Life Events
Dated changes on the projection5 sections
A life event is a dated change to income or spending, placed on the timeline rather than averaged into the projection. Timing is the point: the same amount lands differently depending on which year it falls in.
Events fall into a few shapes, and the shape determines how the line responds:
- One-time expense
- A wedding, a medical procedure, a home purchase. A single step down.
- One-time income
- An inheritance, a business sale, downsizing a home. A single step up.
- Recurring expense
- Tuition across four years, ongoing care, sustained charitable giving. A sloped section rather than a step.
An event lands in the year you place it, and only that year. Amounts fixed in nominal terms are deflated first, so they stay comparable to the rest of the chart, which is drawn in today's dollars.
This content is educational and informational only. It is not financial, investment, or tax advice. Consult a qualified professional before making financial decisions.