NaviPlan User Manual: Forecaster Assessment
Contents
1. Fi Group LTD Beth Group LTD i V 3 Months 65 Years of Age x M Group STD Beth Group STD ly 2 Weeks 3 Months Forecaster section Disability Income To enter the your clients existing disability insurance policies follow these steps 1 Go to the Disability Income page 2 Enter the Income Need in Event of Disability either as a percentage of current household income or a specific dollar amount 3 For any short term and long term coverage enter the following m adescription m the insured client m the policy type m the monthly benefit amount m the monthly premium amount m the waiting period m the benefits period Page 15 of 28 NaviPlan User Manual Forecaster Assessment Viewing goal coverage progress NaviPlan allows you to quickly view Current Results for clients projected net worth cash flow and goal coverage progress based on the information you have entered in the analysis so far It also recommends steps that clients could take to achieve 100 goal coverage Current Results are available for the following goal types m Retirement m Education m Major Purchase m Survivor Income m Disability Income Note The actual goals that appear your screen will depend on the modules you selected on the Modules screen during goal creation Page 16 of 28 NaviPlan User Manual Forecaster2. Current Amount Saved 40 Current Monthly Savings 0 Assumed Return Rate 6 00 Forecaster section Education To enter the assumptions to use for your clients education goals follow these steps 1 Go to the Education page 2 Under Education Objectives enter m the estimated annual education costs in today s dollars o You can click to search for the cost of attending a specific North American school m apercentage to index costs by m the dependent s age when the education goal begins m the duration of the education goal NaviPlan calculates the Total Projected Cost value by indexing each annual cost individually by the rate entered in the Index Costs by field from January 1 of the assessment year to December 31 of the year prior to the last year of the education goal Page 9 of 28 NaviPlan User Manual Forecaster Assessment 3 Under Investment Accounts for Education enter the current amount saved the current monthly savings and the assumed rate of return Savings earn the return specified in the Assumed Return Rate field until the account is depleted Non qualified savings are assumed to be deposited into a joint non qualified account The amounts in the Current Amount Saved fields are assumed to be saved on January 1 of the plan year whereas monthly savings begin in the current month The monthly savings end on December 31 of the year before the last year of the goal Page 10 of 28 NaviPlan User
3. Select Report Build Report Select a Template or Start a New Report Getting Started Sort Order Alphabetical v START A NEW REPORT START A NEW TEMPLATE Custom Templates Colin s Custom 1 Custom Content Test F12 Visible regression testing a eens only visible to level 2 and FA More INA More v Results category Client Reports Select Reports page Term Definition Report Page A report page is a single topic Each tile on the Build Report page adds pages to your report A report is a collection of report pages After you have added each of the report pages you Report wish to present to your clients on the Build Report page the output is called a report A template is a report that has been saved for multiple uses By saving reports as a template Template you can present the same set of report pages to all of your clients saving you time and ensuring consistency Report Pages can be viewed as tiles or panels by selecting either 23 or iiif at the top of the page Cover Page Table of Contents This is a general cover page It This report generates a table of includes the client s name s contents showing each report page advisor s name s as well as the date you have included in your report or of report creation template Remove ADD Tile View Financial Snapshot This report displays a high level overview of the current plan on a single page ADD Table of Contents Financial Snapshot
4. Manual Forecaster Assessment Major Purchases NaviPlan compares all needs associated with the major purchase goal to the resources available to fund major purchases If a shortfall or overfunding is expected NaviPlan will present suggestions to attain 100 goal coverage In the Forecaster Assessment you can enter up to three major purchase goals Major Purchase Objectives Goal One Goal Two Goal Three Description Major Purchase 1 Major Purchase2 Major Purchase 3 Purchase Date Jan 12019 Jan 12019 Jan 12019 Cost in today s so sol s0 Index Cin by 30096 3 009 3 00 Total Projected Cost 0 0 0 Investment Accounts for Major Purchases Goal One Goal Two Goal Three Current Amount Saved 0 50 50 Current Monthly Savings 50 0 0 Assumed Return Rate 5 00 5 00 5 00 Forecaster section Major Purchase To enter the your clients major purchase goals follow these steps 1 Go to the Major Purchase page 2 Under Major Purchase Objectives enter m the description m the purchase date m the current value of the cost m the cost index rate NaviPlan calculates the Total Projected Cost value by indexing each annual cost individually by the rate entered in the Index Costs by field from January 1 of the assessment year until the month prior to the the purchase month 3 Under Investment Accounts for Major Purchase enter the current amount saved the current mon
