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NaviPlan User Manual: Level 1 & Level 2 Plans – Entering Data

1. Table of Contents Financial Snapshot Panel view ii Page 147 of 172 NaviPlan User Manual Entering Client Data Creating a new report For a guided walkthrough 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 Poe NB 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 clients can understand o Summary Pages that cover clients progress toward achieving their goal based on their current situation These contain easy follow graphs and images o Current Plan Pages that summarize data for each goal in the current plan These pages are numbers oriented and often contain projection tables o Proposed Plan Pages that summarize data for the proposed plan These pa
2. Lifestyle Asset Details dialog box Level 2 Plan NaviPlan estimates the before and after tax values of the asset on the sale date as well as the buying power of those values in today s dollars Page 33 of 172 NaviPlan User Manual Entering Client Data To enter details regarding asset return rates click the Return Rates link m If you do not want to use the default return rates and standard deviations associated with the asset under Return Rates select the Override option and then make your changes m If you do not want to use the default return rates and standard deviations associated with the asset under Return Rates select the Override option and then make your changes From the Lifestyle Asset Details dialog box you can m Create a new lifestyle asset by clicking Add Lifestyle Asset and selecting an option from the menu New lifestyle assets appear on the Assets Liabilities page under Lifestyle Assets m View or edit another lifestyle asset by clicking Next Entry or Previous Entry To generate the Assets Liabilities report go to the Assets Liabilities page and then click Assets Liabilities Report Page 34 of 172 NaviPlan User Manual Entering Client Data Entering liabilities You can enter many types of liabilities including mortgages loans credit cards and other debts Once entered you can link a liability to a lifestyle asset To enter liabilities follow these steps 1 Go to the Enter Financi
3. 2222 22 e ce cece eee eee cece cece cece ceececeeseeseees 16 Entering income tax rate assumptions Average Tax method _ 2 22022 22 eee ee eee eee cece eeeees 18 Entering tax credits and deductions Level 2 Detailed Tax method 2 22 222222 eee eee eee ee eee 19 Setting asset allocation assumptions 2 22 02 o cece ec e 20 Overview of predefined Asset Allocation 2 2 22 22 cece e eee cece aoa ccc e ccc eeceecceeeseceeeeseeeeees 20 Viewing predefined asset allocation assumptions 222 2 20222 c cece cee eee ee cece cece eceeeeeee 20 Determining the clients investor profile l 0 00000000000000 0000000000 aa 00a 0a ce eee LaaLa a a annan 21 Editing Asset Class Weightings oooocccccccccccccccccnconcn cre 23 Using the Optimize calculation o oooccccccccccccccccccccnccccnccnnnr rn 23 Overview of User Defined Asset Allocation 20 00020222 26 Setting up user defined asset allocation 000022 cee cee ee ee eee cess 26 Determining the clients investor profile with user defined asset allocation 2 222 30 Chapter 3 Entering net worth information 2022 0022 0 c cece cece cee eee e cece cece eee aoaaa 31 Entering lifestyle assets 22 22 22 o cece cece cece nn 33 Page i of 172 NaviPlan User Manual Entering Client Data Entering labilteS cocomanstaros canaria encarna ells dls s te paisa ar eee Kee 35 Entering fixed rate mort
4. Planning Assistant dialog box Reports tab Page 141 of 172 NaviPlan User Manual Entering Client Data 2 Select one of the following reports Introduction A summary of each of the reports available to you in the Planning Assistant TFSA Contribution Limits Details about TFSA contributions unused contribution room overcontributions and pension adjustments RRSP Contribution Limits Details about RRSP contributions unused contribution room overcontributions etc Cash Flow Summary of pre retirement cash flow surpluses and deficits This information is useful for seeing how the clients cash flow is affected by their goals and associated savings strategies Note The Planning Assistant is not designed to perform a detailed cash flow analysis For a more detailed report you can access the Cash Flow Details report from the Reports menu Net Worth Summary of all the assets and liabilities entered into the plan for the clients client co client and joint ownership and the net value and accumulated surplus deficit at the end of the plan year Action Plan Summary of the goals specified in the plan the current savings allocated to each goal and any additional savings that are required to achieve each goal 3 To print the Planning Assistant report displayed on the current tab click PDF or Word The report generates in its own window and can be printed from your desktop Page 142 of 172
5. 3 Under Education Expenses define the percentage of previously entered education expenses that will be covered by life insurance This option is only available if an education goal exists in the plan 4 Go to the Lump Sum Needs tab Assumptions OngoingExpenses Lump Sum Needs AssetAvailability Use this tab to enter and edit lump sum cash flow needs after the death of the primary family member s Under Additional Lump Sum Needs enter items such as funeral expenses Additional Lump Sum Needs Description EJ Amount Infl Add l Actions Lump Sum Need sol 0 00 9 Set Goals section Survivor Income category Both Objectives page Lump Sum Needs tab Level 2 Plan Goal and Expense Analysis method selected 5 Under Additional Lump Sum Needs enter one time expenses that will be covered in the event of death Enter a unique description for each expense and then enter all appropriate data Note Lump sum needs entered on the Client Co client Objectives page are also listed here 6 Under Estate Expenses NaviPlan lists estate expenses previously entered on the Set Goals section Estate Planning category Estate Expenses page 7 To indicate when accounts are to be made available for survivor and estate needs complete the procedure Assigning asset availability if both clients die on page 127 Income Coverage Analysis method if both clients die The Income Coverage Analysis option must first be
6. Net Worth Annuities page m Special income such as the tax free proceeds of new loans redemptions from assets used to fund goals as well as the proceeds from life disability and long term care insurance policies Special incomes are not entered on the Enter Financial Data Cash Flow page but instead are calculated by NaviPlan based on information entered in other parts of the plan For example when a loan is entered on the Enter Financial Data Net Worth Assets Liabilities page NaviPlan automatically counts the loan principal as special income Clients scheduled cash outflows for the year m NaviPlan calculates the income tax due on asset returns based on the income tax method selected o When the Detailed Tax method is selected in the plan NaviPlan applies bracketed federal taxes that consider an extensive number of deductions and credits o When the Average Tax method is selected in the plan NaviPlan uses the marginal tax rate entered under Tax Rates on the Plan Management Assumptions General page Special tax consideration is given for certain types of income for example dividends and capital gains Page 62 of 172 NaviPlan User Manual Entering Client Data m The default marginal and average tax rates displayed in the Plan Management Assumptions General page for each income range are average combined federal and provincial rates o To use a particular province s tax rates enter those
7. There are two methods for determining your clients ideal asset allocation in NaviPlan m Ibbotson predefined asset allocation o Utilize 13 asset classes to generate a suggested portfolio based on the completed asset allocation questionnaire o Automatic quarterly database updates to ensure investment accuracy m User defined asset allocation o Enter your own user defined asset classes and weightings o Data must be manually updated to reflect market fluctuations Important The methods available to you are based on the licence agreement arranged by your organization Overview of predefined Asset Allocation Viewing predefined asset allocation assumptions There are two aspects to predefined asset allocation in NaviPlan 1 The asset allocation questionnaire is used to determine your clients investor profile Once the investor profile is determined the expected rate of return is calculated as a weighted average of the underlying asset classes recommended in the suggested asset mix 2 Then you can compare the asset mix of your clients existing portfolio to NaviPlan s suggested asset mix You can also see the differences in expected rates of return expected standard deviation efficient frontier etc and make appropriate recommendations Asset allocation assumptions asset classes investor profiles and model portfolios are already set up for you You can view but not edit these assumptions Note Before you can
8. To indicate that the unpaid loan balance will be transferred to the survivor select Transfer to survivor from the Payoff Options at Death menu OR To indicate that the liability will be paid from the clients estate select Payoff at first death from estate from the Payoff Options at Death menu OR To model loans that are forgivable at death for example some student loans select Insured for life from the Payoff Options at Death menu This excludes the loan balance from the insurance analysis as well as from estate planning cash flow calculations To view the liability amortization schedule report for a liability on the Assets Liabilities page click Report beside the specific liability To generate the Assets Liabilities report click Assets Liabilities Report on the Assets Liabilities page Page 35 of 172 Entering fixed rate mortgages NaviPlan User Manual Entering Client Data Mortgages can be entered in NaviPlan with either fixed interest rates or variable interest rate periods To enter a fixed rate mortgage follow these steps 1 Go to the Enter Financial Data section Net Worth Assets Liabilities 2 Click Add Liability and then select Fixed Mortgage from the menu 3 Click 4 next to the new fixed mortgage 4 Enter a Description for the mortgage 5 Select the name of the Owner who has taken out the mortgage 6 Enter the Interest Rate and the Compound Frequency 7 Selectthe
9. Click the Fill Values link From the Column to Fill menu select the column of values you want to fill Enter the criteria you want NaviPlan to use to calculate the amounts Click Fill Page 73 of 172 NaviPlan User Manual Entering Client Data Entering expenses Use the following procedure to enter the clients lifestyle and business expenses Do not use this procedure to enter loan or mortgage payments insurance premiums property taxes or savings contributions Expenses that only apply to retirement should be entered on the Set Goals Retirement page To enter an expense follow these steps 1 Gotothe Enter Financial Data Cash Flow page When you create a new plan NaviPlan creates default entries for housing food transportation entertainment personal and other expenses Any expenses that were entered on the Set Goals Retirement page also appear Under Other Expenses NaviPlan lists expenses that have already been entered into the plan Description Housing e g utilities repairs Food Transportation e g gas insurance Entertainment e g restaurants movies Personal eg clothing hobbies Other e g child care travel Enter Financial Data section Cash Flow category Cash Flow page Level 2 Plan 2 To add anew expense click Add Expense and then select an expense type 3 To enter additional details for an existing expense on the Cash
10. Redeem Amount Redeem From All Sor Frequency Start Date End Date Infl Add l Actions New account Unlinked v mm 0 00 Monthly x Jljutto 2013 m Ret ist m 0 00 3 Account Details dialog box Redemptions tab Redemptions section Level 2 Plan Detailed Tax method 4 To redeem a portion of the account or all of the account over time in the Amount or field enter either the percentage of the account to redeem or an amount to redeem periodically based on the selection from the Frequency menu OR To redeem the entire account as a lump sum select the Redeem All option 5 Select the Frequency of redemptions 6 Enter the Start Date and End Dates of the redemption strategy Note The End Date field is not accessible if Redeem All or Lump Sum is selected 7 Toindex the strategy for inflation select the Infl option To index by an amount greater or less than the default inflation rate enter a different percentage in the Add field Note The Infl option is not accessible when Redeem All or Lump Sum is selected or a percentage of the account is entered 8 Click OK to save the redemption strategy Overriding calculated return rates for accounts NaviPlan calculates an overall return rate for an account based on the return rates and dollar value of the holdings in the account You can override the return rates for any account To override calculated return rates for an account follow t
11. 1 Go to the Enter Financial Data Net Worth Annuities page 2 Click 4 for the appropriate guaranteed withdrawal benefits 3 Go to the Payout Options tab Subaccounts Payout Options Savings Strategy Return Rates C Guaranteed Withdrawals Have Started Contract Information Contract Max Lifetime Min Age Reset Reset Reset Frequency Date Withdrawal for Guarantee Feature Eligibility Year in years Dec 312013 5 00 65 i 2014 lr Withdrawal Information Withdrawal Withdrawal Amount Current Benefit Base Start Date as of Maximum Benefit Base Growth Rate Ret 1st mm 100 00 soJ 000 Guaranteed Withdrawal Benefit Details dialog box Payout Options tab 4 If the payouts have started select Guaranteed Withdrawals Have Started 5 Under Contract Information enter the Contract Date the Max Lifetime Withdrawal and the Min Age for Guarantee the annuitant must reach before payouts can begin 6 If the annuity has a reset feature select the Reset Feature option Enter the first year the reset is available under Reset Eligibility Year and then set the Reset Frequency for subsequent years 7 Under Withdrawal Information enter the Withdrawal Start Date the Withdrawal Amount as a percentage of the maximum amount the Current Benefit Base and the Benefit Base Growth Rate Page 46 of 172 NaviPlan User Manual Entering Client Data Entering savings strategies f
12. 6 00 1 50 1 50 1 50 1 50 Set Goals section Disability Income category Client Co client Objectives page Assumptions tab Level 2 Plan Detailed Tax method and Income Coverage Analysis method selected 3 Select a method for analyzing disability insurance needs Goal and Expense Analysis assesses disability insurance needs to cover the clients goals and expenses Goals and expenses at the plan level and additional expenses entered for the disability insurance scenario are considered This method is integrated into the rest of the plan m Income Coverage Analysis assesses disability insurance needs to replace the clients income This method is independent of the rest of the plan 4 To override the client s or co client s default retirement age go to the Assumptions tab select Override the Retirement Age for Disability Analysis and then enter the age or date of retirement 5 To override the client s or co client s default life expectancy select Override the Disability Life Expectancy and then enter the age or year of death 6 Inthe Analyze Disability Through fields enter the last age or year you want to include in reports for the clients disability analysis The adjacent date field updates automatically m Benefit payments pay into the plan from the time the policy begins and end on the end date of the disability insurance policy 7 Under ROR on Disability Insurance Proceeds Su
13. 90 2066 Currently Disabled LJ LJ Plan Management section Assumptions category Milestones page Level 1 Plan 2 Inthe Retire At fields enter the age s or date s when the clients will retire 3 Inthe Life Expectancy fields enter the clients life expectancies Note To populate the life expectancy fields using actuarial data click the life expectancy calculator El next to the field To view the Life Expectancy Graph click Life Expectancy Graph Setting milestones Level 2 On the Milestones page you can set the retirement dates and life expectancies that will be used in the plan To set milestones follow these steps 1 Go to the Plan Management Assumptions Milestones page Milestones Carol Richard Age Date Age Date Retire At E Apr 2041 65 Feb 2041 Life Expectancy a 90 2066 a 00 2066 Currently Disabled U LJ Plan Management section Assumptions category Milestones page Level 2 Plan Detailed Tax method 2 Inthe Retire At fields enter the age s or date s when the clients will retire 3 Inthe Life Expectancy fields enter the clients life expectancies 4 To indicate that a client is already disabled select the Currently Disabled option for that client This sets the disability status percentages for incomes and expenses to 100 NaviPlan assumes that incomes and expenses entered on the Cash Flow page already take the disability int
14. NaviPlan User Manual Entering Client Data Private Corporation Details O Total Value of Shares Corporate Year End Description EJ Wayne Jan Other Province of Incorporation Province of Taxation information only 0 0 0 Northwest Territories lv Northwest Territories Dec 31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Specify the private corporation s share structure and set up automatic preferred share dividend distributions Note A plan member must own at least one common or preferred share Ownership Details Valuation Date Jul 15 2015 Common Shares Preferred Shares Redemption value per share s1 Paid Up Capital Adjusted Cost Base Paid Up Capital Adjusted Cost Base of Shares Market of Shares Total Stated Shareholder Owned Value Per Share Total Per Share Total Owned Value Per Share Total Per Share Total Wayne o so so so so so o so s0 so s0 o so so so s0 so o so s0 so s0 o so so so s0 so o so s0 so s0 0 so 50 0 0 50 0 0 50 0 0 Preferred Automatic Dividends Annual Dividend Yield of Redemption Value 0 00 Dividend Type Non Taxable v Private Corporation Details dialog box Share Structure tab 2 Inthe Valuation Date field enter the last known date at which the market value was assessed 3 Enter t
15. but the percentage can be changed 3 Enter the amount of any additional daily long term care expenses for the client or the co client For long term care insurance non registered and registered assets are available at the start of long term care and lifestyle assets are available for the estate Page 112 of 172 NaviPlan User Manual Entering Client Data Entering insurance goals for Level 2 Plans In Level 2 Plans insurance goals consist of life insurance disability insurance long term care insurance and critical illness insurance Enter the applicable insurance information as described in the following procedures m Survivor income goals if one client dies Level 2 below Survivor income goals if both clients die Level 2 on page 123 m Disability income goals Level 2 on page 127 m Long term care insurance goals Level 2 on page 135 m Critical illness insurance goals Level 2 on page 138 Survivor income goals if one client dies Level 2 You can enter insurance needs and objectives for the client and co client in the Survivor Income category Data entry is the same for both To consider insurance needs when both clients die see Survivor income goals if both clients die Level 2 on page 123 To enter data and assess needs for the client or co client follow these steps 1 Go to the Set Goals Survivor Income Client Co client Objectives page Client Objectives Co client Objectives Both Objectives
16. 0 Ymo 0 mo 4 Group LTD Robert v Group LTO xil 0 ymo 0 mo 4 Critical Illness Insurance Description Insured Policy Type Benefit Premium Actions Cl Insurance Robert LY Cash to Insured Coverage v 0 0 Ymo 2 R Long term Care Insurance Description EJ Insured Benefit Premium Actions LTC Insurance Robert v 0 mo 0 Um SH R B Insurance Coverage Report ADD LIFE INSURANCE v ADD DISABILITY INSURANCE ADD CRITICAL ILLNESS INSURANCE v ADD LTC INSURANCE Enter Financial Data section Insurance Coverage category Insurance Coverage page Level 2 Plan 2 To add a new life insurance policy click Add Life Insurance and then select a policy type Select the person insured by the policy Enter the Death Benefit Beneficiary and Monthly Premium for the listed insurance policies 3 4 To change the policy type from the Policy Type menu select another option 5 6 To enter additional details for an existing life insurance policy click for that policy The fields in the Life Insurance Details dialog box vary depending on the selected Policy Type and the plan level Page 85 of 172 NaviPlan User Manual Entering Client Data Life Insurance Details Q Details Future Values Description Policy Type Insured Beneficiary Policy Owner Life Insurance Term 10 Life v Robert v Robert v I Robert Benefit Details CSV Payable Death Cash
17. Direct Outstanding Increase Funds To Amount Amount Frequency Start Date End Date Principal Infl Add l Actions Mortgage 0 0 Monthly v lan12013 ga Ret 1st D 0 00 3 Enter Financial Data section Strategies category Debt Modification page Level 2 Plan Detailed Tax method 2 From the Choose Liability menu select the loan you want to modify 3 Click Add Debt Modification 4 Enter the Amount to add to the existing payment 5 Enter the Frequency time frame and the Inflation Rate for the strategy m If you select the Increase Principal option the value in the Amount field will be used to increase the principal of the loan This option can only be used with interest only and last period payment loans m If you do not select the Increase Principal option the value in the Amount field will be used to reduce the principal of the loan Page 79 of 172 NaviPlan User Manual Entering Client Data Entering redemptions Redemptions previously entered for accounts appear on the Redemptions page You can modify existing strategies and add new ones You can enter a redemption strategy for any account to redeem the account over a period of time or you can redeem an account in full as a lump sum To set up a redemption strategy follow these steps 1 Gotothe Enter Financial Data Strategies Redemptions page 2 Under Redemptions from the Choose Account menu select the account to which you w
18. Entering Client Data Private Corporation Details 0 Total Value of Shares Corporate Year End Description EJ Wayne Jan Other Province of Incorporation Province of Taxation information only Private Corporation 0 0 0 Northwest Territories Northwest Territories y Dec31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Account Details Valuation Asset Class Return Description EJ Market Value Cost Base Date Weightings Rates Subaccounts Actions Investment Account so 0 Jul 152015 v 0 00 Add 4 Private Corporation Details dialog box Investment Account tab showing the tabs only 2 Enter the relevant account details Note If subaccounts have been entered in the Investment Account Details dialog box the Market Value field and Cost Base field are not accessible 3 Under Return Rates click the link for the account 4 To enter subaccounts click Add under Subaccounts Note If subaccounts already exist the Add button is replaced with a link that displays the number of existing subaccounts 5 To enter further details click a Entering other private corporation assets Private corporations can own other assets such as rental properties vehicles artwork operating companies or equipment In NaviPlan these assets affect the private corporation s overall net worth but do not affect its cash flow Other
19. Entering Client Data Entering private corporations NaviPlan provides a fact finder that you can use to gather the information needed to enter a private corporation To access the fact finder go to the It is recommended that you complete this fact finder before you begin data entry Clicking the Help button on the Enter Financial Data Net Worth Private Corporations page will provide you with information about the following m Assumptions that apply to private corporations in the analysis m Taxation of private corporations m Notional accounts Refundable Dividend Tax on Hand and Capital Dividend Account a Dividend Distributions and Funding Dividend Distributions Income from the private corporation becomes part of clients personal cash flow however private corporations cannot be linked to goals To add a private corporation to a plan follow these steps 1 Go to the Enter Financial Data section Net Worth category Private Corporations page 2 Click Add Private Corporation 3 Complete the required information Note that the Corporate Year End field is for information purposes only It is not used in calculations Establishing the private corporation s share structure To define the common and preferred share structure of the private corporation and set up automatic distributions of preferred share dividends follow these steps 1 In Private Corporation Details go to the Share Structure tab Page 48 of 172
