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To begin, click "Plans" on the navigation bar to advance to the Plan List screen: |
Click "Add New Plan" to advance to the Personal inputs screen:
*For more information on inputting your plan, you can take a quick tour of our plan input screens or view a sample audit, which can both be accessed by the Support link.
On the top of each input screen, the name of the plan you are currently in is displayed in the "This Plan" field. When you begin a plan, it is named “new plan,” and allows you to type the name of your choice over it. If you would like to look at a different plan, for the sake of comparison, the "Switch Plan" drop-down menu allows you to go to any other plan of the same type, working plans, reporting plans, or retirement planners.
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Each input screen has a HELP button at the top, which will open up a help screen that is specific to the screen you are currently on: |
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Investors without Advisors will see the "Save My Changes" and "Need Advice?" buttons at the top of each input screen. Investors with Advisors will see the "Save My Changes" and "View Partner's Changes" buttons at the top of each input screen.
The "Save My Changes" button will save to the database any changes that you have made on the current screen.
The "View Partner's Changes" button was designed to enable two users, the Advisor and the Investor, to collaborate online on the same plan. Clicking on the button allows you to see any changes your partner has made to the plan.
The "Need Advice?" button will open a small window with information on how to submit your plan to a Choice Advisor for bid. After clicking this link, your selection for managing your plan will change. (See below) |
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Previous view of tools and navigation key
View after clicking 'Need Advice?"
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The left side navigation menu takes you through the various input screens. To simplify the user experience, we have broken up the information into three sections.
Users may navigate through the site by clicking on the various input screen titles, or by using the arrows in the top right corner of the screen:
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If you are curious about the probability of living to a specific age, click the "Calculate" button to launch the mortality calculator (available to registered users who have purchased the Wealth Simulator tool).
Plan Target & Assumptions
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Investment Objectives Questionnaire |
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If you select Method One, the following screen allows you to specify a percentage weight across asset class with additional clarification for a distinct tax status and time period.
This Allocations screen can illustrate the options to either split allocations or show that there is no distinction between taxable and non-tax/tax deferred allocations, both pre-retirement and post-retirement. The site will allow for up to four separate account allocations: Pre-retirement (taxable & tax deferred) and Post-retirement (taxable & tax deferred).
In order to navigate between and view the details of the various account allocations, click on the pie charts on the right side of the screen.
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You can now select from the drop-down menu of pre-designed asset allocations, or create your own unique asset allocation. (If the questionnaire was completed, the suggested allocation will be displayed until you choose another allocation.)
If you choose to create your own asset allocations, a pop-up window will ask you to name the allocation and to assign the assets to the specified classes. Clicking "Save" will add that asset allocation to the drop-down menu for all plans created for that client.
Your returns will be auto calculated, unless you deselect the checkbox labeled "Auto Calculate Returns". Deselecting this box allows you to enter in your own returns to be graphed.
The site will automatically calculate a pie chart graphically representing the allocation that was chosen.
The site will also plot the asset allocation on an “efficient frontier” graph, in order to illustrate how the potential annual downside risk correlates to the assumed return assumption of the allocation relative to the other pre-designed allocations on the site.
You may either manually input up to three “assumed” returns based on the asset allocation chosen, or you can click "Auto Calculate Returns", which will automatically calculate three annualized returns specific to that allocation.
The site will allow you to model the annual investment expense associated with the financial plan. The Investment Expense input allows you to reduce the historical returns of the audit by the assumed expense rate.
If you wish to switch to using Method Two to enter your allocations, click on "Switch to Risk & Return Allocation Mode".
* Method Two supports Monte Carlo calculations methods only. If you are using another type of calculation, you will receive a warning message and must click "Yes" to use Monte Carlo instead in order to use Method Two.
If you prefer to enter risk, return, and yield values directly, choose Method Two for inputting your asset allocations. This method allows you to enter fixed risk, return, and yield assumptions and to calculate assumes, optimistic, and pessimistic percentages for these figures. These calculations can be done for pre-retirement and post-retirement. Clicking the pencil icon next to the appropriate entry below the Assumptions fields allows you to select the period with which you wish to work.
In this section, you can enter in your risk, return, and yield assumptions or calculate them by clicking "Calculate" and entering information on your assets.
This section provides you with the assumed, optimistic, and pessimistic return percentages. These are auto-calculated unless you deselect the "Auto Calculate Fixed Returns" checkbox. Doing this allows you to enter numbers for assumed, optimistic, and pessimistic returns.