5. Microsoit Word output Follow these steps to convert any generated report into a Microsoft Word docx export file 1 Selectthe pages to include in your report then click Build Report 2 Once the report is generated a blue bar appears near the top of the page From this bar click Convert to Microsoft Word to generate the report in Word format Creating a new report template Follow these steps to create a new template From the Select Report page select Start a New Template Select to enter a name and description for the template Use the Select a category menu to display a list of report pages for a category or a PE Report pages are displayed as tiles Select Add for each tile you want to include in your template To remove atile select Remove m Report tiles are categorized by the following sections o Current Plan Pages that summarize data for the current plan These pages are numbers oriented and often contain projection tables 5 Review the order of report pages in the Selected Pages panel The order displayed here matches the order in which reports will appear when generated To edit the position of report pages drag and drop the page titles into the order you would like 6 When you are satisfied with these options select Save m If you have not yet entered a name for your template you will be prompted to do so now Using a template to create a report Follow these steps to generate a report using
6. amounts either by individual category or as one summary expense in the Other field NaviPlan will provide the Total below Note The last four fields are greyed out and unavailable These values are entered on the Assets amp Liabilities page Page 5 of 28 Entering savings and investments Investment Accounts for Retirement Eric Qualified Accounts 7 829 Current Value Current Monthly Savings 5200 Monthly Savings Employer 5200 Non Qualified Accounts Caten Value 12 000 Current Monthly Savings 5450 Assumed Return Rate 6 00 Forecaster section Savings amp Investments To enter clients current investments and savings follow these steps 1 Go to the Savings amp Investments page NaviPlan User Manual Forecaster Assessment 2 Enter the Current Value and Current Monthly Savings amounts and the amount of monthly savings from an employer for the client and co client s individual qualified accounts as well as for their individual and joint non qualified accounts 3 Enter the Assumed Return Rate for all accounts Page 6 of 28 NaviPlan User Manual Forecaster Assessment Clients Goals Retirement Here isa summary of the considerations NaviPlan makes to analyze retirement goals in a Forecaster Assessment Retirement Dates m Retirement begins on the date specified for the first client to retire m Retirement ends December 31 of the year when the last client dies m Navi
7. clients can understand Summary Pages that cover clients progress toward achieving their goal based on their current situation These contain easy follow graphs and images Current Plan Pages that summarize data for each goal in the current plan These pages are numbers oriented and often contain projection tables Proposed Plan Pages that summarize data for the proposed plan These pages are numbers oriented and often contain projection tables Alternative Plan Pages that summarize data for the alternative plans These pages are numbers oriented and often contain projection tables This pages will appear after including additional alternative plans in the Select Plan Data for Reports section found on the top of the next gen report builder m Report pages display data for their section For example The Cash Flow Surplus Deficit report page will display different data when selected for the Current Plan section than when selected for the Proposed Plan Page 22 of 28 NaviPlan User Manual Forecaster Assessment 5 Review the order of report pages in the Selected Pages panel The order displayed here matches the order in which reports will appear when generated m To better organize your pages you can add sections to your report with the Add Sections button This will add a new sub section in your report to which you can combine similar pages to become a grouped section A corresponding section page with the sectio
8. m Generating Monte Carlo simulations Analyzing client goals m Creating goal scenarios m Creating estate planning scenarios m Generating client reports Page ii of 5 NaviPlan User Manual Forecaster Assessment Conventions This user guide uses the following conventions m The names of items on the screen are bolded and italicized For example the Clients page opens m The names of items that you must select click or enter appear in bold For example select Recommended and then click OK m To help you navigate through the application locations are separated by en dashes For example Enter Financial Data section Net Worth Accounts NaviPlan Premium Client Information Net Worth Client List Assets Liabilities Accounts Annuities Equity Compensation Asset Class Weight Enter new accounts define how d and edit investment ince Plan List Modules To edit investment income earne non qualified accounts Previously Incurred Investment Activity Assumptions Asset Allocatiog Qualified and Non Qualified Accounts Enter Financial Data Category Account Cad Pies New account 40 1 k John kad 520 000 Strategies New account Non Qualitied w Joint bd 550 000 Insurance Coverage Nebulous other acc IRA John ka 525 000 Tax Details di Goal Funding Retirement Enter Financial Data section Net Worth category Accounts page To help you use this guide please n