20. NaviPlan User Manual Entering Client Data Using reporting options in NaviPlan NaviPlan offers three primary report types m Standalone Reports allow you to verify the numbers after you have entered your clients financial information and goals These are intended for your use or to review information prior to meeting with your clients They feature a straight forward layout and focus on numbers m Next Gen Reports summarize a client s plan using a modern professional design Their easy to understand content and format is intended to be shared with clients Next Gen reports are available for each category in the left navigation bar m Client Reports are traditional figure focused reports that summarize a client s plan Client reports have a simple layout and focus on numbers without the contextual explanations of Next Gen reports Standalone reports and graphs After you have entered your clients financial information and goals you can verify the results by generating standalone reports and graphs The available options depend on the plan level selected To generate a standalone report or graph follow these steps 1 From the Quick Actions menu Reports menu select a report category and if applicable a subcategory and then select the report or graph you want to generate Favourite Reports Summary Net Worth Cash Flow Income Tax Goals Asset Allocation Insurance Estate Fact Finder Needs vs Abilities
21. RE DOGS ER A 147 Creating anew report 22 2 ee eee eee e eee e cece cece ee aoaaa 148 Adding custom content to a report ooo 149 Creating a new report template 2 22 02 e eee e cece ec eeceeceeceseeseeeees 149 Using a template to create a report coed cs A eden 150 Traditional clhent reports 2 soon esti asas 151 Preparing personal notes for reports 2 2 2 0 eee e cee cee cece ccc cee cece eceeceeseeeeceeseeseeeeees 154 Using the Client Report Monitor oscar thoes ord dee ene ea ede gecko tia 155 Adding notes for your own personal use _ 2 2 2 2 eee cece cece ee cece eee eceeceesecseeeeseeseeseeeees 156 Tracking success through Progress Reports 2 2 02 cee cee ce cece ee cecceceececceececeeseeseeseeeee 157 Index 159 Page v of 172 NaviPlan User Manual Entering Client Data 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 Le
22. Retirement 2 Keeps track of any pre retirement cash flow deficits 3 During retirement redeems assets at the end of the year to cover the retirement goal By default funds are used in the following order a b Any reinvestment of income from non registered assets that would be made at year end Non registered assets in the following order i Ratio of adjusted cost basis to market value as of the end of the year from the highest to lowest ii Return rate from lowest to highest iii Market value from smallest to largest iv Asset category in the order of cash accounts mutual funds and investment portfolios v Alphabetically based on the Description field Non registered annuities that are not paying out ordered by annuities with the Withdrawals as Needed income options and then by their ratio of adjusted cost basis to market value as of the end of the year with the assets containing the highest ratio used first Registered accounts and annuities that are not paying out in the following order i Ratio of basis to market value as of the end of the year from highest to lowest ii Total return rate from lowest to highest iii Alphabetically based on the Description field Note If needed you can revise the liquidation order of assets used for the retirement goal in a Level 2 Plan by clicking the Liquidation Strategies button on the Set Goals Retirement page Page 64 of 172 NaviPlan User Manua
23. Select an insurance analysis method Use this page to activate the survivor income analysis for Robert Robert s death will be simulated as ofthe end ofthe current year and the plan will be projected forward to analyze the results Objectives v If Robert dies Select an insurance analysis method O Quick Assessment O Goal and Expense Analysis Income Coverage Analysis Assumptions Lump Sum Needs Annual income Needs Survivor s Income Asset Availability Adjust Milestones Sarah Override Age Date Survivor Retirement Age la 65 May 2042 Survivor Life Expectancy pa 90 2067 ROR on Cash Flow Surpluses amp Liquidations Capital Deferred Total Interest Dividends Gains Growth Pre Retirement 6 00 1 50 1 50 1 50 1 50 Retirement 6 00 1 50 1 50 1 50 1 50 Set Goals section Survivor Income category Client Co client Objectives page Assumptions tab Level 2 Plan Average Tax method Page 113 of 172 NaviPlan User Manual Entering Client Data 2 Toassess insurance needs under Objectives select If lt client co client gt dies 3 Select a method for analyzing insurance needs Goal and Expense Analysis assesses the life insurance needed to cover the survivor s goals and expenses Goals and expenses at the plan level as well as additional expenses entered for the life insurance scenario are considered This analysis is integrated into the rest of the plan m Income Cover
24. m Long term care insurance Level 1 on page 112 Survivor income Level 1 The need for additional life insurance can be determined quickly using NaviPlan On the Survivor Income page these needs are determined using the following method m First NaviPlan totals the data in the Lump Sum Needs and Ongoing Needs sections Next the total from the Available Assets to Offset Needs section is deducted m Finally the total recommended additional insurance is displayed along with a summary of the calculation in the Results section To analyze your clients need for additional insurance follow these steps 1 Go to the Set Goals section Survivor Income Survivor Income Use this page to quickly assess your clients need for additional life insurance IfWayne dies Ifjan dies If Both Die Z Include in Analysis Lump Sum Needs C Lump Sum Needs Override Assumptions e Tm Copy Lump Sum Needs from Jan s Assessment Inflation Rate 3 00 Mortgage Principal 0 Assumed Return Rate 5 00 All Other Loans 0 Survivor s Tax Rate 30 00 Education Goals 0 Emergency Fund 0 Results o Final Expenses burial probate etc 0 Total Lump Sum Needs 0 Any Additional Needs 0 plus Total Ongoing Needs 0 Total Lump Sum Needs s0 less Total Available Assets 0 less Total Ongoing Incomes 0 Ongoing Needs a Additional Life Insurance Needed so S or of Income Annual Ongoing Needs are 0 for 0 years BE Yo
25. 2 3 until all surplus savings strategies are entered Note Ensure that the total percentage of surplus savings entered for the same year is not greater than 100 5 Ifthe clients will be spending some or all of the remaining cash flow surplus under Surplus Expenses edit the data entry line created by NaviPlan If additional surplus expense strategies are needed click Add Surplus Expense 6 Enter a description of the expense the percentage of surplus income your clients will spend the time frame for the strategy and then select the owner of the expense 7 Repeat steps 5 6 until all surplus expense strategies are entered If any surplus remains after all applicable surplus strategies have been implemented in a given year NaviPlan will assume that the surplus has been spent and eliminate any remaining surplus from cash flow 8 To view or edit how surplus funds are directed click Surplus Cash Usage In the Surplus Cash Usage dialog box select a method and then use the Move Up and Move Down buttons to reorder the list Order of Surplus Cash Usage 0 Description i Constrained RRSP Maximizer Surplus Saving Surplus Expense t MoveUp Move Down cae Surplus Cash Usage dialog box Page 83 of 172 NaviPlan User Manual Entering Client Data Chapter 6 Entering insurance coverage and tax details In the Insurance Coverage category you can enter your clients planned and existing life di
26. 2039 Liability Details dialog box for a Fixed Rate Mortgage Level 2 Plan Page 36 of 172 NaviPlan User Manual Entering Client Data Entering accounts You can manually enter investment accounts and holdings directly into NaviPlan Level 1 or Level 2 Plans Creating accounts You can enter separate accounts for each of your clients investment holdings or you can group holdings together within one account You cannot combine registered and non registered holdings within the same account Also you cannot combine holdings that have different ownerships within the same account To enter an investment account follow these steps 1 Go to the Enter Financial Data Net Worth Accounts page Registered and Non Registered Accounts ADDACCOUNT v Simple Account Asset Class Return Savings Ow Weightings _ Rates Strategies Holdings Actic Investment Portfolio v Joint v 0 ly 000 o Add 4 Mutual Fund i Cash Account Description Account Type Owner Market Value Cost Base New account Non Registered Enter Financial Data section Net Worth category Accounts page 2 Under Registered and Non Registered Accounts click Add Account NaviPlan creates a simple account without holdings OR Click Add Account and then select an account type from the menu If you select Simple Account NaviPlan creates an account without holdings If you select Investment Portfolio Mutual Fund or Cash Account NaviPlan cr
27. Amount Eligible or Est in today s field NaviPlan projects the future benefit and displays it in the Monthly Benefit in future S field along with the starting year In the Benefit Start Age or Retirement field enter the age when benefits begin or enter the word Retirement to use the default retirement age If the clients are eligible to share their CPP QPP benefits select the Share CPP QPP option Level2 gt 70 include survivor retirement or disability benefits in the CPP QPP calculations select the appropriate options To index the CPP QPP and OAS benefits to inflation under Benefits Indexed At select the Infl option and then if applicable enter a rate to add to the historical inflation rate This number can be a negative value If the client s is going to make voluntary contributions to CPP QPP select the applicable option s The client s incomes will incur that year s CPP contributions Click OK NaviPlan estimates the monthly benefits the client and co client will receive Entering OAS benefit details J 2 3 Go to the Enter Financial Data Cash Flow page Under CPP QPP amp OAS click the CPP QPP amp OAS Details link Under Monthly OAS Benefits select each client who is eligible to receive OAS benefits Then for each client Click OK Page 68 of 172 NaviPlan User Manual Entering Client Data Entering pension income NaviPlan estimates pension income using one of two pension calcul
28. Capital Accumulation and Redemption Monte Carlo 4 4 4 4 4 4 4 4 4 4 4 4 A Client Report Monitor Reports menu Level 2 Plan Detailed Tax method Depending on the report or graph type selected the Assign Settings dialog box may open The contents of this dialog box varies depending on the report selected 2 If applicable enter the settings details and then click OK Page 143 of 172 NaviPlan User Manual Entering Client Data If a Report Year field appears in the Assign Settings dialog box e g for the Cash Flow Details report and you want to report on a different year after you have generated the report in the report window click Previous Year or Next Year NaviPlan redisplays the report based on the applicable year Toredisplay the report settings click Report Settings at the bottom of the report window To hide the settings again click Report Settings Togenerate a report or graph that you can print or distribute beside the PDF or Word button click the a button and then select Automatic Portrait or Landscape The report or graph generates as a PDF or Word file Note Selecting Automatic generates a report or graph using NaviPlan s default printer orientation If you made changes to the plan and the report window is still open click Refresh to update the report To duplicate the report or graph click Duplicate NaviPlan creates a duplicate and displays it next to the original in the same
29. Equity 7 00 Mid Cap Equity 4 00 Small Cap Equity 0 00 US REITs 0 00 International Equity 5 00 Emerging Markets Equity 0 00 Long Term Bonds 8 00 Intermediate Term Bonds 19 00 Short Term Bonds 27 00 High Yield Bonds 8 00 International Bonds 8 00 Cash 10 00 Total 100 00 coca Asset Class Weightings dialog box 3 Select the Override default asset class weightings option and then enter the desired weightings The total must equal 100 4 Click OK To revert to the original asset class weightings click Customize Asset Mix and then select Revert to Defaults Using the Optimize calculation The Optimize option is only available on the Profile page To constrain the recommended asset classes but still generate an optimal recommended asset mix follow these steps Page 23 of 172 1 If applicable scroll to the bottom of the Profile page 2 Click Customize Asset Mix and then select Optimize NaviPlan User Manual Entering Client Data Optimize O 16 14 Similar Risk to Current 2 k Similar Return to Current Conservative 10 A Moderate Conservative s V Moderate El me oh Moderate Aggressive 3 m Aggressive 6 5 4 e 2 0 0 4 8 12 16 20 24 28 32 Standard Devistion Risk Portfolio Statistics Suggested Asset Mix _ Override Standard Deviation Class Similar Similar Class Name Percentage Class Name Percentage Return Risk A i s Dini N BS Kad Large Cap Value Eq
30. Goal and Expense Analysis method if both clients die 2 22 22 eee eee eee eee ee cece ceecceeceees 123 Income Coverage Analysis method if both clients die _ 2 2 2 2 c cece cece cece cee ceeceees 124 Page iv of 172 NaviPlan User Manual Entering Client Data Assigning asset availability if both clients die 22 22 02 cece cece eee eee cee cececseeseeees 127 Disability income g als Level 2 srren td id dd bd 127 Disability Income Goal and Expense Analysis method 2 22 2 02 ee cee cece ecceceeceeseees 129 Disability Income Income Coverage Analysis method 0 2022 c cece cece ee cecceceeceeees 132 Indicating when accounts are to be made available 0 22 22 2 cece cece eee c ccc eeceeceees 133 Long term care insurance goals Level 2 0 2 2 l occ cece eee cece cece cece ceecceeccecseeeteeceeeeees 135 Critical illness insurance goals Level 2 022 22 e occ eee cee eee cee cece ceecceeceeeeeeeteeceeeceeees 138 Chapter 9 Examining resullts 2 2c gt scesexntenne se nuance neregsiaeeees asa sie 139 Using the Planning Assistant iii ed a tee ec esis ees A dd vidoe tees 140 Opening the Planning Assistant ta tes ead SE ee Se aa E eyed 140 Viewing and or printing the Planning Assistant reports 02 cece aana ahaaa aana oonan naan 141 Using reporting options in NaviPlaM s R dianas 143 Standalone reportsiand erdphs 2220 eo ee ee he ee da tad at oe 143
31. Inthe Start Value field enter an amount that corresponds with the Start Year d Inthe Base Rate field enter the rate at which the selected column values will increase annually e If the base rate is expected to increase in the Increase Rate By field enter the rate at which to index the future value f In the Period years field enter how often the future values change g Click Fill The future values that you specified are modified automatically Page 88 of 172 NaviPlan User Manual Entering Client Data Entering disability insurance policies To enter your clients existing disability insurance policies follow these steps 1 Gotothe Enter Financial Data Insurance Coverage page 2 Toadd a disability insurance policy click Add Disability Insurance and then select a policy type 3 Select the person insured by the policy 4 To change the policy type from the Policy Type menu select another option 5 If applicable enter the monthly benefit amount and premium of the listed insurance policies 6 To enter additional details for an existing disability insurance policy click 2 for that policy Disability Insurance Details o Use this dialog box to enter details for existing disability insurance policies Description EJ Policy Type Insured Policy Owner Effective Date Company Policy Number Group STD Group STD v Robert x Rober x Dec 31 2012 Benefit Details Benefit Amount of Salary Fl
32. Needs section enter an ongoing need and a number of years for the first row This comprises the first period 2 Click Add Ongoing Need 3 Enter an annual ongoing need and a number of years for the newly created row This comprises the second period and immediately follows the previous period 4 Repeat step 3 until you are satisfied 5 Enter all assets available to cover needs in the selected survivorship situation These assets are divided into two categories m Realizable Assets This field represents the value of assets that are easily converted to cash in the event of a death m Existing Life Insurance Policies This field represents the value of existing life insurance policies already entered in the assessment The value of these assets is calculated by NaviPlan to modify these values select Available Asset Override and enter new data 6 Review the information NaviPlan is using for this analysis in the Assumptions container and make any changes you wish 7 NaviPlan now calculates your clients need for additional life insurance and displays its recommendations in the Results container Page 110 of 172 NaviPlan User Manual Entering Client Data Disability insurance Level 1 1 Gotothe Set Goals Disability Income page Disability Income Selectthe appropriate check boxes below to activate the insurance analysis Enter details for the applicable insurance objectives Disability Insurance Analysis to Include
33. User Manual Entering Client Data To generate a client report follow these steps 1 Go to the Results Client Report page Client Report Use this page to generate client reports Alternatively to see the status of or print generated reports go to the Workflow section Status category Status page Include Alternatives In Reports Reports Report Name Template Acti Status Submission Time Financial Needs Assessment Current Template SELECT DOCUMENT SECTION Asset Allocation Y Default Template SELECT DOCUMENT SECTIONS Financial Needs Summary Default Template Retirement Distribution Summary Default Template Financial Needs Analysis Y Current Template To view the list of all the generated reports go to the Client Report Monitor Results section Client Reports category Client Report page 2 To include alternative plans in the client reports click Include Alternatives In Reports and then select the alternative plans to include Note The current and recommended plans are always included Include Alternatives In Reports a Select the alternative scenarios to be included in the reports from the lists below Scenario Scenario Name Current Current Plan Recommended Proposed Alternative 1 Alternative A v Alternative B l ly Include Alternatives In Reports dialog box 3 If applicable select a template to use for the repor
34. a cash flow surplus of 10 000 You also expect the survivor to spend 25 of this surplus on miscellaneous costs and invest the remaining amount For this example you would enter 25 in the Percent surplus spent field NaviPlan automatically saves the remaining 75 into a non registered account when survivorship occurs 6 Under Analysis Surplus select or clear the Assume surplus is spent option as required m When the option is selected NaviPlan projects the cash flow that would have occurred in pre retirement if neither client died Any pre retirement surpluses resulting from that projection become additional pre retirement survivor expenses in the years they are projected to occur The Percentage of lifestyle expenses to cover value applies to this expense just like any other regular expense 7 Under Additional Annual Expenses click Add Additional Annual Expense to enter any new expenses that will apply during survivorship 8 Once all ongoing expenses are entered go to the Additional Annual Income tab 9 To add an annual income that may apply during survivorship under Additional Annual Income click Add Annual Income and then enter the income details Assumptions OngoingExpenses Additional Annual Income Lump Sum Needs Asset Availability Use this page to enter additional annual income that applies in survivorship Additional Annual Income ADD ANNUAL IN Annual Description Income Type Amount Start Date End Date Infl Add
35. a sample template It contains all of the Next Gen Reports released at this time Echantillon de mod le Ceci est un chantillon de mod le Il contient tous les rapports de la prochaine g n ration disponibles Getting Started Echantillon de mod le 1 Ceci est un chantillon de mod le Il contient tous les rapports de la prochaine g n ration disponibles iS dinna jusqu au pr sent jusqu au pr sent 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 A 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 Table of Contents This report generates a table of contents showing each report page you have included in your report or template Cover Page This is a general cover page It includes the client s name s advisor s name s as well as the date of report creation Remove ADD Tile View Financial Snapshot This report displays a high level overview of the current plan on a single page ADD
36. assets cannot produce income or expenses nor can they be bought or sold To enter other private corporation assets follow these steps 1 Go to the Other Assets tab Page 51 of 172 NaviPlan User Manual Entering Client Data Private Corporation Details 0 Total Value of Shares Corporate Year End Description Wayne Jan Other Province of Incorporation Province of Taxation information only Private Corporation 0 0 0 Northwest Territories se Northwest Territories Ly Dec 31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Add any other assets that the private corporation owns such as real estate commercial rental properties and equipment Other Assets ADD OTHER ASSET Click the Add Other Asset button to create a new row Private Corporation Details dialog box Other Assests tab 2 Click Add Other Asset 3 In the new data entry row that appears enter the asset s description market value cost base valuation date deferred growth and standard deviation Adding private corporation life insurance policies Life insurance policies for which the private corporation pays premiums can be entered The private corporation is considered to be the beneficiary payer and owner of these policies To enter life insurance policies paid for by the private corporation follow these steps 1 Go to the Life Insurance tab Private Corporat
37. details for the listed expenses If necessary click Add Retirement Expense to create an additional expense that will occur during retirement Expenses can be entered for the entire retirement period or they can be entered in a staged format The second option is best used when the clients needs change during the retirement period For example a client may expect to need 65 000 annually from age 65 to age 75 but then expect to reduce or increase spending from age 76 to 80 or the clients may expect to have one time or time limited additional expenses that are over and above the amounts specified on an annual basis In joint plans NaviPlan makes the following assumptions for retirement expenses when the keyword retirement is entered in the Start Age field and the keyword death is entered in the End Age field If the retirement expense is Singly owned The expense The expense ends on begins on December 31 of the year the owner dies unless the Tfr to Survivor option is selected Retirement expenses previously entered on the Enter Financial Data Cash Flow page that continue into retirement appear on the Retirement page Changes made on either page automatically appear on the other page Page 96 of 172 4 NaviPlan User Manual Entering Client Data To indicate the retirement expense is fixed cannot be eliminated select the Fixed Exp option If the option is not selected NaviPlan assumes the expense is di
38. during retirement and define the tax rate for dependants In a Level 2 Plan you can also specify an income bracket during the Year of Death time period This rate is universally applied at the death of both the client and co client To enter income tax rate assumptions in a plan follow these steps 1 Go to the Plan Management Assumptions Income Tax page Tax Rates Robert Tax Bracket Pre Retirement 50 001 60 000 Average 24 30 Marginal 34 75 Retirement 50 001 60 000 24 30 34 75 Year of Death 50 001 60 000 24 30 34 75 Sarah Tax Bracket Pre Retirement 50 001 60 000 v Average Marginal 24 30 34 75 Retirement 50 001 60 000 24 30 34 75 Year of Death 50 001 60 000 24 30 34 75 Dependants Tax Bracket Marginal Tax Rate 0 10 000 Average 1 21 25 80 TAX RATE SCHEDULE Plan Management section Assumptions category Income Tax page Level 2 Plan Average Tax method Note The above figure shows how the Income Tax page appears for clients with the Married tax status The page appears differently for clients with other tax statuses 2 Under Tax Rates set income tax rates for the Pre Retirementand Retirement time periods for clients and their dependants m NaviPlan automatically calculates tax rates for the
