How do I enter assumptions in Income InSight?

From the client information page, click on the assumptions folder and enter your changes to the default assumptions.

Income InSight is pre-populated with default assumptions, but you can update the assumptions to further customize your client's income plan.


Entering Assumptions in Income InSight:

  1. Inflation is set at 2.4% by default and all cost of living adjustments are applied to COLA-adjusted income streams, like Social Security.
  2. The discount rate is used to bring the future estate value back to today's value. This creates a fair comparison among the strategies.
  3. The state tax rate is a percentage rate applied to state taxes. Currently, Income InSight does not apply a bracketed system for state tax. You can put in a 2%, 3%, or 5% state tax for those states that do have state income tax.
  4. The beneficiary tax rate refers to the tax rate that would be applied to assets that are taxed to the beneficiary of an estate or retirement account. For example, if someone inherits an IRA account, the beneficiary tax rate would apply to the income generated by that account, but not to life insurance proceeds. 
  5. The default portfolio is set for an account that starts with zero assets, but assets begin to pour into it in the future.
  6. The variable annuity fee type applies to all annuities and can be set as a percentage rate or flat rate. 
  7. The Tax Cuts and Jobs Act (TCJA) represents a significant change to the U.S. tax code. As of current legislation, its provisions are set to expire or "sunset" in 2026.  Change the setting to do not sunset if you would like to explore scenarios were the tax code does not sunset in 2026. This setting impacts both Income InSight and Tax Clarity.

  8. Choose whether Income InSight should perform Roth conversions in the first year. We would recommend that performing conversions in the first year for a clients annual review. 

If you'd like to reset the assumptions to the default settings, click the "Use Suggested Defaults" and all of the default assumptions will repopulate.