9. the following options m Percentage of Current Income NaviPlan calculates the percentage of the clients current income that you entered on the Incomes amp Expenses page and uses this amount as their retirement income need for the entire duration of the retirement period m Monthly Need in today s dollars Manually enter up to three phases during which the clients retirement income need will be based off of the dollar amount that you enter Each phase will begin when the first client to retire reaches the specified age Page 8 of 28 NaviPlan User Manual Forecaster Assessment Education NaviPlan compares all needs associated with the education goal for each dependent to the resources available for education funding If a shortfall or overfunding is expected NaviPlan presents recommendations for each education goal In the Forecaster Assessment each dependent can have one education goal In the Forecaster Assessment education assessments can only be done for dependents they cannot be done for the client or co client If no dependent was added when the client file was created go to the Client Management Client Information Personal Information page and then add the family member Education Objectives Frank Annual Education Costs in today s 0 D Index Costs by 300 Education Start Age 18 2031 Number of Years Total Projected Cost Investment Accounts for Education Frank Non Qualified Accounts
10. 7 Inthe Ongoing Incomes container you can select to Include Incomes as Entered in Plan on the Incomes amp Expenses page and or Include Social Security to include these values in the Survivor Income analysis 8 In the Assumptions container enter the Inflation Rate Assumed Return Rate and the Survivor s Tax Rate 9 NaviPlan displays the total recommendation for additional life insurance in the Results container If there are instances in the survivorship cash flow where surpluses will be available in the future but are not available to cover expenses today you will see a line for Present Value Adjustments to account for these Page 14 of 28 NaviPlan User Manual Forecaster Assessment Entering disability insurance coverage and disability income needs Disability policies in the Forecaster Assessment are assumed to provide non taxable flat dollar amounts that are not indexed for inflation The owner of the policy is expected to pay for the premiums and be the recipient of disability benefits Disability Information Current Household Income 5127 000 Eric 10096 Income Need in Event of Disability 96 of income or Disability Insurance ADD DISABILITY INSURANCE v Description 3 Insured Policy Type Benefit Premium Waiting Period Benefits Period Actions Group LTD Eric Group LTD y N 3 Months 65 Years of Age x Group STD Eric v Group STD l 2 Weekss v 3 Months
11. Assessment Tracking net worth and cash flow projections Viewing goal coverage progress To track projections of clients net worth and cash flow or to view their goal coverage progress follow these steps 1 Go to the Quick Actions menu and select Current Results 2 Select either the Net Worth or Cash Flow tab to view projections of the clients financial situation 3 Selecta tab for one of the goals for which you would like to view the coverage m The goal coverage graphs are interactive hover over a bar to the view the details for that particular year m You can click on labels in the graph key to hide or display the associated category from the graph 4 View suggested methods to achieve 100 goal coverage under Options to Increase Goal Coverage 5 Once you ve reviewed your clients progress and the suggested options to increase coverage click Close to return to where you left off Current Results Results based on data entered up to the point of generating these results Net Worth CashFlow Retirement Education Survivor Income Disability Income Education University Education v Goal Coverage 26 Investments at End of Goa I 0 Options to Increase Goal Coverage Cover of Expenses 25 3 182 1 118 20 000 542 418 2014 2016 2018 E Net Withdrawals MJ EOY Capital MB Shortfall CLOSE Current Results dialog box Education tab Page 17 of 28 NaviPlan User Manual Forecaster Assessment Pr