39. in determining the impact that the client s goals and associated savings plans wil have on their cash flow You should be aware that the system is not designed to perform detailed cash flow analysis Please refer to the Cash Flow report for more details The Net Worth report contains information on the accumulation and or depletion of assets over time It displays both assets and liabilties and the net value or difference at the end of the current year The Action Plan report contains a summary of the Goals specified in the plan the current savings allocated to each goal and any additional savings that are required to achieve each goal as determined by the system based on the assumptions in the plan Planning Assistant dialog box 2 From the Settings menu select the plan type you want to analyze The Current option is based on the plan in which you are working The Recommended option represents the Recommended Plan scenario which takes into account additional assumptions and strategies including those selected in the What Are My Options dialog boxes found throughout NaviPlan 3 Click a tab to view detailed information Page 140 of 172 NaviPlan User Manual Entering Client Data Viewing and or printing the Planning Assistant reports The Reports tab and the Overview tab provide a synopsis of the other Planning Assistant reports To view or print the Planning Assistant reports follow these steps 1 Open the Planning Assista
40. incomes CPP QPP and OAS benefits 67 pensions 69 regular or lump sum entering 65 retirement 97 NaviPlan User Manual Entering Client Data Page 164 of 172 NaviPlan User Manual Entering Client Data inflation rate base 8 base rate changing 8 Historical Rate graph 8 insurance coverage 84 86 insurance goals disability Level 1 111 disability Level 2 128 disability income Level 2 127 Level 1 Plan 109 Level 2 Plan 113 long term care Level 1 112 long term care needs 135 survivor income Level 1 109 survivor income Level 2 113 insurance policies disability 89 life insurance 85 long term care 90 insurance reports 92 145 investor profiles overriding 99 selecting 30 setting up 27 L liabilities credit cards 35 fixed rate mortgage 36 Page 165 of 172 fixed mortages 35 loans 35 liability details entering 35 36 LIF account setup 42 life expectancy age 11 graph 11 milestones Level 1 10 life insurance insurance goals Level 1 109 insurance goals Level 2 113 survivor income 123 life insurance goals Level 1 109 life insurance policies entering 85 future values and premiums Level 2 87 Life Insurance Quick Assessment 114 lifestyle assets entering 33 return rates 34 liquidation order defining 97 LIRA account setup 42 long term care insurance goals Level 1 109 insurance goals Level 2 113 NaviPlan User Manual Entering Client Data Page 166 of 172 long term care insu
41. is only available if major purchase goals exist in the plan 10 Under Additional Lump Sum Needs if any other lump sum needs are expected click Add Lump Sum Need and then enter the details of the need in the fields that appear 11 Goto the Survivor s Income tab Assumptions Lump Sum Needs Annual Income Needs Survivor s Income Asset Availability Enter any incomes the survivor will receive after the partner dies Defined benefit and defined contribution pensions entered in the plan that include survivor benefits will flow through to this page Survivor s Income Reset JOR INCOME Description Member Income Type Amount Frequency Start Date End Date Infl Add l Actions Salary Sarah Salary v 0 J Annual v jan1 2014 m Ret Owner f a 0 00 I xR Set Goals section Survivor Income category Client Co client Objectives page Survivor s Income tab Level 2 Plan Income Coverage Analysis method selected 12 To enter a new income click Add Survivor Income and then enter all appropriate data 13 To indicate when accounts are to be made available during the survivorship period complete the procedure see Assigning asset availability if one client dies on the next page Note To delete any changes and revert the survivor incomes that were created on the Enter Financial Data section Cash Flow click Reset Page 119 of 172 NaviPlan User Manual Entering Client Data Assigning asset availabi
42. on this page originate from the Plan Management section Assumptions category General page 6 Go to the LTC Expenses tab to enter daily long term care expenses Existing expenses that continue into the LTC period appear under Annual Expenses Any insurance premiums or loan payments payable during long term care are included on this tab and cannot be edited Page 135 of 172 NaviPlan User Manual Entering Client Data Assumptions LTC Expenses Income Adjustments DuringLTC Asset Availability Use this page to view currently defined annual expenses and add any additional expenses applicable to a long term care situation Annual Expenses Long term Care Survivorship Percentage of lifestyle and medical expenses to cover during 100 85 Additional Long term Care Expenses ADD LTC EXPENSE Click the Add LTC Expense button to create a new row Set Goals section Long term Care category Client Objectives page LTC Expenses tab Level 2 Plan 7 Under Annual Expenses enter the percentage of lifestyle and medical expenses that will continue while the client is in long term care and during survivorship The percentage entered will be used as the default 8 To change the default percentage for specific expenses clear the Use Defaults option and then enter the percentage of that expense that insurance needs to cover 9 If your clients anticipate additional long term care expenses under Additional Long t
43. rates on the Plan Management Assumptions General page You can click Tax Rate Schedule to obtain the rates for each province m NaviPlan deducts amounts such as registered contributions or tax deductible interest from the clients taxable income from other sources and then applies the average tax rate or bracketed federal tax rate if using the Detailed Tax method to calculate income tax liability generated by sources other than taxable portfolios Note Deductible amounts are calculated by NaviPlan based on the information entered in the plan You do not have to specifically enter them anywhere m NaviPlan adds all the clients expenses for the year including the following o Expenses entered on the Enter Financial Data Cash Flow page o Expenses associated with goals entered in the Set Goals section o Loan payments calculated by NaviPlan based on information entered in the Enter Financial Data Net Worth category o Investment expenses entered under Annual Account Fees on the Plan Management Assumptions General page o Savings strategies entered on the Account Details dialog box Savings Strategy tab o Life disability long term care and critical illness insurance premiums calculated by NaviPlan based on information entered in the Enter Financial Data Insurance Coverage category Note Expenses associated with goals are funded by dedicated assets while all other expenses are paid from cash fl
44. s income needs 3 Under Lifestyle Assets select one of the following options for each lifestyle asset m Liquidate Immediately if the asset will be made available to the survivor when the client or co client dies m Liquidate At Retirement if the asset will be sold when the surviving client reaches retirement m Not Available if the asset will not be sold until both the client and co client die Note If you select Liquidate Immediately or Liquidate At Retirement the entire lifestyle asset is liquidated and the proceeds remaining at the end of the year are reinvested at the rate set on the Set Goals Survivor Income Client Co client Objectives page Assumptions tab Page 120 of 172 NaviPlan User Manual Entering Client Data The need for additional life insurance can be determined quickly using NaviPlan On the page these needs are determined using the following method m First NaviPlan totals the data in the Lump Sum Needs and Ongoing Needs sections Next the total from the Available Assets to Offset Needs section is deducted a Finally the total recommended additional insurance is displayed along with a summary of the calculation in the Results section To analyze your clients need for additional insurance follow these steps 1 Go to the page FRobert dies IfSarah dies If Both Die Y Include in Analysis Lump Sum Needs O Lump Sum Needs Override fm Copy Lump Sum Needs from Sarah s Assessm
45. selected on the Set Goals Survivor Income Both Objectives page See Survivor income goals if both clients die Level 2 on the previous page Page 124 of 172 NaviPlan User Manual Entering Client Data To use the Income Coverage Analysis method follow these steps 1 Gotothe Ongoing Income Needs tab Assumptions Lump Sum Needs Ongoing Income Needs Asset Availability Current Income Level Calculator Household Pre tax Income to cover Amount 0 x ADD TO SUPPORT FOR DEPENDANTS Support for Dependants ADD SUPPORT FOR DEPENDANT Click the Add Support for Dependant button to create a new row Education Goals Annual Description Name Amount University Education Jeremy 0 Set Goals section Survivor Income category Both Objectives page Ongoing Income Needs tab Level 2 Plan Income Coverage Analysis method selected 2 To calculate a percentage of current income needed during survivorship under Current Income Level Calculator enter a percentage in the to cover field and then click Add to Support for Dependants 3 To enter annual child support needed for each child that will be provided in the event of death click Add Support for Dependant and then enter the support details This section does not appear if dependants have not been entered 4 If education expenses exist in the plan under Education Expenses enter the percentage of education expenses to be covered in the event of death 5 Go
46. that changes with inflation on an annual basis select the Infl option If the amount is to change with inflation plus or minus a certain percentage select the Infl option and then enter the rate above or below inflation For example if inflation is 3 and the savings should be increased by 5 enter 2 in the Add field 5 To view or edit how surplus funds are directed click Surplus Cash Usage In the Surplus Cash Usage dialog box select a method and then use the Move Up and Move Down buttons to reorder the list Page 78 of 172 NaviPlan User Manual Entering Client Data Modifying a loan NaviPlan calculates the regular loan payments required for liabilities You can modify the principal of an existing loan either by making additional principal payments over and above the calculated regular loan payments or if the loan is either an interest only or last period payment type by adding to the principal Debt modification strategies can be entered in the following locations Enter Financial Data Strategies Debt Modification page m Liability Details dialog box Debt Modification tab for an individual liability To modify the principal of a loan follow these steps 1 Go to the Enter Financial Data Strategies Debt Modification page OR Go to the Enter Financial Data Net Worth Assets Liabilities page click 2 fora liability and then go to the Debt Modification tab Debt Modification Mortgage
47. to the Lump Sum Needs tab Assumptions Lump Sum Needs OngoingIncome Needs Asset Availability Select outstanding liabilities to be paid in full upon death If items listed under Pay Off Outstanding Liabilities are not selected itis assumed that additional insurance is not required because the liabilities are insured separately for life Under Additional Lump Sum Needs enter items such as funeral expenses Pay Off Outstanding Liabilities Outstanding Description Principal Additional Lump Sum Needs Click the Add Lump Sum Need button to create a new row Set Goals section Survivor Income category Both Objectives page Lump Sum Needs tab Level 2 Plan Goal and Expense Analysis method selected Page 125 of 172 NaviPlan User Manual Entering Client Data 6 Under Pay Off Outstanding Liabilities select any existing loans that will be paid off by insurance proceeds For each loan that is not selected NaviPlan assumes that the payments continue and will be included as part of the survivor s cash flow Note This option is only available if liabilities exist in the plan and if on the Enter Financial Data section Net Worth category Assets Liabilities page Liability dialog box the Payoff Options at Death selection is Transfer to survivor or Payoff at first death from estate This option is only available if liabilities exist in the plan 7 Under Additional Lump Sum Needs enter one time expenses that wil
48. view asset allocation assumptions for the plan you must complete the questionnaire Plan Management Asset Allocation Questionnaire page To view asset allocation assumptions for the plan follow these steps 1 Go to the Plan Management Asset Allocation Profile page 2 On the Profile page click Settings Page 20 of 172 NaviPlan User Manual Entering Client Data Asset Allocation Settings O Asset Classes Investor Profiles Portfolios These are the asset classes and their return rates and standard deviation defined in the application They are not editable Asset Classes Capital Deferred Standard Description Interest Dividends Gains Growth Total Deviation Canadian Large Cap Equity 0 000 2 720 3 630 2 320 8 670 18 620 Canadian Small Cap Equity 0 000 2 090 5 940 3 200 11 230 22 760 US Equity 0 000 2 060 4 540 1 850 8 450 17 040 International Equity 0 000 4 270 1 830 9 260 19 740 Emerging Markets Equity 0 000 2 930 8 980 2 250 14 160 27 190 Canadian Bonds 3 180 0 000 0 000 0 000 3 180 7 480 Global Bonds 3 200 0 000 0 000 0 000 3 200 9 290 Canadian Cash Equivalents 1 440 0 000 0 000 0 000 1 440 2 120 Asset Allocation Settings dialog box Asset Classes tab Determining the clients investor profile When using NaviPlan with predefined asset allocation a questionnaire is used to determine your clients investor profile NaviPlan sugges
49. window To generate a report or graph from within an open stand alone report or graph window click Report Page 144 of 172 Report categories Favourite Reports NaviPlan User Manual Entering Client Data Examples of the tasks you can perform Keep reports that you use frequently readily available View an action plan for the clients investments redemptions insurance and debt View a synopsis of the data entered into the plan Summar y View the results of the Planning Assistant report Compare differences between the current plan and the recommended plan View account and holding details Net Worth Compare summary or detailed changes in net worth over time View composition and activity details for the clients assets and liabilities Monitor changes in cash flow activity Examine current and projected cash flow ona single or multi year basis Cash Flow View the effects of taxes and capital loss carryovers Monitor changes in projected surpluses and deficits Monitor income tax changes and capital loss carryovers Income Tax If you are using the Detailed Tax method additional income tax reports are available View details of goals and goal savings Goals Compare goal needs with current and projected goal funding View summaries for each goal Compare current and suggested asset mixes asset class weightings and the efficient frontier Asset Allocation i F F If you are using predefined asset allocation e
50. 0 100 00 100 00 100 00 0 00 100 00 Individual Constraints dialog box b Enter the minimum and maximum holding constraints for each asset class c To exclude an asset class clear the associated option d To return all overridden asset class weightings to the initial recommended asset class weightings click Revert to Defaults e If necessary enter any additional comments or details f Click OK to close the Individual Constraints dialog box NaviPlan applies the constraints to the plan and the Efficient Frontier graph updates display the optimization Click OK to close the Optimize dialog box The Suggested Asset Mix graph on the Profile page updates to Page 25 of 172 NaviPlan User Manual Entering Client Data Overview of User Defined Asset Allocation There are two aspects to user defined asset allocation in NaviPlan 1 NaviPlan uses the return rates assigned to asset classes and the asset class weightings assigned to individual assets to calculate return rates for individual assets 2 NaviPlan compares the mix of asset classes in your clients current portfolios the assets your clients actually own with hypothetical asset mixes suited to your clients investor profiles The comparison is designed to demonstrate how the current portfolios can be changed to make it more likely that the clients will achieve their financial goals Throughout NaviPlan these hypothetic
51. 0 00 Aggregate Bonds 0 00 Total am Weightings 50 00 0 00 100 00 Under Portfolio Criteria select the investor profile you want to change and then under Portfolio enter To revert to the default asset mix values entered on the Asset Allocation Settings dialog box Portfolios tab accessed from the User Preferences menu Asset Allocation Settings click Reset Asset Allocation If no default values exist clicking this button deletes what you have entered without replacing it Page 29 of 172 NaviPlan User Manual Entering Client Data Determining the clients investor profile with user defined asset allocation The purpose of selecting an investor profile is to identify the model portfolio suggested asset mix that is most appropriate for your clients To select a proposed portfolio follow these steps 1 Go to the Plan Management section Asset Allocation category Profile page Profile SETTINGS Investor Profile Select an investor profile Conservative x Suggested Asset Mix aCash Bonds Summary Expected rate ofreturn 9 75 Expected standard deviation 39 00 Proposed investor profile Conservative Plan Management section Asset Allocation category Profile page 2 A default investor profile may appear To change the displayed investor profile select another profile from the menu If you select Current Rebalanced or Current
52. 22 2 cece cece ccc cece eeceeees 53 Establishing withdrawals from a private corporation 2 02 2 c eee cece eee cece eceececceceeeeeseee 53 Defining private corporations share options in the event of death 0 0 eee cece cece ccc eececceceees 54 Defining asset class weightings 2 22 02 2 cece cece cece cece c cece rre 56 Searching the asset classifier database 0 2 2 2 lle cee cee cee eee cee cee cece cee ceeceeeees 56 Editing asset class weightings Level 2 2 02 02 2 o oo cleo cece ee cece cece cece cee ceeeceecseeceeeceeeseeetees 57 Generating the Asset Liabilities report 0 22 02 ooo cece ccc cece cence ccecccccuccccuecccccucccccancccncees 58 Funding Balsas 59 Overriding previously accrued investment income 0 2 2 22 e cee eee eee coccion 60 Page 32 of 172 NaviPlan User Manual Entering Client Data Entering lifestyle assets Lifestyle assets are purchased for the owners personal use and enjoyment and not for the purpose of funding goals or producing income Examples include a house cottage car or boat To enter lifestyle assets follow these steps 1 Go to the Enter Financial Data section Net Worth category Assets Liabilities page Assets Liabilities Accounts Annuities Private Corporations Asset Class Weightings Enter lifestyle asset and liability details Lifestyle Assets ADD LIFESTYLE ASSET v Liabilities ADD LIABILITY v Market Description EJ Balanc
53. F will occur 5 Touse a younger age under General Information select the Use younger partner s age for minimums option 6 If applicable under Annuity Information select Convert to Annuity and then enter an interest rate 7 To change the age at which to convert the annuity enter a new age in the At Age field Setting up RPPs LIFs and LIRAs To set up a RPP LIF or LIRA follow these steps 1 Gotothe Enter Financial Data section Net Worth category Accounts page 2 Under Account List for the appropriate account click the button or click anywhere on that row 3 Go to the Registered Account Setup tab Page 42 of 172 NaviPlan User Manual Entering Client Data Savings Strategy Return Rates Registered Account Setup Account Fee Setup Conversion Convert to LIF LRIF Conversion Preference 9 Automatic Conversion will occur at first occurrence of a deficit during retirement no earlier than age 55 At Retirement AtAge 71 Payout Options Elect payout in first year Use younger partner s age for minimums LJ End of Year Market Value as of 2012 _ 0 Use maximum payout amount Rate for determining maximum payout 6 00 Governing legislative area lt Owner s Province gt v a Minimum Payment Frequency Monthly L Make Annual Payments In January Enter Financial Data section Net Worth category Accounts page showing Registered Account Setup tab fo
54. Flow page click for that expense Expense Details dialog box m lf you are entering an expense owned by one client and you expect the expense to continue for the survivor after the client dies select the Transfer to Survivor option m f entering a fixed expense select the Fixed Expense option Fixed expenses are included in the calculation of emergency fund goals and in determining scenario goal coverage If you clear the option the expense is considered to be discretionary and is not included in the calculation Defining an emergency fund goal on page 105 for more information Note Fixed expenses are expenses that cannot be readily changed or eliminated by the clients such as utility bills and rent payments Expenses that flow into retirement years appear on the Set Goals Retirement page These retirement expenses also appear on the Cash Flow page under Expenses m From the Expense Details dialog box you can add another expense by clicking Add Expense and then selecting New Expense or Copy of Current If you select Copy of Current NaviPlan creates a copy of the existing expense You can view or edit other expenses by clicking Previous Entry or Next Entry Page 74 of 172 NaviPlan User Manual Entering Client Data Entering surplus expenses While the clients plan may be projected to have an end of year cash surplus this surplus often does not materialize because the clients have underestimated their regular expenses or in
55. GUARANTEED WITHDRA Asset Class Return Savings Description EJ Account Type Owner Market Value Cost Base Weightings Rates Strategies Subaccounts Actions Gwe Non Registered v Joint lv 0 Unclassified 5 00 0 1 2 R Enter Financial Data section Net Worth category Annuities page 2 Under Guaranteed Withdrawal Benefit click Add Guaranteed Withdrawal Benefit 3 Enter a unique Description then select an Account Type and Owner 4 Click 4 to open the Guaranteed Withdrawal Benefit Details dialog box 5 Select the Annuitant When Joint is selected from the Annuitant menu and one client dies the surviving client receives the payouts until their death 6 Enter the annual Guarantee Fee 7 To establish the Market Value and Cost Basis go to the Subaccounts tab and enter the value and base of all associated holdings Subaccounts Payout Options Savings Strategy Return Rates Holdings Classify Reset Symbols Market Valuation Asset Class Description EJ Symbol Value Hold S Cost Base Date Weightings Actions New Subaccount Ji 100 000 0 0 Oct 28 2014 Enter Financial Data section Net Worth category Annuities page Guaranteed Withdrawal Benefit Details Subaccounts tab Page 45 of 172 NaviPlan User Manual Entering Client Data Entering payout options for guaranteed withdrawal benefits To specify payout options for guaranteed withdrawal benefits follow these steps
56. InADVICENT NaviPlan User Manual Level 1 8 Level 2 Plans Entering Client Data Volume V of VI NaviPlan User s Guide Canada Version 15 1 Copyright and Trade mark Copyright 2013 2015 Advicent LP and its affiliated companies Advicent All rights reserved Advicent and NaviPlan are trade marks 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 trade mark of Microsoft Corporation Adobe and Acrobat are trade marks of Adobe Systems Inc All other product names are the sole properties of their respective owners Software Licence This publication is intended for use by authorized licencees of Advicent s proprietary NaviPlan software described herein This publication does not grant any licence or right to use of the software and use of the software or this publication is prohibited by anyone who is not an authorized licencee All licences rights and restrictions on use of the software are governed by a separate licence 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 licenced to authorized licencees on the understanding that Advicent is not engaged in rendering legal accounting or other pr
