How To Add A Future Mortgage

Hey guys, I recently had someone ask me how do I add a future mortgage payment to the retirement budget calculator. Maybe you're planning to buy a vacation condo or a vacation house somewhere warm and you want to see how you could model that. So let's jump into the calculator. You could use the same process for adding a future car expense as well, but let me show you how to add a future mortgage. All right, so we've got our hypothetical couple here, Jim and Nancy. The first thing that we're going to do is we're going to come to Assets and Liabilities and we're going to create a new liability. We're going to call it a home loan and we're going to say that the balance of the home loan, we're going to say they're buying a $500,000 house, but we'll say they're putting 20% down. So they're going to finance $400,000, say the interest rate is 6%. The start date of this loan is going to be January 1st of 2030. And then we'll say that the loan is going to be paid off 30 years out. So we'll say they're going to take a 30-year mortgage. Now you'll notice as soon as I add that liability, I get this prompt that asks me if I would like to add a payment expense for this liability. If one already exists, you can connect it from the budget view. But in this case, since it doesn't already exist, I'm going to hit yes, I want to add an expense, a payment expense. We'll call this the home loan payment. It's going to be $3,000. It's going to be monthly. It's going to be an essential expense. It's not going to happen until January of 2030. So that information is already selected. And then down here, you can choose the designated payment account. So maybe your withdrawal order has you taking IRA withdrawals at that point, but you want to specifically pay your home loan from the brokerage account. So you can select that account as the payment account. Okay. So now we've added the future liability and we've added the future payment for that liability. The last thing we want to do is we want to come up here to real estate and we want to add a vacation home. And we'll say the value of the house is $500,000. It's jointly owned, but the acquisition date, this is where we want to go out to 2030, January 1st of 2030. And we'll say that the house is going to grow at 2% per year from an accumulation standpoint. Okay, there, you've done it. Now you've added a future house, a future liability, a future payment and a future asset. And then of course, one of the things you can do over here in the net worth section, the net worth projection, as you can see, this is the real estate you own now, the blue. And then when you get out to the year 2030, you'll notice you now have this additional real estate asset. I hope you found this helpful. Thanks so much.