12. E EE EE EE ESE Ee Ee 11 Clients Insurance Coverage amp Needs GE GE GE eee GE GE GE GEE EE GE GE ee 12 Entering existing life insurance policies EES ESE EE EE GE EE EE EE eee EE EE EE ESE EE eie 1 2 Determining additional life insurance needs AA 13 Entering disability insurance coverage and disability income needs 15 Viewing goal coverage progress EES SES SEG GE EG cece ec eee cece cece SG EG SE EE GEE SE Gee Eie 16 Tracking net worth and cash flow projections Viewing goal coverage progress EES EE 17 Preparing personal notes for reports EG EG ce cee eee GE GE EE EE EE EG Eie 18 Managing quick picks for user defined text EE EE GE EE EE EE ce ee EE EE EE EG ESE Eie 19 Adding user defined text to reports EE EES ES ES ES SG EES GE GE GE GEE GE GE GE GE EE EE 222222222 19 Client Reports 20 Page O of 5 NaviPlan User Manual Forecaster Assessment an Zi eel Dates APA 21 Cheating a NeW TEDO ss NE SEEN eu te ee ald EA DE oe DE nayan pk SEE ED 22 Adding custom content to a report ad saat EE AA EG EE EE GE SE Ee EE ed AAE 23 Converting reports to Microsoft Word output sis VEE OD EE ee EE EE ee ee EE GE 24 Creating a new report template EES EE ESE GE GEES GE GE EG SG EG EE EG EG GE GE EE EE Ee Eie 24 Using a template to create areport EE EE EE ES EE EE GE EE EE EE GE GE EE EE SEE EE GEE 24 Vele ARE N EE GE EO EE ER OE OE OE 25 Page i of 5 NaviPlan User Manual Forecaster Ass
13. Hi ADVICENT NaviPlan User Guide Forecaster Assessment Volume III of VII NaviPlan User s Guide USA Version 15 2 Copyright and Trademark Copyright 2013 2015 Advicent LP and its affiliated companies Advicent All rights reserved Advicent and NaviPlan are trademarks of Advicent No part of this publication may be reproduced or transmitted in any form by any means electronic photocopying recording or otherwise without the written permission of Advicent Microsoft Word is a registered trademark of Microsoft Corporation Adobe and Acrobat are trademarks of Adobe Systems Inc All other product names are the sole properties of their respective owners Software License This publication is intended for use by authorized licensees of Advicent s proprietary NaviPlan software described herein This publication does not grant any license or right to use of the software and use of the software or this publication is prohibited by anyone who is not an authorized licensee All licenses rights and restrictions on use of the software are governed by a separate license agreement Disclaimer The software described in this publication is designed to allow a financial planner to demonstrate and evaluate various strategies in order to achieve a client s financial goals It is licensed to authorized licensees on the understanding that Advicent is not engaged in rendering legal accounting or other professional advice and if any s
14. Panel view i Page 20 of 28 NaviPlan User Manual Forecaster Assessment Organizing Templates To organize templates either in Alphabetical or Last Modified Date follow the below instructions 1 From the Select Report page click the Sort Order dropdown Sort Order Alphabetical Alphabetical Last Modified Date Results Client Reports Select Report Section Sort Order 2 Choose the preferred option of organization Note You may adjust the order at any time Page 21 of 28 NaviPlan User Manual Forecaster Assessment Creating a new report For a guided walk through to help you get started on the Build Report page click Getting Started above the Selected Pages panel You re also welcome to send us your suggestions by clicking Feedback Feedback Getting Started Follow these steps to create a new report A p pP P From the Select Report page select Start a New Report Use the Select a category menu to display a list of report pages for each category For multiple education and major purchase goals use the Select a goal menu to navigate between goals Report pages are displayed as tiles Select Add for each tile you want to include in your report To remove a tile select Remove m Report tiles are categorized by the following sections O Content Dataless pages that provide an overview of the financial topic at hand These provide context to reports and relate plans in a way that
15. Plan assesses needs in each year of the retirement period and compares them to the resources available for retirement funding If either a shortfall or overfunding is expected NaviPlan presents recommendations Retirement Needs m Include desired annual retirement income and liability payments that extend into the retirement period Do not include taxes or life insurance premiums o NaviPlan calculates taxes automatically insurance premiums are entered on the Life Insurance page m Lifestyle assets such as homes are not sold to fund retirement needs Retirement Resources m Include estimated annual pension income Social Security eligibility and all qualified and non qualified accounts Page 7 of 28 Entering retirement assumptions Retirement Information Retirement Age Life Expectancy Social Security Eligibility Retirement Needs Percentage of Current Income O Monthly Need in today s dollars Age Phase 1 65 Phase 2 0 Phase 3 0 Index at Forecaster section Retirement NaviPlan User Manual Forecaster Assessment 70 Monthly Need 7 408 0 0 3 00 To enter the assumptions to use for your clients retirement goals follow these steps a o TY Go to the Retirement page Under Retirement Information enter the Retirement Age and the Life Expectancy Indicate the clients benefit eligibility by selecting the Social Security Eligibility options Under Retirement Needs select one of