57. Not Rebalanced the Suggested Asset Mix graph displays a proportional breakdown of all the clients assets in the current plan based on whether or not the portfolio is regularly rebalanced to maintain their allocation Page 30 of 172 NaviPlan User Manual Entering Client Data Chapter 3 Entering net worth information This chapter explains how to enter your clients net worth information In a Level 1 and a Level 2 Plan summary information can be entered for lifestyle assets liabilities along with simple accounts detailed accounts with holdings In this chapter Entering lifestyle assets 0 000000000 aaa aaao aoao aooaa aaa ADDL DDL PLPL DLLD DDL Laa 33 Entering liabilities 000 ias 35 Entering fixed rate mortgages nn 36 Entering accounts a io cda ps a222 222 37 Creating ACCOUNTS cto ds st a a A AA E eee sakes 37 Entering holdings short trab ii tacos 38 Entering a hold on a holding within an account o cccccccccccccccccccccccccncccncccnccnccnnc conc 39 Entering savings strategies for accounts cnn 39 Setting up a redemption strategy for an account Level 2 Detailed Tax 2 0222 20222 202 2222 40 Overriding calculated return rates for accounts 2 0 2 0 222 c eee eee eee eee eee cee cece eee ceeeeeceeeee 40 Setting the account fee for an account _ 222 2222 o eee cece eee LDPD LDL DLLD aaa 41 Converting accounts to retirement income funds _ 2 202 2222 2 ee eee cece ce eee e cece aoan nan
58. Note For all major purchase objective types other than the Expense type the new asset is added to net worth and appears in the Enter Financial Data Net Worth category in the year the purchase occurs For example a new vehicle or second residence can increase net worth whereas a wedding or holiday cannot 3 Enter a unique description for the goal and then complete the required fields 4 Specify whether the cost will be indexed to meet inflation Major Purchase Objectives Target Projected Description Type Member Date Amount Infl Add l Amount Actions Expense Expense Joint LY Sep 12015 m 45 000 v 0 00 45 000 x Goal Funding Select Plan Data for Reports Set Goals section Major Purchase category Major Purchase page Level 2 Plan 5 To change the clients investor profile for a specific major purchase goal under Investment Profile selectthe Override option for the major purchase goal and then select another investment profile Note The Asset Allocation module must be selected on the Plan Management Modules page 6 If you want to override the proposed portfolio for the major purchase goal and the answers on the Plan Management Asset Allocation Questionnaire page do not accurately reflect the goal or you are not using predefined asset allocation Overriding the proposed investor profile for a goal Level 2 Plans on page 99 7 To allocate an account to the major purchase goal or
59. Override Client Co Client Deductible Account Fees Paid from Cash Flow Paid from Account Non Deductible Account Fees Previously Incurred Investment Activity dialog box Level 2 Plan Brenda 3 Under Previously Accrued Investment Income select the Override option and then edit the values as 4 Registered Proceeds field Note The estimate of investment income before the valuation date applies only to non registered accounts To include registered proceeds that have been received by the clients before the Plan Analysis Date and are subject to tax select the Include income above in cash flow option and then enter an amount in the Page 60 of 172 NaviPlan User Manual Entering Client Data Chapter 4 Entering cash flow information This chapter explains how to enter your clients cash flow You can enter incomes government pensions defined benefit pensions regular expenses and surplus expenses In this chapter Cash flow calculations 2 2 2 22 ooo eee eee cece anaana eee eees 62 Clients cash inflows forthe year eiii dista oo 62 Clients scheduled cash outflows for the year 2 22 22 eee cee eee cee cee cece cece aaao aaoo nanana 62 Clients current year cash flow surplus or deficit 2 220222 cece ce cece eee eee c cee ceceeseeceee 63 Manages cash flow surpluses and deficits 00 200 002 cee cece ce cee eee cee cee cee e ce eeceee cece 64 Entering regular or lump sum incom
60. Payment Type and Payment Frequency as well as the asset to which the mortgage is linked 8 If applicable select the Interest is Tax Deductible option 9 Enter the Balance As of Date Loan Date and the Original Principal amount 10 If applicable select the Cover any pre retirement deficits created by these liability payments option 11 Under Calculation Options select a Field to Calculate a Amortization Enter the Balance and the Payment NaviPlan determines the number of Years and Months remaining b Payment Enter the Balance and the number of Years and Months remaining NaviPlan determines the Payment amount c Balance Enter the Payment amount and the number of Years and Months remaining NaviPlan determines the remaining Balance 12 When you are satisfied with these options click OK Liability Details O Liability Mortgage Interest Compound Description EJ Owner Type Type Rate Frequency Fixed Mortgage Joint y Mortgage iv Fixed x 5 000 Semi annual v Payment Interest is Payment Type Frequency Link to Asset Tax Deductible Principal and Interest v Monthly v None ly Balance Original AsofDate LoanDate Renegotiate Principal Nov 13 2014 Dec 31 2013 Refinanced s0 Z Cover any pre retirement deficits created by these liability payments Calculation Options Remaining Amortization Field to Calculate Balance Years Months Payment so 0 00 Amortization v 25 End Date 0 Nov 12
61. Plan User Manual Entering Client Data Survivor income goals if both clients die Level 2 To analyze life insurance needs in the event that both clients die follow these steps 1 Gotothe Set Goals Survivor Income Both Objectives page Assumptions Lump Sum Needs Ongoing Income Needs Asset Availability ROR on Cash Flow Surpluses Liquidations Capital Deferred Total Interest Dividends Gains Growth Pre Retirement 6 00 1 50 1 50 1 50 1 50 Retirement 6 00 1 50 1 50 1 50 1 50 Tax Rates Tax Bracket Average Marginal Tax Rate 50 001 60 000 x 2430 34 75 Set Goals section Survivor Income category Both Objectives page Assumptions tab Level 2 Plan Detailed Tax method and Goal and Expense Analysis method selected 2 Under Objectives select If lt client gt and lt co client gt die 3 Select an insurance analysis method Goal and Expense Analysis assesses the life insurance needed to cover the survivor s goals and expenses Goals and expenses at the plan level as well as additional expenses entered for the life insurance scenario are considered This analysis is integrated into the rest of the plan m Income Coverage Analysis assesses the life insurance needed to replace income lost from the death of the client or co client This method is independent of the rest of the plan 4 On the Assumptions tab under Rate of Return on Life Insurance
62. Proceeds Surpluses and Liquidations enter return rates 5 Under Tax Rates view the tax rates to be used for any dependant owned assets Edit if necessary 6 Complete one of the following procedures Goal and Expense Analysis method if both clients die below m Income Coverage Analysis method if both clients die on the next page Goal and Expense Analysis method if both clients die The Goal and Expense Analysis method must be selected on the Set Goals Survivor Income Both Objectives page Survivor income goals if both clients die Level 2 above for more information Page 123 of 172 NaviPlan User Manual Entering Client Data To use the Goal and Expense Analysis method follow these steps 1 Gotothe Ongoing Expenses tab Assumptions OngoingExpenses Lump Sum Needs Asset Availability Support for Dependants ADD SUPPORT FOR DEPENDANT Click the Add Support for Dependant button to create a new row Education Goals Number Annual to Description Name Start Age of Years Amount Cover University Education Jeremy 18 4 0 100 Set Goals section Survivor Income category Both Objectives page Ongoing Expenses tab Level 2 Plan Goal and Expense Analysis method selected 2 Under Support for Dependants click Add Support for Dependant and then enter annual child support needed for each child that will be provided in the event of death This section does not appear if dependants have not been entered
63. Report page 2 Select Start a New Template and name the template you may also add a description 3 Choose your desired reports from the lists and press Save Page 158 of 172 NaviPlan User Manual Entering Client Data Index A accessing Help vi account fees setting 41 accounts allocating to goals 107 entering 37 entering savings strategies 39 overriding calculated return rates 40 regular savings strategies 78 setting account fees 41 setting up redemptions 40 accumulation goals entering 93 analysis methods Goal and Expense 115 123 129 Income Coverage 118 124 132 asset allocation user defined 26 Asset Allocation client report 151 asset availability disability income 133 survivor income 120 127 asset class weightings classifying 38 56 editing 57 Page 159 of 172 searching 56 asset classes setting up 26 Asset Liabilities report 33 58 assumptions asset allocation 20 26 changing province of residence 18 economic factors 8 general 8 income tax 18 inflation rate 8 milestones Level 1 10 portfolio balancing method 16 retirement date 94 retirement goal 94 Average Tax method entering income tax rates 18 B base inflation rate changing 8 benefit formula pension 71 future benefits 72 c Capital Accumulation and Redemption report 146 capital loss carryovers historical 15 cash flow calculations 62 entering 61 reports 64 145 Cash Flow report 76 NaviPlan User Manual Entering Client Data P
64. Surrender Direct Residual peer with AS Benefit Value Proceeds To Detais Death Benefit At Age On Date 0 Cash Flow v A Jl Never Premiums Cease Premiums Waived Payer Amount Frequency At Age On Date at Disability Robert v 0 I Monthly v Never m l w ADD LIFE INSURANCE A g Next Eny P Life Insurance Details dialog box Details tab Level 2 Plan Note Clicking Add Life Insurance opens a menu where you can select New Life Insurance or Copy of Current If you select Copy of Current NaviPlan creates a copy of the existing life insurance policy Use this when you have similar items to add to avoid re entering data You can view or edit other life insurance policies by clicking Previous Entry or Next Entry Page 86 of 172 NaviPlan User Manual Entering Client Data Modifying future values and premiums of a life insurance policy Level 2 To view and define the premium schedule the future value of any death benefits and the prospective cash surrender value of an insurance policy on an annual basis follow these steps 1 Gotothe Enter Financial Data Insurance Coverage page 2 Click 4 for the life insurance policy 3 Go to the Future Values tab On this tab you can view the modal premiums death benefits and estimated cash surrender values for each year Life Insurance Details O Details Future Values Future Benefits C Modify the Calculated Values Modal Accu
65. a Tax Details page Tax Details Use this page to enter above the line or below the line deductions and refundable or non refundable credits not previously defined e g adoption credit Misc Tax Deductions ADD DEDUCTION y Description Owner Type Amount Start Date End Date Actions Deduction from Total Income Robert v Deduction from Total Incom w 0 Jan 1 2013 m Death Owne m 2 xR Misc Tax Credits Description Owner Type Amount Start Date End Date Actions Refundable Tax Credit Robert v Refundable Tax Credit j 0 Jan 1 2013 a Death Ownes E 2 xR Enter Financial Data section Tax Details category Tax Details page Level 2 Plan 2 Toenter a deduction click Add Deduction and then select either Deduction from Total Income or Deduction from Net Income 3 To enter additional details click P To enter a tax credit follow these steps 1 Go to the Enter Financial Data section Tax Details category Tax Details page 2 Click Add Credit and then select either Refundable Credit or Non Refundable Credit 3 Enter the details for the credit To enter additional details click a Page 19 of 172 NaviPlan User Manual Entering Client Data Setting asset allocation assumptions You can choose whether or not to use asset allocation in individual plans in NaviPlan To use asset allocation in a plan the Asset Allocation module on the Plan Management Modules page must be selected
66. able account select the account and then click Move Up or Move Down To specify redemptions of specific dollar values or percentages of certain accounts go to the Redemptions tab and then complete the following steps 4 Click the Redemptions link Page 97 of 172 NaviPlan User Manual Entering Client Data Liquidation Strategies Liquidation Order Redemptions Bucketing Redemptions New account ADD REDEMPTION STRATEGY Account Redeem Amount Description All S or Frequency Start Date End Date Infl Add l Actions New account EJ 0 00 Monthly w Ret Client Death Client sm 0 00 2 cance Liquidation Strategies dialog box Redemptions tab Level 2 Plan Redemptions section 6 Select an account and then click Add Redemption Strategy 7 Toredeem the entire account select the Redeem All option 8 Enter the remaining details of the redemption strategy To model a bucketing strategy go to the Bucketing tab and then complete the following steps Liquidation Strategies Liquidation Order Redemptions Bucketing Distribution Bucket Target Balance Asset Class Return future Infl Add Weightings Rates Estimate s0 0 00 Investment accor v 11 00 8 Liquidation Strategies dialog box Bucketing tab Level 2 Plan Click Estimate to open the Distribution Bucket Estimator calculator Enter the number of years over which
67. add anew row click Add Disability Income 11 To indicate when assets are to be made available during the disability period complete the procedure Indicating when accounts are to be made available below Note To delete any changes and revert to the disability incomes that were created on the Enter Financial Data Cash Flow page click Reset Indicating when accounts are to be made available On the Set Goals section Disability Income category Client Co client Objectives page Asset Availability tab for either the Goal and Expense Analysis method or the Income Coverage Analysis method you can indicate when assets are to be made available 1 Go to the Asset Availability tab Assumptions Lump Sum Needs Annual Income Needs Income Available Asset Availability Use this page to control asset availability for disability needs Investment Accounts Available Available At Starting At Account Name Disability Retirement Not Available New account Joint Non Reg O O Lifestyle Assets Liquidate Liquidate At Asset Name Immediately Retirement Not Available Principal Residence Robert Lifestyle O O Education Specific Accounts The current plan does not have any education specific accounts defined Set Goals section Disability Income category Client Co client Objectives page Asset Availability tab Level 2 Plan Detailed Tax method Page 133 of 172 NaviPlan User Manual Entering Client Da
68. age 160 of 172 classifying asset class weightings holdings 38 85 Client Report Monitor Online using 155 client reports Asset Allocation 151 custom text 154 customizing 154 Financial Needs Analysis 151 Financial Needs Assessment 151 Financial Needs Summary 151 generating 151 153 Retirement Distribution Summary 151 converting DPSP to RRIF 42 RRSP to RRIF 42 correlations setting up 27 CPP QPP and OAS benefits entering 67 critical illness entering needs 138 custom text creating 154 D debt modification 79 modifiying loan payment 79 modifying loan principal 79 deficit coverage account redemption order 81 deficit coverage reports 146 defined benefit pension details 69 71 NaviPlan User Manual Entering Client Data Page 161 of 172 disability income goals Level 2 127 additional annual income 130 annual income needs 132 asset availability 133 assumptions 128 currently disabled 127 Goal and Expense Analysis 129 income available 132 Income Coverage Analysis 132 lump sum needs 130 132 ongoing expenses 129 disability insurance entering policies 89 goals Level 1 111 insurance goals Level 1 109 insurance goals Level 2 113 objectives Level 2 128 DPSP converting to RRIFF 42 duplicating reports 144 E economic factors 8 editing asset class weightings Level 2 57 education costs searching 101 education goals defining 101 determining costs 101 emergency fund goals defining 105 106 NaviPlan Use
69. age Analysis assesses the life insurance needed to replace income lost from the death of the client or co client This method is independent of the rest of the plan m Quick Assessment calculates your clients additional insurance needs on the basis of a simple comparison of their lump sum and ongoing needs to their assets available to offset those needs This assessment is designed to quickly assess your clients need and provide you with an accurate amount of additional life insurance they will require 4 To change the survivor s retirement age for the life insurance calculation go to the Assumptions tab select the Override the Retirement Age for the Survivor option and then enter the retirement age or date The default values originate from the Plan Management Assumptions Milestones page 5 To change the survivor s life expectancy for the life insurance calculation select the Override the Survivor Life Expectancy option and then enter the life expectancy age or year The default values originate from the Plan Management Assumptions Milestones page 6 Under ROR on Cash Flow Surpluses amp Liquidations enter return rates 7 To override the tax rates shown select the Override Tax Rates option and then enter the tax rates you wish to use Changing the tax rate here only affects the survivor s tax rates for life insurance calculations It does not affect rates used in the rest of the plan The default values on this pag
70. al Data section Net Worth Assets Liabilities 2 Toadd a new liability click Add Liability and then select a liability type from the menu The new liability item appears at the bottom of the liabilities menu 3 If applicable enter the liability s description balance interest rate and payment 4 If applicable from the Link to Asset menu select the asset that is linked to the liability Note An asset can be linked to more than one liability but a liability can be linked to only one asset 5 To enter additional details for the liability click the corresponding button and enter the additional information Liability Details dialog box Level 2 Plan From the Liability Details dialog box you can m Create a new liability or a copy of an existing liability by clicking Add Liability and then selecting an option from the menu new liabilities appear on the Assets Liabilities page under Liabilities m View or edit an existing liability by clicking Next Entry or Previous Entry To change the liability calculation under Calculation Options select an option from the Field to Calculate menu and then modify the remaining calculation details The calculated field updates Note NaviPlan does not allow the original principal to be lower than the outstanding balance To exclude a liability from the disability analysis select the Insured for Disability option The liability will be paid in full from disability insurance proceeds
71. al Expense button to create a new row Set Goals section Disability Income category Client Co client Objectives page Ongoing Expenses tab Level 2 Plan Goal and Expense Analysis method selected Page 129 of 172 NaviPlan User Manual Entering Client Data Under Annual Expenses enter the percentage of lifestyle expenses the disability insurance will cover The percentage entered becomes the default for the expenses listed under Expense If education expenses exist in the plan under Education Expenses enter the percentage of education expenses to be covered in the event of disability Under Surplus Strategy enter the percentage of the clients surplus cash flow you assume will be spent in future years and the percentage you assume will be saved These fields are especially useful if the clients expenses are understated m For example in one of the years after disability occurs you expect the clients to incur a cash flow surplus of 10 000 You also expect the clients to spend 25 of this surplus on miscellaneous expenses and to invest the remaining amount For this example you would enter 25 in the Percent surplus spent field NaviPlan automatically saves the remaining 75 into a non registered account If you want surpluses in the plan to be removed before performing the insurance analysis select the Assume surplus is spent option This assumption adjusts for account expenses that have not been entered into the p
72. al asset mixes are referred to as suggested asset mixes proposed portfolios and model portfolios Setting up user defined asset allocation Using NaviPlan s asset allocation you can override any asset allocation defaults set in the Asset Allocation Settings dialog box User Preferences menu Asset Allocation Settings for an individual plan You can also select different model portfolios suggested asset mixes for individual goals within a plan Since time horizon and risk tolerance are major components of asset allocation goals with different time horizons or objectives may require different investment profiles For example the clients retirement goal might not begin for 20 years or more but they may have education goals for their children starting in five years To set asset allocation assumptions for an individual plan follow these steps 1 Go to the Plan Management section Asset Allocation category Profile page 2 Click Settings Any default asset classes that were entered on the Asset Allocation Settings dialog box Asset Classes tab accessed from the Settings menu Asset Allocation Settings option appear under Asset Classes Asset Allocation Settings O Asset Classes Correlations Investor Profiles Portfolios Use this page to enter new asset classes their return rates and standard deviation as well as to edit existing asset classes Asset class data entered on this page will only affect asset
73. an add notes for yourself that are not seen by the clients To enter personalized text for reports follow these steps 1 Onany page within an open plan go to Quick Actions menu Notes and then select Add Note Notes O Status gt Status po 24 14 B 7 u 2 E Pul 24 13 10 57 E rm in Li f ii Mi awi OK CANCEL Notes menu Add Note Notes dialog box 2 Enter the text into the dialog box and then use the formatting buttons where applicable Note A spelling checker is not available Use your browser s spellcheck or copy and paste plain text from Microsoft Word Graphics are not supported To view and print all notes that were entered for this plan follow these steps 1 On any page within an open plan go to Quick Actions menu Notes and then select View All Notes Notes Summary Below is a list of notes associated with this client file To print a copy of the notes click the Print button Status gt Status User defined Note Actions ul 24 13 10 58 I R Client requests more information about PRINT Notes menu Note Summary box Page 156 of 172 Tracking success through Progress Reports NaviPlan User Manual Entering Client Data A progress plan allows you to track your clients progress against an approved plan Using this feature you can update recent changes in income account values and expenses without affecting the approved plan or chang
74. ant to add a redemption strategy and then click Add Redemption Strategy Savings Debt Modification Redemptions Surplus Use this page to enter trust or redemption strategies for the current plan Note For redemptions for non registered accounts select an available goal funding allocation from the Redeem From list Redemptions New account ADD REDEMPTION STRATEGY Account Redeem Amount Description Redeem From All Sor Frequency Start Date End Date Infl Add l Actions New account New account Unlinked v y 0 00 Monthly v Jul 10 2013 Ret 1st m 0 00 x Enter Financial Data section Strategies category Redemptions page Level 2 Plan Detailed Tax method showing redemptions 3 In the Amount or field enter either the percentage of the account to redeem or an amount to redeem periodically based on the selection from the Frequency menu OR To redeem the entire account as a lump sum select the Redeem All option 4 Selectthe Frequency at which the redemptions will occur 5 If applicable for registered accounts select the Waive Early Withdrawal Penalties option to exclude penalties due if the asset is withdrawn early 6 Enter the Start Date and End Date of the redemption Note The End Date field is not accessible if Redeem All or Lump Sum is selected 7 To index the strategy for inflation select the Infl option To index by an amount greater or less than the default inflati
75. arning Centre or a list of all available functional documents on the Functional Documents page Quick Reference Guides are designed to get you started with a particular Quick Reference workflow in NaviPlan You can access QRGs on specific topics on the related Guides QRGs page in the NaviPlan Learning Centre or a list of all available QRGs on the Quick 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 Centre 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 Centre 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 situations You can access webinars on specific topics on the related page in the NaviPlan Learning Centre or a list of all available functional documents on the Take Action Webinars page Take Action Webinars 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 vi of 172 NaviPlan User Manual Entering Client Data Chapter 2 Entering plan assumptions You must e