You may also click the "Remove" button to remove Optimistic and Pessimistic returns from the equation. Clicking "Add" will add both Optimistic and Pessimistic returns in.
To add holdings to the site, click on the button corresponding to the type of asset you would like to add. A window will appear in which you can fill in the asset information. Click the HELP button in the window for specific information on each field.
Once saved, the holding will be listed on your main Holdings screen and can be edited or removed.
To add a Contribution, click on the following button:
When this button is clicked, a pop-up will appear allowing you to select the type of contribution and input a start age, an end age, and an inflation rate. The Inflation/Growth percentage will automatically be set to the “default” rate that was set on the Personal screen, unless you override it.
When inputting start and end age, there are two options as to how to reflect the information. You can input the specific ages or simply identify them as "now", "retirement", "end", or "death".
Once each contribution is saved, the information will appear on your main Contributions page. You can edit and/or remove this information at any time. Click the HELP button in the window for specific information on each field.
To add Withdrawals to the plan, click the following button:
Like Contributions, each Withdrawal needs a Start Age, End Age, and Inflation/Growth % associated with it. Again, the Inflation/Growth % will be the “default rate” that was set on the Personal screen, unless changed.
The withdrawal will be calculated as having been taken from the most tax-advantageous account. Click the HELP button in the window for specific information on each field.
On the Withdrawals screen, you will also input what desired Annual Retirement Income Need is associated with this plan. If the retirement income input is pre-tax, then check the "adjust for taxes" box.
Checking this box will reduce the gross income need by the client’s post-retirement tax rate. For example, if the post-retirement income tax rate is 25%, and you want a $100,000 gross income, put $100,000 in the retirement distribution box and check “adjust for taxes.” Your net need will automatically be calculated at 25% less than $100,000 and will show in the printed report as $75,000.
To add a child to plan, click "Add New Child", and to add another entry for a child already listed, click "Add Known Child":
Known children will be listed in the drop-down box, from which they can be selected to create a new entry.
A new section will appear when either of these buttons is clicked. In this section, enter the child's name and birthdate, select whether or not the education will be provided from the investments (thus calculated), and choose the inflation percentage rate. You can also fill in the start and end ages and costs for each level of education for which the plan is responsible.
Click the HELP button on the screen for specific information on each field.
Tax Assumptions in our system are very conservative. It is our belief that since one cannot predict what taxes will be in the future, using the marginal tax rates is an acceptable means of hypothesizing or estimating what a person may pay.
To calculate the annual investment yield modeled in each plan, you have the choice to use historical yield data or to enter the data into the fields provided.
Using the historical yield data option means that the calculation engine is going to use each assets historical yield for each given year in that corresponding year. (i.e. when modeling what the plan did in 1940, the engine will use the actual average large cap yield for 1940.) Using this option means that the yield inputs will vary with each year and each asset class throughout each of the rolling market periods.
If you choose to enter yield data then you can manually input what yield assumptions the calculation engine will use throughout the entire plan, and in all historical periods. The method will calculate using the static yield inputs that you entered throughout the plan.
When you click this button, new input fields will appear. Enter the information regarding the retirement income, including:
the name and type of account
whether it belongs to the plan holder (self) or spouse
the start and end ages
the withdrawal method and type (these fields reflect whether the withdrawal will be an entire/absolute or percentage withdrawal)
the annual amount of the income withdrawal and the inflation rate
Click the HELP button on the Retirement Income screen for specifics on each entry field.
The site now allows you to estimate your Social Security Income beginning at ages 62 through 67. If you would like the site to automatically calculate the estimated Social Security Income, after selecting the age when the benefits are likely to begin, click on the "Automatically Enter Social Security Amount Below" button. The annual income amount will then appear in the "Other Sources of Retirement Income" box.
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Note: Social Security benefits are added automatically as a source of retirement income. The start age is the age selected in the Social Security Information table.
To alter the amounts or the ages, click the "Edit" button to the right of the entry, make the necessary changes, and then click on "Save" or use the "Save My Changes" feature to record the changes.
The "Other Sources of Retirement Income" group should also be used for all other outside cash flow that the user anticipates receiving during retirement, including pensions. To input an additional source of income simply click on the "Add Source of Retirement Income" button. |
The "Adjust for Taxes" box reduces the amount available from that source of income by the post-retirement tax rate. If that box is not checked, the entire amount will be assumed to be available to offset the users retirement income needs. |