16. a vehicle v Survivor Income Assess your life insurance needs in the event of premature death v Disability Income Assess your disability insurance needs in the event of disability SELECT ALL SELECT NONE anc Select Modules dialog box Page 2 of 28 NaviPlan User Manual Forecaster Assessment Selecting analysis methods Two types of tax methods are available in Forecaster Assessments Average Tax and Detailed Tax Average Tax Method When using the Average Tax method average taxes apply including the state tax rate specified in the Settings menu Plan Settings General tab If you selected the Average Tax method during assessment creation you can convert to the Detailed Tax method by clicking Convert to Detailed Income Tax on the Select Modules page Once you have converted to the Detailed Tax method you cannot revert to the Average Tax method Detailed Tax Method When using the Detailed Tax method NaviPlan applies the bracketed federal and state rates including tax deductions credits and AMT to taxable income on a year by year basis These tax rates are not editable Page 3 of 28 NaviPlan User Manual Forecaster Assessment Clients Financial Data Entering assets and liabilities Assets Liabilities Asset Amount Outstanding Interest Monthly _ Liability Amount Rate Payments Residence Mortgage so 7 00 2nd Residence so 8 00 Personal Use Property a so 8 00 L
17. an existing template 1 From the Select Report page find the template you want to use to create a report and select Use 2 When you are satisfied with these options select Build Report Page 24 of 28 NaviPlan User Manual Forecaster Assessment Index A accessing Help iv assets 4 assumptions retirement 8 Average Tax method iii 3 C client reports adding custom content pages 23 adding custom text 19 converting to Microsoft Word 24 creating new reports 22 creating new templates 24 custom text 18 customizing 18 display modes 20 overview 20 conventions user manual iii criteria education 9 major purchases 11 retirement 7 current results goal coverage 16 options to increase goal coverage 17 Page 25 of 28 custom text adding to reports 19 creating 18 managing Ouick Picks 19 saving Ouick Picks 18 D Detailed Tax method iii 3 disability insurance existing policies 15 E education overview 9 savings 10 expenses 5 F financial goals 7 current results 16 education 9 10 major purchase 11 options to increase goal coverage 17 retirement 7 8 Forecaster Assessment Overview 1 H Help accessing iv NaviPlan User Manual Forecaster Assessment Page 26 of 28 incomes current annual income 5 disability income 15 survivor income 12 investments 6 liabilities 4 life insurance calculating additional needs 12 existing policies 12 M major purchases overview 11 savings 11 mod
18. are now entered on the Savings amp Investments page rather than the Retirement page m Forecaster introduces the popular Next Gen report format to a lower planning level Reports are still as detailed and configurable but much more client friendly now m Real time goal coverage progress is now available from the Quick Actions menu under Current Results and on each goal page by clicking Current Results Page 1 of 28 NaviPlan User Manual Forecaster Assessment Assumptions Selecting financial goals to assess The Select Modules page displays the assessment s modules and available options Enabled modules are checked Click Select Modules to change the available modules in this assessment Modules Retirement Education w Major Purchase Survivor Income w Disability Income SELECT MODULES CONVERT TO DETAILED INCOME TAX Forecaster Assessment section Forecaster Assessment category Select Modules page Average Tax method selected To change the selected modules go to the Select Modules page and then click Select Modules A dialog box opens where you can clear or select modules Select Modules Modules Select one or more of the following modules Retirement Compare your current financial situation with your retirement goal v Education Assess the cost of funding a post secondary education goal such as college v Major Purchase Assess the cost of funding a major purchase goal such as
19. eparing personal notes for reports In NaviPlan you can create and customize text that will be included in reports Personalize your plans and presentations by entering text on goal progress recommendations and any specific action items you would like clients to pursue To enter personalized text for reports follow these steps 1 Go to the Reports User Defined Text page 2 Under Objectives Recommendations or Action Plan click Add User Defined Text Entry My Quick Picks Save to my Quick Picks for future use ADD TEXT ENTRY v Previous Entry Next Enty P CANCEL User Defined Text Entry dialog box a B9 a Se Enter the text in the dialog box and then use the formatting buttons where applicable Note A spelling checker is not available Use your browser s spell check or copy and paste plain text from Microsoft Word Graphics are not supported If you would like to use this text across multiple plans or with multiple clients select the Save to my Quick Picks for future use option When you are finished click OK To edit an existing entry click to reopen the User Defined Text Entry dialog box for that entry To reorder entries within a category click Move Up or Move Down Repeat steps 2 7 until all your entries are complete Page 18 of 28 NaviPlan User Manual Forecaster Assessment Managing duick picks for user defined text To access and manage any existing duick picks follow
