee contribution, meaning you are planning to contribute 3% of your paycheck to your 401(k) as a cash flow priority.
Add a Flow
You can add this by following these steps:
- Click on a Plan you have created.
- Scroll down to Flows and click Add Flow.
- Choose Existing Accounts. If you have already added your 401(k) it will show as an option – click the + icon next to it.
- Click on Mechanics to choose the funding source as Fund with Income or Always Fund.
Funding Options
By choosing Always Fund you will fund this goal even if surplus income is not available and other accounts must be drawn down. If you choose Always Fund, you will see a lock icon next to this flow and it will be prioritized over other Flows.
Note
If you don’t choose to make it mandatory and select Fund with Income, you will also have the choice to enable Reduce Employer Contribution. If there is not enough income for your full contribution, the employer contribution will be reduced proportionally. Going back to the example, if you decided to change your employee contribution from 3% to 2%, toggling Reduce Employer Contribution on would reduce proportionally to 2%.
Related
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