76. ase goals as well Registered education accounts can fund only education goals 1 On the Enter Financial Data Net Worth Accounts page click Goal Funding OR Go to the Set Goals Goal Funding page Goal Funding O Goal Funding University Emergency Account Name Owner Account Type Total Retirement Education Vehicle Fund Unallocated New account Joint Non Reg 0 0 0 0 0 100 0 0 0 0 0 0 OK CANCEL Goal Funding dialog box 2 For each account and goal enter any combination of percentages dollar amounts or the keyword balance to allocate funds to applicable goals Page 59 of 172 NaviPlan User Manual Entering Client Data Overriding previously accrued investment income NaviPlan calculates the clients accrued investment income on non registered accounts for tax purposes automatically based on the valuation date of the clients accounts To override the accrued investment income amounts follow these steps 1 Go to the Enter Financial Data Net Worth Accounts page 2 Click Previously Incurred Investment Activity Previously Incurred Investment Activity Enter the estimated investment income accrued before the valuation date on all non registered accounts Previously Accrued Investment Income il Override Bob Interest Dividends Capital Gains Return of Basis Registered Proceeds _ Include income above in cash flow Previously Paid Account Fees C
77. at Dollar Benefit Frequency Taxable Benefit Infl Add O 0 00 0 Monthly x g 0 00 Maximum Indexed Benefit Dollar Calculated As Amount Waiting Period Benefits Period None Y lo 0 2 Weeks v 3 Months Premiums Cease Premiums Payer Amount Frequency At Age On Date Infl Add Robert w 0 Monthly v 92 Ret Owner 0 00 ADD DISABILITY INSURANCE v 4 Previous Entry NextEnty gt CANCEL Disability Insurance Details dialog box Level 2 Plan Note Clicking Add Disability Insurance opens a menu where you can select New Disability Insurance or Copy of Current If you select Copy of Current NaviPlan creates a copy of the current policy Use this when you have similar items to add to avoid re entering data You can view or edit other disability insurance policies by clicking Previous Entry or Next Entry Page 89 of 172 NaviPlan User Manual Entering Client Data Entering long term care and critical illness insurance policies To enter your clients existing long term care and or critical illness insurance policies follow these steps 1 Gotothe Enter Financial Data Insurance Coverage page 2 Toadd a long term care insurance policy click Add LTC Insurance B Coverage or Cash To Insured yoo u e policy Select the person insured by the policies To add a critical illness insurance policy click Add Critical Illness Insurance and then se
78. ations Estimate Benefit and Benefit Formula Use the Estimate Benefit pension method if the pension details are unavailable Use the Benefit Formula pension method if the pension details are available When you create a new plan NaviPlan creates a default estimate benefit pension for each client Any pensions that were entered on the Set Goals Retirement page appear under Incomes on the Cash Flow page Entering an estimated benefit pension To enter an Estimate Benefit pension income follow these steps 1 Goto the Enter Financial Data Cash Flow page Defined Benefit Pensions Amount Description Member Type S or 5 Actions Defined Benefit Pei Robert v Estimate Benefit 0 yr p2 XR Defined Benefit Pei Sarah v Estimate Benefit 0 We p2 4 Enter Financial Data section Cash Flow category Cash Flow page Level 2 Plan showing Defined Benefit Pensions 2 Under Defined Benefit Pensions enter each client s annual pension amount in the Amount or fields 3 To add a new pension click the Add Benefit Pension button and then select Add Estimate Benefit Defined Benefit Pension Details Estimate or calculate the client s defined benefit pension Ifthe client is already retired and the pension amount is known enter the defined benefit income under Jncomes on the Cash Flowpage Details Future Benefits Pension Details Estimate Benefit Payable a Descripti
79. can be further defined by going to the Net Worth category Accounts page and then clicking for the newly created asset If the plan includes survivor income or disability income analysis and you want the insurance analyses to assume that pension benefits will be paid to the pension owner or survivor if the pension owner becomes disabled or dies select the Benefits Vested Survivor Disability Analysis option m Survivor benefits are only paid out if a number larger than zero is entered in the Payable to Survivor field and the pension owner reaches the age entered in the Earliest Retirement Age Survivor Analysis field before death If the Benefits Vested Survivor Disability Analysis option is selected the Earliest Retirement Age Survivor Analysis field is accessible Enter the age the pension owner must attain in order for survivor benefits to be payable if the pension owner dies Use the fields under Early Retirement to calculate how early retirement can affect the pension benefit Go to the Future Benefits tab The future pension payouts and pension adjustments appear To override the displayed items select Modify the Calculated Values and then enter the benefits you want to use Instead of entering an amount for each year on the tab you can use the Fill Values feature to fill in the amounts automatically To use this feature follow these steps Page 72 of 172 ge 2 Ne NaviPlan User Manual Entering Client Data
80. ce e cece cece ccc ceececeeeees 61 Cashstlowscaleulations 4 coi a Cer os Ge Abs tds Cee la ea lla Cae o 62 Clients cashiintlows forthe ye docs rs id 62 Clients scheduled cash outflows for the year 2 22 2 cece eee cece cece cece cece ceceeceeeeeeeseeeeees 62 Clients current year cash flow surplus or deficit 00 0000002 c eee cee cee cee cee cece eee eeeceeee 63 Manages cash flow surpluses and deficits 2 22 22 2 cece cece cee cece ccc c cee ceceeceeceeeeceeseees 64 Entering regular or lump sum incomes ne 65 Establishing CPP QPP and OAS details 2 2 2 02 e eee cece cece cece cece ccc cceectceeeeseeeesceeeesceeeesesees 67 Entering CPP QPP benefitidetails een ts dl ra ee a dol A 68 Entering OAS benetit details oros ar ticas 68 Entering pension income ns 69 Entering an estimated benefit pension 2 02 22 2 cece cece cece eee cece eee ecceceeseececeeseesees 69 Entering a benefit formula pension 2 22 2 e cece cece cee cece eee eceeceeceeseeseseeeeeseeees 71 Entering expenses rica ia aa 74 Entering surplusexpenseS ii asii Sata 75 Generating the Cash Flow report occ nes 76 Chapter 5 Entering strategies Level 2 0 0oooooococcccccccccccccccccccccccocccncccnnccnnccnnccnnccnnnos 77 Entering a regular savings strategy 02 02 2 cece cece cee eee cee nn 78 Modityittgca loatt Li a td iste 2s Soon shoes eee oe eb SiS 79 Enteringrede mptions A A o ON 80 Setting the deficit cov
81. cee cece cee ceeee 48 Entering private corporations historical data and outstanding shareholder loans 22 2 49 Entering private corporation investment accounts and subaccounts 2 02 00 eee ee eee eee eens 50 Entering other private corporation assets 2 2 22 2 eee e eee eee eee c cece cee ceccecceceececeeseeseeeees 51 Adding private corporation life insurance policies 00 000002 c eee ce cee cece cece cee eee e eee eeee 52 Entering shareholder contributions to the private corporation 0 2 22 2 cece eee c eee e cece eeeeee 53 Establishing withdrawals from a private corporation 2 2 22 22 c cece cence eee ec ee cecceceeceeseeees 53 Defining private corporations share options in the event of death 00 002222 eee eee 54 Definingassetclass WeISMUUMES bertsioa eea a e ae ad a e ro Snie oide 56 Searching the asset classifier database ooocoocccccccccccccccccccocccncccncconnco nc 56 Page ii of 172 NaviPlan User Manual Entering Client Data Editing asset class weightings Level 2d 0 2 5 2 2 4 cases sere ne e EON AEA 57 Generating the Asset Liabilities report 2 022 oo c cece eee cece a aaa DDALL LALALALA ALALA a nanan 58 FURGING goals ton O e Beil O Ao Oat e fae UNNI do de 59 Overriding previously accrued investment income 0 2 22 cee cee cee cece eee eeeeeeee 60 Chapter 4 Entering cash flow information _ 2 022 020 22 cece cece ce
82. class defaults for future plans Existing plans will not be affected but may be edited upon opening a plan Asset Classes ADD ASSET CLASS Capital Deferred Standard Description ES Interest Dividends Gains Growth Total Deviation Actions Large Cap Equity 0 000 2 400 3 010 5 250 10 660 19 610 3 Small Cap Equity 0 000 1 470 5 060 7 840 14 370 28 900 Intemational Equity o 000 1 580 4 300 5 100 10 980 24 650 x x Aggregate Bonds If 4 910 0 000 0 000 2 000 6 910 7 110 9 x Cash 3 130 0 000 0 000 0 000 3 130 3 010 Asset Allocation Settings dialog box Asset Classes tab Page 26 of 172 NaviPlan User Manual Entering Client Data 3 Under Asset Classes click Add Asset Class for each asset class you want to add to the plan 4 For each asset class enter a unique description such as Cash or Bonds and then define the return rates and standard deviation values that apply 5 Once you have made the required changes go to the Correlations tab Correlation measures how much you can expect your clients investments to change in price relative to each other Correlation works in the following manner Correlation value Historical relationship of the two asset classes 1 0 The two assets move in exactly the same direction Asset Allocation Settings Q Asset Classes Correlations Investor Profiles Portfolios U
83. clear the respective options on the Enter Financial Data Cash Flow page CPP QPP amp OAS Details 0 Monthly CPP QPP Benefits Benefit Amount Eligible or Benefit Start Monthly Benefit Est in today s Age or Retirement in future Starting In ivistuart 100 Ret Client 1 301 2030 Y Kate 100 Ret Co client a 1 062 2030 Share CPP QPP Y Include CPP QPP Retirement Benefits C Include CPP QPP Disability Benefits Y Include CPP QPP Survivor Benefits Monthly OAS Benefits Benefit Amount Eligible or Maximize Benefit Benefit Deferred Benefit Monthly Benefit Est in today s Benefit Start Age StartMonth Bonus in future Z Stuart 100 ej iamzo7 18 0 1 046 Y Kate 100 oO 67 lanzo17 4 8 1 110 Benefits Indexed At Infl Add l Total M 0 00 3 00 Individuals aged 65 and older who have salary bonus or self employment income types can make voluntary contributions to CPP QPP Voluntary Contributions to CPP QPP C Stuart C Kate CPP QPP amp OAS Details dialog box Level 2 Plan Page 67 of 172 NaviPlan User Manual Entering Client Data Entering CPP QPP benefit details T 2 Under Monthly CPP QPP Benefits select each client who is eligible to receive CPP QPP benefits Enter the percentage or dollar amount of benefits each client is eligible to receive in the Benefit
84. count Description Account Type Owner Market Value Cost Basis New account Non Registered Joint 0 0 Asset Class Weightings Class Class Class Name Percentage Class Name Percentage Cash 0 00 Bonds 0 00 Investment account 0 00 Something better 0 00 Total 0 00 Enter Financial Data section Net Worth category Asset Class Weightings page Level 2 Plan 2 Under Assets select the desired account 3 Ifthe account contains holdings select a holding 4 Under Asset Class Weightings enter the appropriate weightings of the asset classes Page 57 of 172 NaviPlan User Manual Entering Client Data Generating the Asset Liabilities report The Asset Liabilities report provides a summary of all the assets liabilities and accounts entered in the plan To generate the Asset Liabilities report follow these steps 1 Goto the Enter Financial Data section Net Worth category Assets Liabilities page 2 Click Assets Liabilities Report 3 To generate a printer friendly report click PDF or Word NaviPlan generates and opens the report in the selected format Page 58 of 172 NaviPlan User Manual Entering Client Data Funding goals You can allocate all or a portion of an account to fund specific goals By default annuities fund the retirement goal and the funding cannot be adjusted Registered retirement accounts fund the retirement goal by default but can be modified to fund education and major purch
85. curred unexpected expenses such as car repairs that use up this projected cash surplus If you think the plan s projected surplus is unrealistic NaviPlan allows you to use up the projected cash surplus by entering a surplus expense strategy The expense appears as a line item in reports Any cash flow surplus not allocated to a surplus savings or surplus expense strategy is eliminated automatically at the end of the year To enter surplus expenses follow these steps 1 Go to the Enter Financial Data Cash Flow page When you create a new plan NaviPlan automatically populates a default entry under Surplus Expenses Surplus Expenses of Start Description ES Surplus Year End Year Actions Surplus Expense 0 00 2013 Death 2 m 4 Enter Financial Data section Cash Flow category Cash Flow page Level 2 Plan 2 To add a surplus expense click Add Surplus Expense 3 For each expense enter a Description the of Surplus designated to the expense and the Start and End Years m By default surplus expense strategies end in the year before death Death 1 since there may be surpluses in that year due to estate settlement m Surplus expenses entered here also appear on the Enter Financial Data Strategies Surplus page See Entering surplus strategies on page 82 for more information Page 75 of 172 NaviPlan User Manual Entering Client Data Generating the Cash How report The Cash Flow re
86. defined income You can override the calculated tax rates by entering the desired rates into the appropriate fields m If any of the tax rates are overridden a note appears on the page and an arrow appears beside each edited tax rate m By default NaviPlan assumes that the clients province of residence also applies for tax purposes To set a tax rate schedule for another province click Tax Rate Schedule and select the province 3 Under Tax Options if the clients have agreed to split their pension income for tax purposes select the Joint Election to Split Pension Income option Page 18 of 172 NaviPlan User Manual Entering Client Data Entering tax credits and deductions Level 2 Detailed Tax method NaviPlan automatically calculates many tax credits and deductions based on the information you enter in client files and plans You can enter any applicable credits or deductions that are not automatically calculated by NaviPlan on the Enter Financial Data Tax Details page The clients cash flow funds these transactions Alternative minimum tax carryover credits RRSP TFSA and RESP contributions as well as capital loss carryovers are entered in the Plan Management Assumptions Historical Data page To avoid entering tax credits or deductions more than once review the income tax reports available from the Quick Actions Reports menu To enter tax deductions follow these steps 1 Go to the Enter Financial Dat
87. ds Asset Availability Select outstanding liabilities to be paid in full at disability If items listed under Pay OF Outstanding Liabilities are not selected the assumption is that the regular payments continue and will be part of the client s cash flow needs Adjust the to Coverfor major purchase goals to be retained in the analysis If 0 is entered for items listed under Major Purchase Goals the assumption is that the savings and needs required for those goals are not included as part of the survivor s cash flow needs Under Additional Lump Sum Needs enter additional needs that may occur in the event of disability Major Purchase Goals to Description Amount Target Date Cover Vehicle 1 Sep 12013 100 Specify Lump Sum Needs ADD LUMP SUM NEED Click the Add Lump Sum Need button to create a new row Set Goals section Disability Income category Client Co client Objectives page Lump Sum Needs tab Level 2 Plan Goal and Expense Analysis method selected 9 Under Pay Off Outstanding Liabilities select any existing loans that will be paid off in the event of disability Note This option is only available if liabilities exist in the plan and if on the Enter Financial Data section Net Worth category Assets Liabilities page Liability Details dialog box Details tab the Payoff Options at Death selection is Transfer to survivor or Payoff at first death from estate 10 Under Major Purchase Goals s
88. e 97 Overriding the proposed investor profile for a goal Level 2 Plans _ 0 222 22 e eee eee eee eee eee eee 99 Detiningreduicationeoals 2 lt lt tA ted Bh A es dd Penes e dd bet IL tere ee SA N 101 Detiningimajor purchase goals cocinar ic oe see semen 103 Defining an emergency fund goal occ nn 105 Allocating accounts to paa ti wat a setter eal e dd A e dd led Me 107 Chapter 8 Entering insurance goals l 0 0000000000000 000000000000000 0000000000000002 a202 aooaa 22an 108 Entering insurance goals for Level 1 Plans o oooocccccccccccccccccccccccccnncnccncnncn nn 109 Survivorincome Level ra EEEO EEEE EENE 109 Disability insurance Level T daroe rt er dd e AS a de aaa 111 Long term care insurance Level 1 2 00000000000000 0000000 cee cee eee cece cee LLDD LL22 2222222 112 Entering insurance goals for Level 2 Plans 22 22 eee cece cece c eee e ccc ec cece ceecceecceeseeceeeeeees 113 Survivor income goals if one client dies Level 2 0 2 0 0 o elec ccc cee cece cee cceeceeeceeeees 113 Goal and Expense Analysis method if one client dies 02 2 2 2 2c o cece cece eee e cece eceeceeceees 115 Income Coverage Analysis method if one client dies 2 02 22 2 ce cece cece cece cece eceeceeeees 118 Assigning asset availability if one client dies 2 22 2 occ cece eee eee cece ec cecceceeceeseees 120 Survivor income goals if both clients die Level 2 2 2 02 loc cece cee eee cece cece ceeceeeceeeeees 123
89. e Interest Payment Link to Actions Description EJ Value Mortgage so 5 000 s0 00 mo None B so s5o00 0 00 mo None Principal Residence Cottage Mortgage 2 so 8 000 s0 00 mo None Personal Use Property Personal Loans 0 8 000 0 00 limo None 0 12 000 s0 00 mo None Listed Personal Property Car Loans i Other Debt B Assets Liabilities Report Enter Financial Data section Net Worth category Assets Liabilities page Level 2 Plan Detailed Tax method 2 To add a lifestyle asset click Add Lifestyle Asset and then select an asset type from the menu If applicable enter the market value of the listed lifestyle asset To enter additional details for the asset click the corresponding button Lifestyle Asset Details 0 j Purchase Description EJ Type Owner Date Y Principal Residence Principal Residence Robert y Dec 312012 Purchase Current Current Adjusted Amount Market Value Value As Of Cost Base so 0 Jul 102013 so Sale Information Sell Direct After Tax FEER Asset Sale Date Proceeds To Detaits O NA m A Projected Value Projected as of Sale Dates Buying Power BeforeTax After Tax BeforeTax After Tax 0 0 0 0 Return Rates O Override Deferred Standard Growth Deviation Pre Retirement 2 00 0 00 Retirement 0 00
90. e LTC Not Available New account Joint Non Reg O O Lifestyle Assets Asset Name Liquidate at LTC Not Available Principal Residence Robert Lifestyle O Education Specific Accounts The current plan does not have any education specific accounts defined Set Goals section Long term Care category Client Objectives page Asset Availability tab Level 2 Plan 15 Under Investment Accounts select one of the following options for each account m Available During LTC if the account is available for long term care needs immediately when the client enters long term care Not Available if the account is not available for long term care needs 16 Under Lifestyle Assets and Business Entity Assets select one of the following options for each asset m Liquidate at LTC to sell the asset if a client enters long term care Not Available to hold the asset during the client s long term care period The Education Specific Accounts section is for information purposes only and cannot be modified The list includes RESPs Page 137 of 172 NaviPlan User Manual Entering Client Data Critical illness insurance goals Level 2 Critical illness refers to a medical condition where the likelihood of death is high Unexpected medical and non medical expenses often occur as a result of this condition Critical illness insurance policies are available to cover these expenses To enter lump sum critical illness expenses follow t
91. e annual account fee as a percentage of the account s market value 3 From the Frequency menu select how often the account fee will be calculated 4 To claim annual account fees as a tax deductible expense select the Tax Deductible option Note To clear any changes and revert to the defaults entered on the User Preferences Plan Settings dialog box General tab click the Reset to Defaults button Setting account reinvestment strategies To change the annual account reinvestment strategies follow these steps 1 Go to the Plan Management Assumptions General page Account Reinvestment Strategy Select the reinvestment strategy default you wish to use when creating new plans Pre Retirement Retirement Reinvest After Tax v Reinvest After Tax v RESET TO DEFAULTS Plan Management section Assumptions category General page 2 Under Account Reinvestment Strategies in the Account Reinvestment Strategies field select the reinvestment strategy to specify how account investment income will be reinvested Page 9 of 172 NaviPlan User Manual Entering Client Data m Reinvest After Tax pays investment income taxes from investment income then reinvests the remainder investment income into their source accounts m Reinvest All invests all investment income into their source accounts all taxes caused by investment income will be paid by cash flow Don t Reinvest converts all investment income in
92. e asset class select the class from the Asset Class Weightings menu OR If the holding is weighted in multiple asset classes select Manual Classification from the Asset Class Weightings menu Assign percentages to various asset classes to equal 100 and then click OK 4 To manually set the return rates for the holding click the Return Rates link to open the lt holding gt Return Rates dialog box Select Override and then change the appropriate return rates and standard deviations Page 38 of 172 NaviPlan User Manual Entering Client Data Entering a hold on a holding within an account To stop a specific portion of a holding within an account from being included in asset reallocation follow these steps T 2 3 Go to the Enter Financial Data Net Worth Accounts page Click 4 On the Holdings tab in the Hold S field enter either the percentage or the dollar value of the specific holding that should be excluded from asset reallocation Entering savings strategies for accounts Savings strategies can be set up either when entering an account or at a later time To define regular savings or contributions to an account follow these steps ao AN E Go to the Enter Financial Data Net Worth Accounts page Under Registered and Non Registered Accounts click for the appropriate account Go to the Savings Strategy tab Click Add Savings Strategy Holdings Savings Strategy Redemptions Return Rates Acco
93. e id cn M MN O specific amount Vyr mo ADD TO RETIREMENT EXPENSES Retirement Expenses ADD RETIREMENT EXPENSE Click the Add Retirement Expense button to create a new row Retirement Incomes If CPP QPP OAS or defined benefit pensions are entered on the Enter Financial Data section Cash Flow category Cash Flow page do not enter them in this section Only enter additional retirement incomes in this section Click the Add Retirement Income button to create a new row Asset Allocation Goal Funding Liquidation Strategies Transfer Strategies Retirement Accounts 0 Linked Asset Class Description Account Type Owner Market Value Cost Base Linked Amount Weightings ROR Savings New account RRSP Robert 0 0 100 0 Unclassified 0 00 1 Unassigned Accounts 0 Unassigned Asset Class Description Account Type Owner Market Value Cost Base Unassigned Amount Weightings ROR Savings New account Non Registered Joint 0 0 100 0 Unclassified 0 00 1 Set Goals section Retirement category Retirement page Level 2 Plan 2 Under Objectives enter your clients retirement ages or the years at which your clients want to retire and then enter your clients life expectancies 3 To change the clients investor profile for retirement Under Profile the investor profile used by the plan is shown Select the Override option and then select the alternative investor profile you want to apply t