20. essment NaviPlan User Guide Series NaviPlan user guides are organized by the tasks you can accomplish in each level If you are a new NaviPlan user start with the Introduction user guide User manual Tasks covered m Setting up user preferences m Creating and managing client engagements Introduction m Determining which assessment or plan level to select m Using NaviPlan workflow Calculators m Using calculators to model specific aspects of your clients finances m Quickly assessing your clients current financial situation Forecaster Assessment l o l m Entering account and annuity information Asset Allocation Assessment m Determining your clients investor profile m Entering financial planning assumptions m Entering detailed net worth cash flow and insurance information m Adding holdings to accounts and annuities m Entering business entities m Entering real estate assets m Entering equity compensation Level 1 and Level 2 Plans m Entering detailed estate planning information Entering client data and goals 6 p 6 m Entering advanced estate planning information m Using the Detailed Tax method and Detailed Cash Flow m Entering saving and redemption strategies m Entering client goals m Generating simple estate planning reports m Generating client reports m Analyzing your clients goals using Scenario Manager m Conducting detailed cash flow and net worth analyses Level 1 and Level 2 Plans
21. ll end Page 12 of 28 NaviPlan User Manual Forecaster Assessment Determining additional life insurance needs To determine clients life insurance needs follow these steps 1 Go to the Survivor Income page 2 Select the scenario for which to run the quick assessment m If the Client dies m If the Co Client dies m If Both die 3 To include the calculated life insurance amount as a Survivor Income goal for your clients select Include in Analysis Include in Analysis Lum P Sum Needs _ Lump Sum Needs Override 7 ib Copy Lump Sum Needs from CoClient s Assessment Mortgage Principal All Other Loans 0 Education Goals Emergency Fund 0 Final Expenses burial probate etc 100 000 Any Additional Needs I so Total Lump Sum Needs 2100 000 Forecaster section Survivor Income if Client dies Lump Sum Needs container 4 Inthe Lump Sum Needs container enter the amount your clients would like to save in their Emergency Fund and the anticipated amount of their Final Expenses m NaviPlan automatically includes any liabilities and the cost of any Education goals entered elsewhere in the assessment To use different values select Lump Sum Needs Override 5 In the Ongoing Needs container do one of the following m If you are fairly certain what the clients ongoing needs would be in the event of a premature death enter either a dollar amount or a percentage of their current household income under or
22. n name will be printed in the report m To edit the position of report pages drag and drop the page titles into the order you would like C3 Add Section a Select All N Remove BUILD REPORT Results Client Reports Build Report Section Tip You can quickly select all report pages on the Selected Pages panel by clicking the Select All link 6 Click Select Plan Data for Reports to select which alternative plans education goals and major purchase goals to include in the report 7 When you are satisfied with these options select Build Report Tip If you run out of space on the Select Pages panel you can select NI Expand to enlarge the panel Adding custom content to a report Follow these steps to add your own supplementary content e g client s wills other estate planning documents etc in PDF format to a report From the Build Report page select the Custom Content report tile Use the Choose File button to find your custom PDF Enter a Title for the custom content Ss Ti SS When you are satisfied with these options click OK Note The following requirements apply m Maximum of 1 PDF per report 10MB or less Custom Content can also be uploaded in User Preferences Content Settings After uploading you can add these files to reports by selecting the category the content is uploaded under and press the Add button Page 23 of 28 NaviPlan User Manual Forecaster Assessment Converting reports to
23. oans Car Loans Other Personal Assets Personal Other so 12 0096 Total Total 0 Forecaster section Assets amp Liabilities To enter clients current assets and liabilities follow these steps 1 Goto the Assets amp Liabilities page 2 Under Assets enter the current value of each asset by category NaviPlan will provide the Total below 3 Under Liabilities enter the outstanding amount interest rate and monthly payment amount for each liability by category NaviPlan will provide the Total below Page 4 of 28 NaviPlan User Manual Forecaster Assessment Entering income and expenses Annual Income Eric Beth Annual Income 485 000 442 000 Estimated Annual Pension Income in today s 55 000 17 545 Monthly Expenses Expense Amount Housing e g utilities repairs 1 200 Food 5350 Transportation e g gas insurance 125 Entertainment e g restaurants movies 4125 Personal e g clothing hobbies 40 so Other e g child care travel Mortgage 0 Car Loans 0 Personal Loans 0 Other Liabilities 0 Total Forecaster section Incomes amp Expenses To enter clients current annual income and monthly expenses follow these steps 1 Go to the Income amp Expenses page 2 Under Annual Income enter the Annual Income and the Estimated Annual Pension Income for the client and co client 3 Under Monthly Expenses enter the monthly expense
24. of Salary and the number of years to which the needs apply m To calculate the amount of income that would be lost and the new expenses that would arise from a death click to open the Ongoing Needs calculator Page 13 of 28 NaviPlan User Manual Forecaster Assessment Ongoing Needs ADD ONGOING NEED O 5 or of Income Annual Ongoing Needs are 0 for O years B O You require 50 to meet your calculated ongoing need Forecaster section Survivor Income if Client dies Ongoing Needs container Calculate button Ongoing Needs dialog box 6 In the Available Assets to Offset Needs container NaviPlan displays any assets that the survivor could sell to offset the immediate needs following the spouse s death as well as the value of any existing life insurance policies To use different values select Available Asset Override Available Assets to Offset Needs C Available Asset Override IR Copy Available Assets from CoClient s Assessment Realizable Assets 0 Existing Lite Insurance Policies 0 Total Available Assets 50 Forecaster section Survivor Income if Client dies Available Assets to Offset Needs container Ongoing Incomes Include Incomes as Entered in Plan C Include Social Security 65 Age to Begin Retirement Social Security Benefits You will receive 0 in ongoing incomes to apply to your ongoing needs Forecaster section Survivor Income if Client dies Ongoing Incomes container
25. ote the following abbreviations and graphics m FA Refers to the Forecaster Assessment m Indicates that the step or paragraph applies to Level 1 Plans only m Indicates that the step or paragraph applies to Level 2 Plans only E Indicates that the step or paragraph only applies when you are using the Average Tax method m Indicates that the step or paragraph only applies when you are using the Detailed Tax method Page iii of 5 NaviPlan User Manual Forecaster Assessment NaviPlan Resources Advicent provides several resources to help you use NaviPlan The following table shows some of the resources available and where to find them Advicent resource Description and location The quickest way to get information about any item within NaviPlan is to use the Help application Help To access Help select NaviPlan Help from the Help amp Resources menu Help includes a glossary of terms Functional documents explain NaviPlan functionality underlying assumptions Functional and results calculations You can access functional documents on specific topics Documents on the related page in the NaviPlan Learning Center or a list of all available functional documents on the Functional Documents page Ouick Reference Guides are designed to get you started with a particular Ouick Reference workflow in NaviPlan You can access ORGS on specific topics on the related Guides ORGS page in the NaviPlan Learning Center or a list of all a
26. perfect for new clients or for clients with simpler financial situations and goals It was designed to follow the conversations you have with clients to quickly obtain a picture of your clients current financial situation and to assess if their financial goals will be met Why was the Financial Assessment planning level upgraded to the Forecaster Assessment NaviPlan has always been noted for its adaptability especially for high net worth clients This update aims to make NaviPlan equally as friendly for clients on the other end of the spectrum or new clients who just want a quick financial overview m Forecaster uses a more intuitive data entry flow and allows you to dive deeper into insurance needs m Forecaster brings an entirely new set of client reports that are easier to understand Reports are still as detailed and configurable but much more client friendly m Any client information saved in a Financial Assessment is still available in the Forecaster Assessment It s a fresh perspective on the same data What are the differences in the Forecaster Assessment Forecaster uses the left hand navigation bar to bring it closer to the layout of Level 1 and Level 2 plans Survivor Income and Disability Income have been separated to allow for more in depth discussions about life insurance needs Income amp Expenses Assets amp Liabilities and Savings amp Investments now have individual pages o Retirement investment accounts
27. these steps 1 On the User Defined Text page click Manage My Quick Picks 2 A list of all quick picks saved for the goal or category will appear m To add anew quick pick click Add To edit the content of an existing quick pick click m To delete a quick pick click x 3 Once you ve finished managing your quick picks click OK Adding user defined text to reports To add your user defined text to Next Gen reports follow these steps Go to the Reports Client Reports page On the Select Report page select either an existing template or click Start a New Report From the Select a category menu select Supplementary Pages POEA Depending on the type s of user defined text you entered Objectives Recommendations or Action Plan a report page will appear under the End of Report section 5 Click Add to include the page s containing your user defined text in the report Objectives Recommendations This report displays any user defined text This report displays the you hawe provided for your clients recommendations you have entered on financial goals the User Defined Text page Action Plan Tax Considerations This report displays the action plans you This report displays a list of important have entered on the User Defined Text and timely changes in tax law Page 19 of 28 NaviPlan User Manual Forecaster Assessment Client Reports Client reports can be accessed from the Results Client Reports section