94. e of current income needed during survivorship under Current Income Level Calculator enter a percentage in the to cover field and then click Add to Annual Income Needs The income need now appears under Annual Income Needs To define a new annual income need that will apply during survivorship under Annual Income Needs click Add Annual Income Need and then enter all applicable data Assumptions Lump Sum Needs Annual Income Needs Survivor sIncome Asset Availability Define the income requirements if the client dies Only annual needs entered on this page will be taken into consideration in the analysis Any expenses or needs for retirement entered in the plan s regular cash flow will be included when using the Income Coverage Analysis method Choose whether education goals will be included in the analysis Including education goals will increase the cash flow needs Current Income Level Calculator Household Pre tax Income to cover Amount 0 x 0 so ADD TO ANNUAL INCOME NEEDS Annual Income Needs ADD ANNUAL INCOME NEED Click the Add Annual Income Need button to create a new row Support for Dependants ADD SUPPORT FOR DEPENDANT Click the Add Support for Dependant button to create a new row Scenario Surplus Percent Surplus Spent 0 Percent Surplus Saved 100 Education Goals Annual to Description Name Amount Cover University Education Jeremy 1 100 Set Goals section Survivor Income categor
95. e originate from the Plan Management Assumptions General page Note The provice tax rate is added to the displayed average marginal and long term capital gains tax in income tax calculations Province tax deductions at the federal level are considered 8 Complete one of the following procedures m Goal and Expense Analysis method if one client dies on the next page m Income Coverage Analysis method if one client dies on page 118 m Survivor Income Objectives Quick Assessment on page 1 m Using the Human Life Value calculation on page 1 Page 114 of 172 NaviPlan User Manual Entering Client Data Goal and Expense Analysis method if one client dies The Goal and Expense Analysis method must be selected on the Set Goals Survivor Income Client Co client Objectives page See Entering insurance goals for Level 2 Plans on page 113 To use the Goal and Expense Analysis method follow these steps 1 Go to the Ongoing Expenses tab 2 Under Annual Expenses enter the percentage of lifestyle expenses to be covered by life insurance proceeds The percentage entered becomes the default for the expenses listed under Expense Note Pre retirement or retirement expenses must be entered in the plan for the Expense fields to appear on this tab 3 To select a different percentage for an individual expense clear the corresponding Use Defaults option and then enter the percentage in the to Cover field Assumptions OngoingExpense
96. eates an account with holdings and the Account Details dialog box opens 3 Enter a unique Description such as name or account number to identify this account holding 4 From the Account Type menu select the tax category of the account for example Non Registered or RRSP 5 Selectthe Owner of the account 6 Enter the current Market Value of the account If the account is a non registered simple account complete the Cost Base field OR If the account is a registered account with holdings click the link under Cost Base to open the Account Details dialog box In the Cost Base field enter the amount of the after tax contributions 7 If the account is fully weighted in one asset class select the class from the Asset Class Weightings menu OR If the account is weighted in multiple asset classes select Manual Classification from the Asset Class Weightings menu Assign percentages to various asset classes to equal 100 and then click OK Page 37 of 172 NaviPlan User Manual Entering Client Data From the Account Details dialog box accessed by clicking P you can m Assign the account to a specific goal or multiple goals by making a selection from the Goal Funding menu m Stop a portion of an account from being included in asset reallocation by entering either the percentage or the dollar value of the amount to be excluded from reallocation in the Hold S field m Create a new account by clicking Add Account and then selecting
97. ed Benefit Pei Robert v Estimate Benefit Defined Benefit Pe Sarah Lv Estimate Benefit Amount S or ADD BENEFIT PENSION v Actions 0lyr 4 X Oly Enter Financial Data section Cash Flow category Cash Flow page Level 2 Plan Defined Benefit Pensions 2 To add anew pension click Add Benefit Pension under Defined Benefit Pensions and then select Add Benefit Formula Defined Benefit Pension Details Estimate or calculate the client s defined benefit pension Ifthe client is already retired and the pension amount is known enter the defined benefit income under Jncomes on the Cash Flowpage Details Future Benefits Pension Details Estimate Benefit Payable Description ES Member Start Age Start Date to Survivor Defined Benefit Pension Rober w 92 Ret Cien 0 of Final Salary 0 Commuted Est Benefit Amount in today s Value so so Maximum Infl Add l Total Indexing w 1 75 4 75 3 00 Benefit Payout Options Benefits Vested Earliest Retirement Age Method of Payout Survivor Disstiity Analysis Survivor Analysis Life Income Y m 55 Transfer Payout To Account Locked in Registered Asset Deisis Portion Registered Asset N A Ed 0 N A ADD BENEFIT v 4 Previous Entry NextEntry gt Linked Incomes O Salary Account 7 Detsis Portion A 0 Defined Benefit Pension Details dialog box Details tab Level 2 P
98. ed details in the fields that appear 7 Under Education Goals enter the percentage of education goals the disability income will need to cover This section is only available if education goals are entered in the plan 8 Once all annual income needs are entered go to the Income Available tab Disability insurance policy benefits Social Security benefits salaries rental income and pensions from the non disabled client are listed Page 132 of 172 NaviPlan User Manual Entering Client Data Assumptions Lump Sum Needs Annual Income Needs Income Available Asset Availability Enter any incomes that the clients will receive if either of them is disabled or any additional income the clients will receive for example ifone must return to work to support the disabled person If the disability occurs during the retirement period any pension benefits entered on the Financial Picture Cash Flow page will flow through to the current page Click Reset to delete any changes and refresh the income list with the regular incomes entered on the Financia Picture Cash Flowpage Income Available During Disability ADD DISABILITY INCOME Click the Add Disability Income button to create a new row Set Goals section Disability Income category Client Co client Objectives page Income Available tab Income Coverage Analysis method selected 9 Enter any additional incomes that the client or co client will receive during disability 10 To
99. ed funding amounts exceed the value of the account fixed amounts are funded first and the remaining funds are automatically distributed on a pro rata basis Goal Funding O Use this page to allocate accounts towards goals Enter any mix of percentages dollar amounts or the word Balance however all accounts must be 100 allocated Accounts not assigned to a goal can represent emergency funds or funds allocated for estate planning transfers Goal Funding University Emergency Account Name Owner Account Type Retirement Education Vehicle Fund Unallocated New account Joint Non Reg 0 0 0 0 0 100 New account Robert RRSP 0 100 0 0 0 0 0 0 0 0 0 0 Goal Funding dialog box All accounts allocated toward the goal appear on the Retirement Education Major Purchase or Emergency Fund pages under Accounts To expand or collapse this information click the Accounts link The market value of each account displayed under lt goal gt Accounts reflects the market value for the account and not the actual amount allocated to the goal Any accounts not allocated to a goal appear under Unassigned Accounts Page 107 of 172 NaviPlan User Manual Entering Client Data Chapter 8 Entering insurance goals This chapter explains how to enter insurance goals in Level 1 and Level 2 Plans Insurance goals are entered on separate pages depending on the type of insurance In this chapter Entering insurance goals fo
100. efined Asset Allocation 26 Page 7 of 172 NaviPlan User Manual Entering Client Data Entering general assumptions The Plan Management Assumptions General page varies depending on the plan level and the income tax method selected for the plan Changing economic factors To change basic economic factors such as the inflation rate follow these steps 1 Go to the Plan Management Assumptions General page General Milestones Historical Data Current Portfolio Setting Income Tax Economic Factors Base Inflation Rate 3 00 ISO ae Plan Management section Assumptions category General page Level 2 Plan Detailed Tax method 2 Under Economic Factors enter the base inflation rate 3 To view a graph of historical inflation rates from 1914 to 201 click Inflation Rate Graph 4 To focus on more recent data under Select A Graph To View click the 1914 201 and 2003 201 links To return to the General page click Close Page 8 of 172 NaviPlan User Manual Entering Client Data Setting annual account fees To change the annual account fee and frequency follow these steps 1 Go to the Plan Management Assumptions General page Annual Account Fees Annual Account Fee 0 00 Frequency Quarterly v Tax Deductible v RESET TO DEFAULTS Plan Management section Assumptions category General page 2 Under Annual Account Fees in the Annual Account Fee field enter th
101. either an account type or Copy of Current if you select Copy of Current NaviPlan creates a copy of the existing account m View or edit another account by clicking Next Entry or Previous Entry Entering holdings To enter the holdings within an account follow these steps 1 Go to the Enter Financial Data Net Worth Accounts page If no holdings exist for an account an Add button appears under Holdings If holdings already exist for the account the number of holdings appears as a link 2 Under Holdings click Add or the numbered link for the appropriate account If you are creating the account s first holding the default holding New Holding appears Note If user defined holdings already exist click Add Holding for each new holding you want to add Or click a next to Add Holding then select either Blank Holding or Classified Holding Holdings Savings Strategy Redemptions Return Rates Account Fee Setup Holdings Classify Reset Symbols EUDICT ca Market Valuation Asset Class Return Description Symbol Value Hold Cost Base Date Weightings Rates Actions IG AGF Canadian Bonds IG 6 516 25 5 250 Jun 272014 Canadian Bonds v 3 27 Account Details dialog box Holdings tab Level 2 Plan 3 If you are using predefined asset allocation enter the holding s Symbol and then click Classify NaviPlan enters the symbol s description and asset class weighting OR If the holding is fully weighted in on
102. elect any goals that will be paid for in the event of disability Note This option is only available if major purchase goals exist in the plan 11 If you expect any other lump sum needs during disability under Additional Lump Sum Needs click Add Lump Sum Need and then enter the details of the need in the fields that appear 12 To indicate when assets are to be made available complete the procedure Indicating when accounts are to be made available on page 133 Page 131 of 172 NaviPlan User Manual Entering Client Data Disability Income Income Coverage Analysis method The Income Coverage Analysis option must first be selected on the Set Goals section Disability Income category Client Co client Objectives page To use the Income Coverage Analysis method follow these steps 1 Go to the Lump Sum Needs tab Assumptions OngoingExpenses Additional Annual Income Lump Sum Needs Asset Availability Select outstanding liabilities to be paid in full at disability If items listed under Pay OF Outstanding Liabilities are not selected the assumption is that the regular payments continue and will be part ofthe client s cash flow needs Adjust the ro Coverfor major purchase goals to be retained in the analysis If 0 is entered for items listed under Major Purchase Goals the assumption is that the savings and needs required for those goals are not included as part ofthe survivor s cash flow needs Under Additional Lump Sum Needs ente
103. ent Mortgage Principal 0 All Other Loans 0 Education Goals Emergency Fund 0 Final Expenses burial probate etc 0 Any Additional Needs 0 Total Lump Sum Needs 23 032 Ongoing Needs Annual Ongoing Needs are 0 for 0 years You require 0 to meet your calculated ongoing need Available Assets to Offset Needs LJ Available Asset Override Ma Copy Available Assets from Sarah s Assessment Realizable Assets 11 800 Existing Life Insurance Policies Total Available Assets Financial Assessment section Financial Assessment category Insurance page Assumptions Inflation Rate 3 00 Assumed Return Rate 5 00 Survivor s Tax Rate 30 00 Results Total Lump Sum Needs 23 032 plus Total Ongoing Needs 0 less Total Available Assets 311 800 Additional Life Insurance Needed so Page 121 of 172 NaviPlan User Manual Entering Client Data 2 Use the tabs along the top of the page to select a survivorship situation 3 Enter all lump sum needs in the Lump Sum Needs container Note Mortgage Principal All Other Loans and Education Goals are calculated by based on data collected from elsewhere in the assessment To manually enter data for these fields select the Lump Sum Needs Override option 4 Enter all Ongoing Needs your client will need to pay in the selected survivorship situation The default entry is based on data entered elsewhere in the plan and is meant to show t
104. ent Frontier line shows the return rate and standard deviation of that point Double clicking at a certain point on the line of the Efficient Frontier graph selects that point as the new suggested asset mix Or you can click on the line which brings up a balloon message and then press the ENTER key Use this process as an alternative to overriding the standard deviation manually Page 24 of 172 NaviPlan User Manual Entering Client Data 4 When generating an efficient frontier by default NaviPlan does not restrict the asset classes or the holding percentages within each asset class To override these defaults follow these steps a Click Individual Constraints In the dialog box that opens you can set the minimum or maximum holding percentage for a single asset class Individual Constraints Asset Class Exclusion Class Name ivi Large Cap Growth Equity HS 8 OHA K RK x K K K w Large Cap Value Equity Mid Cap Equity Small Cap Equity US REITs International Equity Emerging Markets Equity Long Term Bonds Intermediate Term Bonds Short Term Bonds High Yield Bonds International Bonds Cash REVERT TO DEFAULTS Please indicate a reason for the exclusion Minimum Maximum Holding 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 Holding 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 00 100 0
105. erage order Detailed Tax method 0 0 2 22 eee eee cece eee e cece cceeceeceeeees 81 Entering surplus strategies ias 82 Assumptions when entering multiple strategies of the same type 02 2 02 02 c cece ee eee cence eee 82 Assumptions when entering multiple strategies of different types 2 0 22 2 2 e eee eee eee e ee 82 Chapter 6 Entering insurance coverage and tax details _ 2222 02 ce eee eeee 84 Page iii of 172 NaviPlan User Manual Entering Client Data Entering life insurance policies kasenenan sanana atts ide te a or ee lt da 85 Modifying future values and premiums of a life insurance policy Level 2 02 22 22 eee eee eee 87 Entering disability insurance policies 2 22 2 o cece cece ene c cece cece cee daaa ies 89 Entering long term care and critical illness insurance policies 00 00022 c eee cee eee eee eee eee 90 Generating the Insurance report 22 vs ecco fe LA eee oie a vin Bae ke Sed so oie a ee ESSE 92 Chapter 7 Entering accumulation goals _ 2 2 2 0 2 2 2 22 e cece cece cece nec e cece ce ceeceeceeseseeseeses 93 Retinement soal assumptions morelia e A a tt bs a 94 Retirementdate assUMptONS Teo lcrdr stars eeaeee recta de 12 ne Netos ene 94 Retirement goal reporting o nn 94 Defining retirement goals e OE NOD ie e aa Bi ue 95 Defining liquidation order in retirement Level 2 Plans 002 00222 c eee c eee cee cece cece eeee
106. erm Care Expenses click Add LTC Expense and then enter the expense details in the fields that appear 10 For expenses that occur when long term care begins the Start Date field displays LTC You can enter a later start date if necessary 11 You can change the end date by editing the Number of Years or the End Date fields 12 Go to the Income Adjustments During LTC tab All incomes entered into NaviPlan for this client and received by the client during the long term care period appear on this tab Assumptions LTC Expenses Income Adjustments During LTC Asset Availability Modify the percentage of income in the Owner in L7Cfield if the client expects to receive regular income during LTC Existing Incomes Description Income Type Frequency Amount Start Date End Date Infl Add Owner in LTC Other Taxable Other Taxable Monthly 0 Ret Ow m Death 0 E 0 00 100 Set Goals section Long term Care category Client Objectives page Income Adjustments During LTC tab Level 2 Plan 13 Inthe Owner in LTC field specify the percentage of the income available to the client or co client during long term care 14 Gotothe Asset Availability tab Page 136 of 172 NaviPlan User Manual Entering Client Data Assumptions LTC Expenses Income Adjustments During LTC Asset Availability Use this page to control asset availability for long term care needs Investment Accounts Available During Account Nam
107. err v Infl Add l Total Premium Refund Percentage w 0 00 3 00 0 00 ADD CRITICAL ILLNESS INSURANCE v CANCEL Note Clicking Add LTC Insurance or Add Critical Illness Insurance opens a menu where you can select New LTC Insurance New Critical Illness Insurance or Copy of Current If you select Copy of Current NaviPlan creates a copy of the current policy Use this when you have similar items to add to avoid re entering data You can view or edit other critical illness or long term care insurance policies by clicking Previous Entry or Next Entry Page 91 of 172 NaviPlan User Manual Entering Client Data Generating the Insurance report The Insurance report provides a summary of all the insurance coverage entered in the clients plan and can be used to verify data entry or quickly view all coverage To generate the Insurance report follow these steps 1 Go to the Enter Financial Data Insurance Coverage page 2 Click Insurance Coverage Report Page 92 of 172 NaviPlan User Manual Entering Client Data Chapter 7 Entering accumulation goals When you create a plan you must select the modules you want to use The selected modules determine the types of goals you can enter in the plan In each plan you can only use the financial planning modules that are selected on the Plan Management Modules page In this chapter Retirement goal assumptions nes 94 Retirement date assumptions oscila ii tia 94 Re
108. es select any existing loans that will be paid off by insurance proceeds m For each loan that is not selected NaviPlan assumes that the payments continue and will be included as part of the survivor s cash flow Note This option is only available if liabilities exist in the plan and if on the Enter Financial Data section Net Worth Assets Liabilities Liability Details dialog box Details tab the Payoff Options at Death selection is Transfer to survivor or Payoff at first death from estate 12 Select any future major purchase goals that will be paid for in the event of death This option is only available if major purchase goals exist in the plan 13 Under Additional Lump Sum Needs if any other lump sum needs are expected click Add Lump Sum Need and then enter the details of the need in the fields that appear 14 To indicate when accounts are to be made available during the survivorship period complete the procedure Assigning asset availability if one client dies on page 120 Page 117 of 172 NaviPlan User Manual Entering Client Data Income Coverage Analysis method if one client dies The Income Coverage Analysis option must first be selected on the Set Goals Survivor Income Client Co client Objectives page See Entering insurance goals for Level 2 Plans on page 113 To use the Income Coverage Analysis method follow these steps I 2 Go to the Annual Income Needs tab To calculate a percentag
109. es ccoo 65 Establishing CPP QPP and OAS details 22 0 2 e eee eee eee cece cece ccc eeccceeececeeececeeeseeeerees 67 Entering CPP QPP benefit details o o oo ce cece cee eee ceeececeeececceeeeceeettceeereeees 68 Entering OAS benefit details 2 5 52 26 0ccececee cen csadeceencaudseceeseoassicohiiacacassee peceesoeceeeesuse 68 Entering pension income _ _ 2 2 2 22 2 ec eee eee cece eee e cece cece cece eee eeceeceececeeceeceecesseseeeees 69 Entering an estimated benefit pension _ 0 2 2 o cece cece cence eee cee cece cee ceececeeceeeees 69 Entering a benefit formula pension rn 71 Entering expenses ns 74 Entering surplus expenses nes 75 Generating the Cash Flow report __ 2 2 22 2 2 oe cece rn 76 Page 61 of 172 NaviPlan User Manual Entering Client Data Cash flow calculations These calculations apply to all plan levels unless specific levels are mentioned NaviPlan makes the following annual calculations Clients cash inflows for the year m Annual asset returns based on how you define the assumptions for each asset such as o The asset class weightings and the return rates assigned to each asset class o The return rates entered for each specific asset o The valuation date for each account or holding m Allitemized income from other sources entered on the Enter Financial Data Cash Flow page such as salaries m Income from annuitized annuities entered on the Enter Financial Data
110. eterborough ON O Tuition Room 16 300 Redeemer University College Ancaster ON The University of Western Ontario London ON Trent University Peterborough ON University of Guelph Guelph ON University of Ottawa Ottawa ON University of Toronto Toronto ON X Data Source Peterson s Databases copyright 2014 Peterson s Nelnet LLC All rights reserved Search Education Costs dialog box showing search results Page 101 of 172 NaviPlan User Manual Entering Client Data 5 Under Search Results select the school of your choice and then select an expense option for example Tuition or Tuition Room 6 Click OK The value is populated in the Annual Cost field 7 To change the clients investor profile for a specific education goal do the following a If the Asset Allocation module is selected on the Plan Management section Modules category Modules page under Investment Profile select the Override option for the education goal and then select another investment profile m Overriding the proposed investor profile for a goal Level 2 Plans on page 99 8 To add additional expenses to the education goal click 4 m If applicable change the Inflation Rate for the goal m To add an education expense click Add Education Expense 9 When you have finished entering details click OK m f multiple expenses were entered for the goal the total projected cost of the objective appears under Education Ob
111. ettings dialog box Templates tab Settings menu System Settings 9 Click OK NaviPlan saves your selections 10 To generate the report click Generate If you generated this report before this button appears as Regenerate If you are using NaviPlan Online the Status column updates To view the report or view the status of other reports see Using the Client Report Monitor on page 155 Note In NaviPlan Offline you may have to click Refresh to update the Status column Page 153 of 172 NaviPlan User Manual Entering Client Data Preparing 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 User Defined Text page 2 Under Objectives Recommendations or Action Plan click Add User Defined Text Entry My Quick Picks vxj JX Ala zu Ql l i e we arm J Save to my Quick Picks for future use ADD TEXT ENTRY v f 4 Previous Entry NextEntry gt CANCEL User Defined Text Entry dialog box Page 154 of 172 NaviPlan User Manual Entering Client Data Using the Client Report Monitor The Client Report Monitor allows you to continue using NaviPlan while generating traditional client rep
112. gages iii ti dde sonda 36 Enter in CCOUNAES 12 a fe 8 Oe a e O Pi ete o ei 37 Ereatine aCCOUNES Ir To eoliano tir ideal 37 Entering holding e A e backs Vo ee e N S 38 Entering a hold on a holding within an account 2 2 020022 e ee cence cnn 39 Entering savings strategies for accounts _ 2 22 2 022 nn 39 Setting up a redemption strategy for an account Level 2 Detailed Tax 22 02 22 cece eee eee ee 40 Overriding calculated return rates for accounts 2 22 22 2 2 cece cece eee conocen 40 Setting the account fee for an account ones 41 Converting accounts to retirement income funds 20 00220 o eee cece cece ee ccoo 42 Converting RRSPS or DPSPs to RRIFS 222 0 6 2 so oe sees bee yw Seek Seed hea Ss pee ee sas Sn 42 Setting Up RPPS UFS andi EIRAS A soe Att ht eo te At dd Aes ceo aL Bhd DAS ae Ce nh te 42 BY a da 201 eR E e cara eee a O a iaa a 43 Entering fixed income streams nas 45 Entering guaranteed withdrawal benefit plans 00 0 00000 o cece cece cee cee cee cee eceeeeeee 45 Entering payout options for guaranteed withdrawal benefits 00 0000 0 022 c ee eee ee eee eee eee 46 Entering savings strategies for guaranteed withdrawal benefits 0 000000 0022 cee eee eee ee eee ee 47 Entering privatecorporationsS su oon ceo nt ck em dace esis sche casal Mathys meade aeheeneiiasionaeensdae en 48 Establishing the private corporation s share structure 0000 02 e cece cee cee cee