28. thly savings and the assumed rate of return m All amounts saved earn the rate of return specified in the Assumed Return Rate field until the account is depleted m Accounts used to save toward major purchase goals are assumed to be joint non qualified accounts The amounts in the Current Amount Saved fields are assumed to be saved on January 1 of the plan year whereas monthly savings begin in the current month The monthly savings end on the last day of the month prior to the the purchase month Page 11 of 28 NaviPlan User Manual Forecaster Assessment Clients Insurance Coverage amp Needs Entering existing life insurance policies Life Insurance Cease Coverage Description Insured Policy Type Benefit Beneficiary Premium At Age On Date Life Insurance Eric v Term Life a 0 Beth NG so imo Never ADD LIFE INSURANCE v 7 Actions Life Insurance Beth v Term Life 0 Eric ox 0 mo Never Forecaster section Life Insurance To enter clients existing life insurance policies follow these steps Go to the Life Insurance page Enter a Description for the life insurance policy Select the Insured client Policy Type and Beneficiary Enter the Benefit amount and monthly Premium for all existing life insurance policies FF PP NY P Under Cease Coverage specify either an age or a specific date at which the life insurance policy wi
29. uch advice is required the services of a competent professional person should be obtained Advicent has engaged Ibbotson Associates Inc a wholly owned subsidiary of Morningstar Inc to develop proprietary asset allocation tools for educational purposes Ibbotson has granted to Advicent a license for use thereof USA version 10 29 2015 NaviPlan User Manual Forecaster Assessment Contents CONTENTS EE OE EE Oe Erre EE EE OE RE OE N EO N Oe N Ie N AN 0 NaviPlan User Guide Series ii Conventions __ 2 2 2 ee ee ee ee eee eee eee eee oaoa iii NaviPlan Resources EES ESE ES SEG GEGEE ee ee ee ee ee ee ee eee eee eee cece cece eee eee iv An Intro to the Forecaster Assessment SS eee eee ee ee eee ce eee eee eie ee 1 ASSUMPTIONS ices GE OE EE GO EE OO EO Ee 2 Selecting financial goals to assess 2 Selecting analysis methods AA 3 Clients Financial Data SESSE ee cece ee ee ce ee eee eee eee EES SS SS ee eie 4 Entering assets and liabilities a 4 Entering income and expenses u ESE ESE EE ES EE EE EE GE SEE EE EG EG EE EE EE EE ESE GEE 5 Entering savings and investments EES a 6 Clients Goals AA AA 7 KA AA AA AA AA 7 Entering retirement assumptions ___ 2 22 22 eee eee ce ee cee ee ce ee EG eee eee ence eee oaar 8 POC AMON EE ER EE OR EG EE ane vena AA E Ee N OE ON oes 9 Major Purchases EE EE EE EE EE EE GE EE EE EE EE GE EE EE EE eee EE E
30. ules selecting 2 N needs disability insurance 15 life insurance 12 P phone support iv R resources phone support iv NaviPlan User Manual Forecaster Assessment Page 27 of 28 training iv RESP 10 retirement assumptions 8 Overview 7 S Savings education 10 major purchases 11 retirement 6 tax methods Average 3 Detailed 3 Templates organizing 21 U user manual conventions lil series ii NaviPlan User Manual Forecaster Assessment Page 28 of 28
31. vailable ORGS on the uick Reference Guides page You can also access other user guides in this series You can access user guides on the User Guides page in the NaviPlan Learning Center Training videos are designed to give you an overview of completing a specific task in NaviPlan You can access videos on specific topics on the related page in the NaviPlan Learning Center or a list of all available functional documents on the Videos page The Take Action webinar series helps you get the best return on your investment in NaviPlan by showing you how to apply the software to real world Take Action situations You can access webinars on specific topics on the related page in the Webinars NaviPlan Learning Center or a list of all available functional documents on the Take Action Webinars page Partner Support Contact us by telephone at 888 692 3474 Monday Thursday 7 30 a m 6 p m central time Friday 7 30 a m 5 00p m central time Contact us by email at support advicentsolutions com Page iv of 5 NaviPlan User Manual Forecaster Assessment An Intro to the Forecaster Assessment NaviPlan s simplest planning level formerly known as the Financial Assessment has been upgraded with additional features usability enhancements and Next Gen reporting The upgrade provides such a new experience that we thought the level deserved a new name the Forecaster Assessment The Forecaster Assessment is a streamlined analysis
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