113. ges are numbers oriented and often contain projection tables o 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 148 of 172 NaviPlan User Manual Entering Client Data 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 section name will be printed in the report To edit the position of report pages drag and drop the page titles into the order you would like gt Add Section 0 Select All x Remove BUILD REPORT Results Next Gen 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 fo
114. ghtings To search the asset classifier database do the following 1 Go to the page or dialog box of the asset for which you want to set the asset class weightings 2 From the Asset Class Weightings menu select Search Search Ticker Symbol CUSIP Type Asset Class Description SEARCH Asset Class Weighting Details dialog box Please use wildcards in your searches 3 Under Asset Class Weightings Options select Use Asset Classifier Search 4 Under Search enter the search criteria and then click Search The results of the search appear under Results If you are unsure of all the letters in a symbol or name insert an asterisk for wildcard searches For example to search for assets that begin with br enter br in the Ticker Symbol field 5 Under Results select the appropriate asset and then click OK Page 56 of 172 NaviPlan User Manual Entering Client Data Editing asset class weightings Level 2 In addition to editing asset class weightings from the account s dialog box you can also edit asset class weightings for any account on the Asset Class Weightings page To edit the asset class weightings of an existing account follow these steps 1 Go to the Enter Financial Data Net Worth Asset Class Weightings page Assets Liabilities Accounts Holding Companies Asset Class Weightings as New account Account ES Selected Asset Summary Ac
115. gies can be entered to reflect changes to savings amounts over time Non Registered Choose Account v Pas Amount Direct Savings To S or of Salary Frequency g Start Date End Date Infi Add l Actions New account Joint Non Reg 0 00 Monthly Jan1 2013 Ret 1st E 0 00 x Registered New account RoberuRRSP EEEN Amount s or of Salary Constrained Direct Savings To Owner Employer Frequency Start Date _ End Date __ Infl Add l by Cash Flow Actions New account Robert RRSP 0 00 Monthly w Jan 12013 m Ret Owner 0 00 x 4 Consider using a maximizer savings strategy to reduce any excess RRSP contributions and eliminate any unused deduction room Refer to Help To view or edit how surplus funds are directed click Surplus Cash Usage Surplus Cash Usage Enter Financial Data section Strategies category Savings page Level 2 Plan Detailed Tax method 2 Under Non Registered or Registered from the Choose Account menu select the account to which you want to add a savings strategy and then click Add Savings Strategy 3 Enter all the details of the clients savings plan including the amount or percentage frequency and the time frame of savings Note If the savings amount was entered as a percentage of salary the Infl option is inaccessible and the savings are indexed by the Infl percentage indicated for the salary 4 Ifyou have entered a savings amount
116. he Profile page NaviPlan displays the investor profile and suggested asset mix based on the responses to the questionnaire Questionnaire Profile Investor Profile C Override Investor Profile Select an investor profile Moderate Plan Management section Asset Allocation category Profile page 5 To override the default profile select the Override Investor Profile option and then select a different investor profile from the menu Page 22 of 172 NaviPlan User Manual Entering Client Data 6 You can modify the asset mix in the proposed portfolio by clicking Customize Asset Mix and then selecting either the Weightings option or the Optimize option Select the Weightings option to manually adjust the asset class weightings of the portfolio Select the Optimize option if you want to generate a new portfolio based on an efficient frontier graph Editing Asset Class Weightings The Weightings option is only available on the Profile page Note If you do not have the user permission to override the asset class weightings this option is not available To edit asset class weightings follow these steps 1 If applicable scroll to the bottom of the Profile page 2 Click Customize Asset Mix and then select Weightings Asset Class Weightings 2 Asset Class Weightings 73 Override default asset class weightings Class Class Class Name Percentage Class Name Percentage Large Cap Growth Equity 4 00 Large Cap Value
117. he amount of annual income necessary to replace the decedent s income m To modify these assumptions select the calculator icon and modify any of the assumptions in the Ongoing Needs dialog box m You can also specify how much of the decedent s income is necessary to replace for different time periods 1 From the Ongoing Needs section enter an ongoing need and a number of years for the first row This comprises the first period 2 Click Add Ongoing Need 3 Enter an annual ongoing need and a number of years for the newly created row This comprises the second period and immediately follows the previous period 4 Repeat step 3 until you are satisfied 5 Enter all assets available to cover needs in the selected survivorship situation These assets are divided into two categories m Realizable Assets This field represents the value of assets that are easily converted to cash in the event of a death m Existing Life Insurance Policies This field represents the value of existing life insurance policies already entered in the assessment The value of these assets is calculated by NaviPlan to modify these values select Available Asset Override and enter new data 6 Review the information NaviPlan is using for this analysis in the Assumptions container and make any changes you wish 7 NaviPlan now calculates your clients need for additional life insurance and displays its recommendations in the Results container Page 122 of 172 Navi
118. he number of common shares owned by each shareholder the paid up capital per share and total value and the adjusted cost base per share and total value 4 Under Preferred Shares enter the Redemption value per share 5 Enter the number of preferred shares owned by each shareholder the paid up capital per share and total value and the adjusted cost base per share and total value 6 In the Annual Dividend Yield of Redemption Value field enter the percentage of Redemption value per share to pay annually as dividends to shareholders of preferred shares 7 From the Dividend Type menu indicate whether the dividends are taxable or non taxable Entering private corporations historical data and outstanding shareholder loans To define the private corporation s notional account and carryover details as well as any shareholder loans to the private corporation that are still outstanding follow these steps 1 Go to the Historical Data tab Page 49 of 172 NaviPlan User Manual Entering Client Data Private Corporation Details e Total Value of Shares Corporate Year End Description Wayne Jan Other Province of Incorporation Province of Taxation information only Private Corporation 0 0 0 Northwest Territories v Northwest Territories vw Dec 31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Add any notional account end of year values or carr
119. hese steps 1 Go to the Enter Financial Data Net Worth Accounts page 2 Under Registered and Non Registered Accounts click 4 for the appropriate account 3 Go to the Return Rates tab Page 40 of 172 NaviPlan User Manual Entering Client Data Savings Strategy Redemptions Return Rates Account Fee Setup Pre Retirement Retirement Reinvestment Strategy Reinvest y Reinvest Y after tax income _ _ 4 d as _t C Override Pre Retirement Retirement Interest 0 00 0 00 Dividends 0 00 0 00 Capital Gains 0 00 0 00 Deferred Growth 0 00 0 00 Total 0 00 0 00 Standard Deviation 0 00 0 00 Account Details dialog box Return Rates tab 4 Select the Override option and then revise the return rates and standard deviations Setting the account fee for an account NaviPlan allows you to set a default account fee for the client from the Settings menu Plan Settings General tab and for a plan on the Plan Management section Assumptions General You can also set the account fee for an individual account in the Account Details dialog box To set the account fee for an account follow these steps 1 Go to the Enter Financial Data Net Worth Accounts page 2 Under Registered and Non Registered Accounts click for the appropriate account 3 Go to the Account Fee Setup tab Savings Strategy Redemptions Return Rates Registered Account Setup Accoun
120. hese steps 1 Go to the Set Goals Critical Illness page Client Objectives Co client Objectives Enter any lump sum expenses here that will be incurred in the event of a critical illness All expenses will occur on January 1 2014 Note Insurance premiums for life disability critical illness and long term care should be added under the appropriate policy section Critical Illness Insurance Lump Sum Expenses L ILLNESS LUMP SUM EXPENSE Description Type Amount Infl Add l Actions Critical Illness Expense Non Medical A 0 17 0 00 x Select outstanding liabilities to be paid in full at critical illness If items listed under Pay OF Outstanding Liabilities are not selected the assumption is that the regular payments continue and will be part ofthe client s cash flow needs Pay Off Outstanding Liabilities Set Goals section Critical Illness category Critical Illness page 2 Toadd a new expense click Add Critical Illness Lump Sum Expense 3 Enter all applicable medical and non medical expenses that the client and co client will incur if critical illness occurs Page 138 of 172 NaviPlan User Manual Entering Client Data Chapter 9 Examining results After you have entered your clients financial information and goals into a plan you can prepare and generate results When you are satisfied with the results you can generate professionally designed client reports that you can distribute to your cl
121. ients In this chapter Using the Planning Assistant cc ns 140 Opening the Planning Assistant voice isa 140 Viewing and or printing the Planning Assistant reports 0222 2 cece cece ccc ceeeccceeccceeeceeeeeeee 141 Using reporting options in NaviPlan _ 2 22 22 2 eee e cece ce eee cnc nr 143 Standalone reports and graphs nn 143 A RR OA 147 Traditional client reports nn 151 Preparing personal notes for reports 2 2 2 22 cece eee eee ee cece cee cece LDPD LIDIL LLa anaa 154 Using the Client Report Monitor 2 22 26 tic eaS 155 Adding notes for your own personal use _ 2 2 22 2 22 ence rs 156 Tracking success through Progress Reports 2 22 2 0 e cece cece cece cee cee ceceeceeceececeeseeseeees 157 Page 139 of 172 NaviPlan User Manual Entering Client Data Using the Planning Assistant The Planning Assistant displays a broad overview of the potential success of the plan It summarizes potential problems opportunities and questions You can use the Planning Assistant reports to analyze the financial data in your clients current or recommended plan These reports identify the strengths and weaknesses of the plan In some cases the reports identify something discretionary that does not apply to the current plan and can be ignored In other cases the reports identify an improvement that could be made with a simple data change Sometimes following the recommendations requires using
122. ile 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 m 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 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 150 of 172 NaviPlan User Manual Entering Client Data Traditional client reports The following client reports are available in NaviPlan for Level 1 and Level 2 Plans and are accessible from the Results Client Report page Client ean Description report Financial Say ak F Need This report provides an overview of the clients current financial situation and eeds indicates whether the clients goals are attainable Assessment iict This report demonstrates the effects that the clients time horizon risk tolerance sse F i e Ali
123. ing the clients goals The progress plan is populated with information from the approved plan s Current Plan scenario If any recommendations from the approved plan were not acted upon you may have to make adjustments to the updated plan to accurately reflect the clients current financial situation You can compare your clients progress and the approved plan by generating a Progress report This report helps you to determine how well your clients are staying on track towards attaining their financial goals To create a progress plan follow these steps 1 2 6 Click Build Report to create progress report Go to the Plan Management section Plan List category Plans page Select the approved plan and then click Plan Options select the Create Progress Planbutton and press Engagement Options Choose your desired engagement and press finish A copy of the approved plan appears in Progress Draft status Open the newly created plan and then update it with the clients most recent data Note Navigation may be slightly different in progress plans For information about these differences search for Progress Plans in the application Help Go to the Results section Client Report page Select Start a New Report then choose desired reports Y Client Information Client List Client Information y Plan Management Plan List Modules Assumptions v Enter Financial Data Net Worth Cash How Strategies Insu
124. ining education goals To define an education goal follow these steps 1 Go to the Set Goals Education page Education Objectives ADD EDUCATION OBJECTIVE Description EJ Member Start Age Year Infl Add Annual Cost Years Projected Cost Actions University Education Wayne v 40 2016 3 2 00 10 550 o 4 sa7 7as 2 R Goal Funding Select Plan Data for Reports Set Goals section Education category Education page Level 2 Plan 2 Tocreate a new goal under Education Objectives click Add Education Objective and then enter the details of the goal 3 Tosearch the Peterson s Undergraduate Database Data source Peterson s Databases copyright 2011 Peterson s a division of Thomson Learning All rights reserved for post secondary education expenses click Education Calculator 4 Under Education Search Criteria select the province in which the school is located and or enter the school name and then click Search Search Education Costs Use this page to search the Peterson s Undergraduate Database for university college specific education expenses If the Education Search Criteria School Name Province hi i Ontario v Search Results School Name City gt Province Expense Options 9 Emmanuel Bible College Kitchener ON Amounts include required fees Heritage College and Seminary Cambridge ON Tuition 10 550 Master s College and Seminary P
125. ion Details 0 Total Value of Shares Corporate Year End Description EJ Wayne Jan Other Province of Incorporation Province of Taxation information only Private Corporation 0 0 0 Northwest Territories Y Northwest Territories Dec 31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Add any life insurance policies to which the specific private corporation is paying premiums Life Insurance ADD LIFE INSURANCE v Click the Add Life Insurance button to create a new row Private Corporation Details dialog box Life Insurance tab 2 Click Life Insurance and then select a policy type 3 Inthe new data entry row enter the life insurance policy details 4 To enter further details click 2P Page 52 of 172 NaviPlan User Manual Entering Client Data Entering shareholder contributions to the private corporation On the Contributions tab you can enter transactions from shareholders to the private corporation These funds will be added to the private corporation s cash flow All funds associated with a client will be removed from that client s cash flow To enter contributions to the private corporation follow these steps 1 Gotothe Contributions tab Private Corporation Details 0 Total Value of Shares Corporate Year End Description EJ Wayne Jan Other Province of Incorporation Province of Taxation informati
126. is Level 2 ongoing income needs 125 survivor income goals Level 2 113 123 annual income needs 118 asset availability 120 127 NaviPlan User Manual Entering Client Data Page 171 of 172 NaviPlan User Manual Entering Client Data assumptions 114 123 Goal and Expense Analysis 115 123 Income Coverage Analysis 118 124 lump sum needs 118 124 125 ongoing expenses 115 124 survivor sincome 119 survivor income insurance goals Level 2 113 tax credits entering Level 2 19 tax deductions entering Level 2 19 tax details 84 templates for reports saving 158 TFSA contributions historical 12 14 Page 172 of 172
127. ivor s cash flow needs Adjust the to Coverfor major purchase goals to be retained in the analysis If 0 is entered for items listed under Major Purchase Goals the assumption is that the savings and needs required for those goals are not included as part of the survivor s cash flow needs Use this page to enter lump sum needs in the event of a survivorship situation such as a funeral cost Major Purchase Goals to Description Amount Target Date Cover Additional Lump Sum Needs ADD LUMP SUM NEED Click the Add Lump Sum Need button to create a new row Set Goals section Survivor Income category Client Co client Objectives page Lump Sum Needs tab Level 2 Plan Income Coverage Analysis method selected 8 Under Pay Off Outstanding Liabilities select any existing loans that will be paid off by insurance proceeds For each loan that is not selected NaviPlan assumes that the payments continue and will be included as part of the survivor s cash flow Note This option is only available if liabilities exist in the plan and if on the Enter Financial Data section Net Worth category Assets Liabilities Liability Details dialog box the Payoff Options at Death selection is Transfer to survivor or Payoff at first death from estate This option is only available if liabilities exist in the plan 9 Enter the percentage of any future major purchase goals that will be paid for in the event of death Note This option
128. jectives 10 To allocate an account to the education goal or to view or edit account distribution for all plan goals click Goal Funding For more information see Allocating accounts to goals on page 107 11 Click the Select Plan Data for Reports button check any education goals you wish to include in your reporting Select Plan Data for Reports Alternative Scenarios Education Goals Major Purchase Goals Include in Reports Description Member End Date Projected Cost ivi University Education Wayne Jan 12019 47 745 SELECT ALL SELECT NONE Select Plan Data for Reports page All accounts allocated toward the education goal appear on the Education page under Education Accounts The market value of each account displayed reflects the market value for the account and not the actual amount allocated to the education goal Any accounts not allocated to a goal appear under Unassigned Accounts Clicking the links expands or collapses the information Page 102 of 172 NaviPlan User Manual Entering Client Data Defining major purchase goals A major purchase is any large expense for which your clients need to save money For example a sailboat a new roof for the house or a wedding are all major purchases To define a major purchase goal follow these steps 1 Go to the Set Goals Major Purchase page 2 To create a new major purchase goal click Add Major Purchase Objective and then select an objective type
129. l Entering Client Data Entering regular or lump sum incomes Use the following procedure to enter the clients annual pre retirement income If the clients are already retired their income should be entered on the Set Goals Retirement page To enter a regular or lump sum pre retirement income follow these steps 1 Go to the Enter Financial Data Cash Flow page When you create a new plan NaviPlan creates default entries for salaries and bonuses that appear under Incomes Any incomes that are entered on the Retirement page will also appear under Incomes The clients sources of income such as employment income bonuses and inheritances can be entered here Do not include investment income from assets as NaviPlan calculates this income based on the data entered on the Enter Financial Data Net Worth Accounts page Incomes Description Member Amount Actions Salary Susan v 0 lyr sz R Bonus Susan v 0 yr 2 4 Enter Financial Data section Cash Flow category Cash Flow page 3 If applicable select the family member receiving the income and then enter the annual income amount Incomes that continue into retirement years appear on the Set Goals Retirement page 4 To enter additional details for or to change the frequency of an existing income click 2 for that income Income Details 2 Description Member Income Type Salary OS Robert v Sa
130. l Actions Salary Salary RA 50 Jan 12015 aa Ret Co cliem m 0 00 e Set Goals section Survivor Income category Client Co client Objectives page Additional Annual Incometab Level 2 Plan Goal and Expense Analysis method selected 10 Once all ongoing incomes are entered go to the Lump Sum Needs tab Assumptions Lump Sum Needs Annual Income Needs Survivor s Income Asset Availability Select the outstanding liabilities that are to be paid in full upon death If items listed under Pay Of Outstanding Liabilities are not selected those regular payments will continue and be part ofthe survivor s cash flow needs Adjust the ro Coverfor major purchase goals to be retained in the analysis If 0 is entered for items listed under Major Purchase Goals the assumption is that the savings and needs required for those goals are notincluded as part ofthe survivor s cash flow needs Use this page to enter lump sum needs in the event of a survivorship situation such as a funeral cost Major Purchase Goals to Description Amount Target Date Cover Additional Lump Sum Needs ADD LUM Click the Add Lump Sum Need button to create a new row Set Goals section Survivor Income category Client Co client Objectives page Lump Sum Needs tab Level 2 Plan Goal and Expense Analysis method selected Page 116 of 172 NaviPlan User Manual Entering Client Data 11 Under Pay Off Outstanding Liabiliti
131. l be covered in the event of death Enter a unique description for each expense and then enter all appropriate data 8 To indicate when accounts are to be made available for survivor and estate needs complete the procedure Assigning asset availability if both clients die on the next page Page 126 of 172 NaviPlan User Manual Entering Client Data Assigning asset availability if both clients die On the Asset Availability tab for either the Goal and Expense Analysis method or the Income Coverage Analysis method you can indicate when assets are to be made available 1 Go to the Asset Availability tab Assumptions Lump Sum Needs OngoingIncome Needs Asset Availability Use this page to control asset availability for survivor needs Investment Accounts Survivor Needs Account Name Available Not Available New account Robert RRSP O Lifestyle Assets Survivor Needs Asset Name Available Not Available Principal Residence Robert Lifestyle O Education Specific Accounts The current plan does not have any education specific accounts defined Set Goals section Survivor Income category Both Objectives page Asset Availability tab Level 2 Plan Detailed Tax method 2 Under Investment Accounts andLifestyle Assets Survivor Needs select one of the following options for each account or asset m Available if the account is available for survivor needs immediately following the death of both clie
132. l outstanding liabilities select the Pay Off Outstanding Liabilities option for the client and or co client Page 111 of 172 NaviPlan User Manual Entering Client Data Long term care insurance Level 1 1 Go to the Set Goals Long term Care page Long term Care Select the appropriate check boxes below to activate the insurance analysis Enter details for the applicable insurance objectives Long term Care Insurance Analysis to Include v If Robert enters LTC Z If Sarah enters LTC Objectives Percentage of lifestyle and medical expenses to cover during 100 Robert Sarah Frequency Additional LTC Expenses 0 0 Weekly v Set Goals section Long term Care category Long term Care page Level 1 Plan 2 Under Long term Care Insurance Analysis to Include select the appropriate If lt client co client gt enters LTC option to model the scenario for the client or co client m The age at which long term care begins is based on the age of death set on the Set Goals section Retirement category Retirement page By default the clientis assumed to require long term care for a period of four years starting on January 1 of the year in which the client turns age 80 and the client is assumed to die at the end of this period 2 Under Objectives enter the percentage of lifestyle and medical expenses that is expected to continue when the period of long term care begins The default is 100
133. lan Benefit Formula method Page 71 of 172 oor Pw 10 11 12 13 14 15 NaviPlan User Manual Entering Client Data In the Description field enter a unique name for the pension From the Member menu select the pension owner Enter either the Benefits Start Age or the Benefits Start Date Enter the percentage of pension benefits to be paid to the surviving spouse when the pension owner becomes deceased The Benefit Reduction for Suvivor Coverage field becomes accessible Enter the percentage in this field If the pension is based on an income under Linked Incomes select the option s for the appropriate income s These options only appear if incomes are entered in the plan Enter information from the available pension documents Level 2 gt f a pension is linked to a salary and if under Benefit Payout Options the Method of Payout is set to Life Income the benefits that will be paid in the first year appear under Estimated Annual Benefit when Benefits Begin Click the Benefit Payout Options link Additional fields appear From the Method of Payout menu select Life Income or Lump Sum m If you selected Lump Sum from the Transfer Payout to Locked in Registered Asset and Registered Asset menus select an existing asset or create a new asset and then enter the percentage amount to transfer to each asset type The default name for each new asset is Transfer From lt pension name gt The newly created assets
134. lan or when expenses are understated m When the Assume surplus is spent option is selected NaviPlan projects the cash flow that would have occurred in pre retirement if neither client had become disabled Any pre retirement surpluses resulting from that projection become additional pre retirement disability expenses in the years they are projected to occur The Percentage of lifestyle expenses to cover value also applies to these expenses If you anticipate additional annual expenses under Additional Annual Expenses click Add Additional Expense and then enter any anticipated expenses during disability in the fields that appear If you anticipate additional annual incomes go to the Additional Annual Income tab click Add Annual Income and then enter any anticipated incomes in the fields that appear Assumptions OngoingExpenses Additional Annual Income Lump Sum Needs Asset Availability Enter additional annual income that applies during disability Additional Annual Income ADD ANNUAL INCOME Click the Add Annual Income button to create a new row Set Goals section Disability Income category Client Co client Objectives page Additional Annual Income tab Level 2 Plan Goal and Expense Analysis method selected 8 Once all ongoing incomes are entered go to the Lump Sum Needs tab Page 130 of 172 NaviPlan User Manual Entering Client Data Assumptions OngoingExpenses Additional Annual Income Lump Sum Nee
135. lary Ly Annual Amount Frequency Amount per Period 0 Monthly v 0 Start Date End Date Infl Add l Jan 12013 m Ret Owner a v 0 00 Other Options Linked Defined Benefit Pension No Defined Benefit j Exclude from group disability insurance O Exclude from savings strategies Eligible dividends Business income Elect to pay EI premium ADDINCOME v Eaa NextEnty gt CANCEL Income Details dialog box Level 2 Plan Page 65 of 172 NaviPlan User Manual Entering Client Data a If you are entering a salary bonus or self employed income type that is linked to a defined benefit pension or is excluded from either group disability insurance or savings strategies you can make the appropriate selections under Other Options If you are entering dividend income the Eligible Dividends option is available If you are entering self employment income the Elect to pay El premium option is available m From the Income Details dialog box you can add another income by clicking Add Income and then selecting New Income or Copy of Current if you select Copy of Current NaviPlan creates a copy of the existing income You can view or edit other incomes by clicking Previous Entry or Next Entry Page 66 of 172 NaviPlan User Manual Entering Client Data Establishing CPP QPP and OAS details CPP QPP and OAS benefits can be calculated or removed from plan calculations To exclude CPP QPP and or OAS benefits from the plan
136. lculation methods 5 Under Reserve asset for Emergency Fund until indicate how long the emergency fund assets are to be reserved m To have NaviPlan reserve the assets for emergency use only until retirement select Retirement At retirement NaviPlan transfers use of these assets to the retirement goal m To have NaviPlan reserve the assets for emergency use for the duration of the plan select End of Plan These assets are not available for deficit coverage or to fund any other goal 6 To edit the accounts funding this goal click Goal Funding For more information Allocating accounts to goals on the next page Note Registered accounts cannot fund an emergency fund All accounts allocated toward the emergency fund goal appear on the Emergency Fund page under Emergency Fund Accounts The market value of each account displayed reflects the market value for the account and not the actual amount allocated to the major purchase goal Any accounts not allocated to a goal appear under Unassigned Accounts Page 106 of 172 NaviPlan User Manual Entering Client Data Allocating accounts to goals To assign accounts to fund specific goals or to view account distribution for all goals follow these steps 1 On the lt Retirement Education Major Purchase Emergency Fund gt page click Goal Funding Your clients registered accounts with the exception of RESPs are automatically assigned to fund the retirement goal but can also fund educa
137. lect either Medical To change the policy type from the Policy Type menu select another option If applicable enter the benefit amount and monthly premium of the listed insurance policies To enter additional details for an existing long term care or critical illness insurance policy click 4 for that Long term Care Insurance Details Description Company LTC Insurance Insured Effective Date David v jan12013 Benefits Payable Benefit Before Benefit During LTC Indexed Amount Frequency Infl Add l 0 Weekly x Applicable Period Waiting Period Benefit Period after starting LTC after starting LTC 90 Days E Premiums Payer Amount Frequency Cease Premiums On Date David 0 Monthly v o Death Owner En ADD LTCINSURANCE v 4 Previous Entry Next Entry gt Long term Care Insurance Details dialog box Level 2 Plan coca Page 90 of 172 NaviPlan User Manual Entering Client Data Critical Illness Insurance Details dialog box Level 2 Plan Critical Illness Insurance Details Details Description Policy Type Insured Owner Cl Insurance Cash to Insured Coverage v Robert Y Robert NA Company Policy Number Effective Date Dec312012 Benefit Details Benefit Taxable o RS o s0 100 00 Premiums Amount Frequency Payer Ceaseat Age Cease on Date 0 Monthly v J Rob
138. lity if one client dies On the Asset Availability tab for either the Goal and Expense Analysis method or the Income Coverage Analysis method you can indicate when assets are to be made available during the survivorship period 1 Go to the Asset Availability tab Assumptions Lump Sum Needs Ongoing Income Needs Asset Availability Use this page to control asset availability for survivor needs Investment Accounts Survivor Needs Account Name Available Not Available New account Robert RRSP O Lifestyle Assets Survivor Needs Asset Name Available Not Available Principal Residence Robert Lifestyle O o Education Specific Accounts The current plan does not have any education specific accounts defined Goals section Survivor Income category Client Co client Objectives page Asset Availability tab Level 2 Plan Goal and Expense Analysis method selected 2 Under Investment Accounts Survivor Needs select one of the following options for each account m Available Immediately if the account is available for survivor needs immediately following the death of the client m Available Starting At Retirement if the account is available for survivor needs upon the survivor s retirement Not Available if the account is not available for survivor needs Note If you select Available Immediately or Available Starting At Retirement the clients accounts are redeemed as required to cover the survivor
139. lternative investor profile you want to use for the selected period Retirement goal only You must select an asset mix other than All Retirement Accounts if you want to override the clients investment profile 6 Select the asset mix you would like to review or override The current asset mix graph changes depending on the selected asset mix The suggested asset mix graph is based on your clients goal investment profile 7 Scroll down to the bottom of the profile If applicable you can modify the asset mix in this proposed portfolio for the selected retirement goal by clicking Customize Asset Mix and then selecting either the Weightings option or the Optimize option 8 Use the Weightings option to manually adjust the asset class weightings of the portfolio for all or selected accounts For more detailed instructions see Editing asset class weightings Level 2 on page 57 9 Use the Optimize option to use the Ibbotson Mean Variance Optimizer to generate a new portfolio based on an efficient frontier graph For more detailed instructions see Using the Optimize calculation on page T Note The proposed portfolio is only modified for the goal not for the entire plan Also for a retirement goal the proposed portfolio is only modified for the selected period To identify the accounts that will fund the clients goal see Allocating accounts to goals on page 107 Page 100 of 172 NaviPlan User Manual Entering Client Data Def
140. mulated Age Year Premium Death Benefit Estimated CSV Withdrawals Liabilities Liability H 43 203 0 0 0 0 0 0 44 2014 0 0 0 0 0 0 45 205 0 0 0 0 0 0 46 2016 0 0 0 0 0 0 47 2017 0 0 0 0 0 0 48 2018 0 0 0 0 0 0 49 2019 0 0 0 0 0 0 50 2020 0 0 0 0 0 0 51 2021 0 0 0 0 0 0 52 2022 0 0 0 0 0 0 53 2023 0 0 0 0 0 0 54 2024 0 0 0 0 0 0 55 2025 0 0 0 0 0 0 2013 2025 2026 2038 2039 2051 2052 2064 2065 2077 2078 2090 2091 2103 2104 2112 Fill Values Start End Start Base Increase Period Column to Fill Year Year Value Rate Rate By years Modal Premium 2013 2112 0 0 00 0 00 1 CLEAR COLUMN VALUES FILL ADD LIFE INSURANCE v SATA METIA OK CANCEL Life Insurance Details dialog box Future Values tab Level 2 Plan Detailed Tax method Page 87 of 172 NaviPlan User Manual Entering Client Data 4 Select Modify the Calculated Values and then click OK to the message that appears 5 To change future values for specific years enter updated values in the fields for those years OR To change future values for multiple years use the expanded Fill Values section where you can quickly assign future values to multiple years as follows a Selecta column type that you want to modify from the Column to Fill menu b Enter the Start Year and End Year dates to set the range of years that will include modifications c
141. nan 42 Converting RRSPs or DPSPs to RRIFS 2 2 2 2 eee eee eee ce cece eee cece cece cece e cece cece eeeeececeeeeees 42 Setting Up RPPs LES ana URAS 222 22c22sco4t tenet hk seo tt etter ens EEE On ee AS hen oo ti tad So 42 AAA A 43 Entering fixed income streams __ 22 2 2 22sec ee cece cece cece cece cece cece eecteecseeceeeceeeseeeseeeeees 45 Entering guaranteed withdrawal benefit plans 02 000 022 c eee cece cee cee cee cee eee e eee eee 45 Entering payout options for guaranteed withdrawal benefits 0 0002 22222 c eee eee eee eee eee eee 46 Entering savings strategies for guaranteed withdrawal benefits 0 00000 02 2 eee eee eee eee eee eee 47 Entering private corporations nn 48 Establishing the private corporation s share structure 00 0 00222 e eee ce ee cee cee cee cece eee eeee 48 Entering private corporations historical data and outstanding shareholder loans 22 22 2 49 Entering private corporation investment accounts and subaccounts 22 022 202 e ee eee eee eee eee 50 Entering other private corporation assets 0 000200000 cece eee cece cece ec ee cece eee e cece ee ceeeeseeceeseeeee 51 Page 31 of 172 NaviPlan User Manual Entering Client Data Adding private corporation life insurance policies ooocccccccccccccccccccccccccccncccocccncccnccnnccnoo 52 Entering shareholder contributions to the private corporation 2 22
142. nd their surplus make sure to transfer any remaining cash flow surplus into an account To enter surplus strategies follow these steps 1 Go to the Enter Financial Data Strategies Surplus page 2 If the clients will be saving some or all of the cash flow surplus from the Choose Account menu under Surplus Savings select the account or annuity to which you want to save surplus funds and then click Add Surplus Savings Strategy Page 82 of 172 NaviPlan User Manual Entering Client Data Savings Debt Modification Redemptions Surplus Define surplus savings and expense strategies By default NaviPlan will allocate surplus funds to savings before using them to pay off surplus expenses Eme T Surplus Savings New account Join Non Reg v FORTIES VNS Direct Surplus To of Surplus Start Year End Year Actions New account Joint Non Reg 100 00 2013 f J Ret 1st 3 x Surplus Expenses ADD SURPLUS EXPENSE of Start Description EJ Owner Surplus Year End Year Actions Surplus Expense Robert v 0 00 2013 m J Death Client x To view or edit how surplus funds are directed click Surplus Cash Usage Surplus Cash Usage Enter Financial Data section Strategies category Surplus page Level 2 Plan Detailed Tax method 3 Enter the percentage of surplus income the clients will save to the selected account and then enter the time frame for the strategy 4 Repeat steps
143. nged for specific goals such as survivor income and disability income Retirement goal reporting NaviPlan has detailed retirement reports for both the current and proposed plans The current plan reports are based on the clients current financial information entered primarily in the Enter Financial Data and Set Goals sections and show the clients their current progress towards their retirement goal All information in the plan except for What if scenarios is reported as part of the current plan in additional reports graphs and client reports In contrast the recommended or proposed plan reports reflect both the current plan information and the Recommended scenario information Page 94 of 172 NaviPlan User Manual Entering Client Data Defining retirement goals To define your clients retirement goals follow these steps 1 Gotothe Set Goals Retirement page Retirement Use this page to define the retirement goal This includes setting retirement objectives expenses and incomes To view and modify the order in which accounts are used for the retirement goal click Liquidation Strategies Objectives Calculate Retirement Expenses Enter the annual retirement expenses as a Robert Sarah P Age Date Age Date percentage ofthe current nee after tax income Retreat 92 Jan 2066 65 May2042 ip E E dd iad i 7 O percentage ofthe current lifestyle expenses Life Expectancy 117 2091 90 2067 e
144. nt select either Current or Recommended and then go to the Reports tab a m PDF TiM Overview Problems Questions Opportunities Reports Select a report Introduction eal To review the reports listed select an option from the list above The TFSA report contains information specific to TFSAs Here you will find useful analysis and recommendations regarding TFSA contributions unused contribution room over contributions etc The RRSP report contains information specific to RRSPs Here you will find useful analysis and recommendations regarding RRSP contributions unused contribution room overcontributions etc The Cash Flow report contains information related to Pre Retrement surpluses and deficits This information is useful in determining the impact that the client s goals and associated savings plans will have on their cash flow You should be aware that the system is not designed to perform detailed cash flow analysis Please refer to the Cash Flow report for more details The Net Worth report contains information on the accumulation and or depletion of assets over time It displays both assets and liabilities and the net value or difference at the end of the current year The Action Plan report contains a summary of the Goals specified in the plan the current savings allocated to each goal and any additional savings that are required to achieve each goal as determined by the system based on the assumptions in the plan
145. nter your clients financial information into NaviPlan and set your plan assumptions before you can analyze the information and make recommendations Note This guide assumes that you have already used NaviPlan to create a client file and to open a Level 1 or Level 2 Plan For information about creating and managing client files see the NaviPlan User Manual Introduction NaviPlan bases its calculations on specific assumptions you define In this chapter Entering general assumptions nes 8 Changing economic factors ne 8 Setting annual account fees ns 9 Setting account reinvestment strategies _ 0 220 cee cece cee eee eee cence cnn 9 Setting lifestyle asset growth rates occ 10 Setting milestones Level I cn serra A A Mandel Sects 10 Setting milestones Level 2 2 02 22 l eee ce cece cee cece cece cece cece eee ceeeceecseesseeseeeseeeeees 11 Entering histonicaldata lt a A a het vee e s ag He dee eee ea lle sosa 12 Selecting a portfolio balancing method _ 2 22 22 cece eee eee cece cece ec eeecceeceeececeteeecerseees 16 Entering income tax rate assumptions Average Tax method 2 02222 e eee eee eee cece ec ceeceeeeee 18 Entering tax credits and deductions Level 2 Detailed Tax method 2 2 202202 2 eee eee eee ee eee eee eee 19 Setting asset allocation assumptions ccoo 20 Overview of predefined Asset Allocation 2 22 2 cece cece cece cece nec e cece ce ceeceeceeseeeeseees 20 Overview of User D
146. nts The account is redeemed as required to cover the survivor s income needs m Not Available if the account is not available for survivor needs The Education Specific Accounts section is for information purposes only and cannot be modified The list includes RESPs Disability income goals Level 2 When aclient is currently disabled if you are using the Detailed Tax method you can indicate this on the Plan Management Assumptions Milestones page In this case a link to the Milestones page appears on the Set Goals Disability Income Client Co client Objectives page To enter data and assess disability insurance needs for the client or co client follow these steps 1 Go to the Set Goals section Disability Income Client Co client Objectives page 2 To assess insurance needs under Objectives select If lt client co client gt is disabled Page 127 of 172 NaviPlan User Manual Entering Client Data Assumptions Lump Sum Needs Annual Income Needs Income Available Asset Availability Adjust Milestones Robert Sarah Override Age Date Age Date Disability Retirement Age LU 92 Jan 2066 65 May 2042 Disability Life Expectancy amp 117 2091 90 2067 Analyze Disability To 92 2066 ROR on Disability Insurance Proceeds Surpluses amp Liquidations Capital Deferred Total Interest Dividends Gains Growth Pre Retirement 6 00 1 50 1 50 1 50 1 50 Retirement
147. o account Note To populate the life expectancy fields using actuarial data click the life expectancy calculator El next to the field To view the Life Expectancy Graph click Life Expectancy Graph Page 11 of 172 NaviPlan User Manual Entering Client Data Entering historical data The Plan Management Assumptions Historical Data page varies depending on the plan level and the income tax method selected for the plan Entering registered plan contribution data Level 1 1 Go to the Plan Management Assumptions Historical Data page RRSP Contributions TFSAContributions RESP Contributions RRSP Contributions Wayne Jan 2014 Earned Income 0 0 2014 Pension Adjustment 0 0 RRSP Overcontribution Balance 0 0 Unused RRSP Deduction Limit at End of 2014 0 0 Home Buyers Plan RRSP Repayments Wayne Jan HBP Balance Owing 0 0 Years Left to Repay 0 0 Begin Repayments In Y 2015 2015 Plan Management section Assumptions category Historical Data page RRSP Contributions tab Level 1 Plan Detailed Tax method 2 Under RRSP Contributions enter RRSP contribution information for the applicable family member s 3 Under Home Buyers Plan RRSP Repayments enter the outstanding RRSP balance used for the purchase of a house in the HBP Balance Owing field If the value is left at 0 NaviPlan will assume that no Home Buyers Plan RRSP repayment is necessa
148. o is entered in the Payable to Survivor field and the pension owner reaches the age entered in the Earliest Retirement Age field before death m Survivor benefits are only paid out if a number larger than zero is entered in the Payable to Survivor field and the pension owner reaches the age entered in the Earliest Retirement Age field before death If the Benefits Vested Survivor Disability Analysis option is selected the Earliest Retirement Age Survivor Analysis field is accessible Enter the age the pension owner must attain in order for survivor benefits to be payable if the pension owner dies Enter the remaining details of the pension Go to the Future Benefits tab To override the displayed items select Modify the Calculated Values and then enter the benefits you want to use Page 70 of 172 NaviPlan User Manual Entering Client Data Instead of entering an amount for each year on the tab you can use the Fill Values feature to fill in the amounts automatically To use this feature follow these steps Click the Fill Values link PLM E Click Fill Entering a benefit formula pension From the Column to Fill menu select the column of values you want to fill Enter the criteria you want NaviPlan to use to calculate the amounts To enter a Benefit Formula pension income follow these steps 1 Gotothe Enter Financial Data Cash Flow page Defined Benefit Pensions Description Member Type Defin
149. o the retirement goal If the Asset Allocation module is selected on the Plan Management section Modules category Modules page click Asset Allocation For more information see Overriding the proposed investor profile for a goal Level 2 Plans on page 99 Note If you are using user defined asset allocation default asset classes and investment profiles must first be created for all future plans in Settings or for the individual plan in the Plan Management Asset Allocation category Page 95 of 172 NaviPlan User Manual Entering Client Data To model retirement expenses follow these steps 1 Under Calculate Retirement Expenses do one of the following To calculate the retirement expense based on Total annual after tax salaries Current annual lifestyle expenses A specific annual amount Do this Select the percentage of the current estimated after tax salary option and then enter the percentage of the current estimated after tax salary the clients will want to receive during retirement Select the percentage of the current lifestyle expenses option and then enter the percentage of current lifestyle expenses you expect the clients to have during retirement Select the specific amount option and then enter the amount the clients want to receive annually during retirement 2 Toadd a calculated retirement expense to the plan click Add to Retirement Expenses 3 Under Retirement Expenses enter
150. o to the General tab and enter the carryover alternative minimum tax AMT amount that can be used this year and that has not been used in a previous year General RRSP Contributions TFSA Contributions RESP Contributions Capital Loss Carryovers 2015 Start of Year Balances Wayne Jan Alternative Minimum Tax Carryover 0 0 Plan Management section Assumptions category Historical Data page General tab Level 2 Plan Detailed Tax method 3 On the RRSP Contributions tab enter RRSP contribution information for the applicable family member s 4 Under Home Buyers Plan RRSP Repayments enter the outstanding RRSP balance used for the purchase of a house in the HBP Balance Owing field If the value is left at 0 NaviPlan will assume that no Home Buyers Plan RRSP repayment is necessary Enter the number of years remaining for repayment in the Years Left to Repay field Enter the year in which the repayments are to begin General RRSP Contributions TFSAContributions RESP Contributions Capital Loss Carryovers 2015 RRSP Contributions 2014 Earned Income 2014 Pension Adjustment RRSP Overcontribution Balance Unused RRSP Deduction Limit at End of 2014 Home Buyers Plan RRSP Repayments Wayne HBP Balance Owing Years Left to Repay Begin Repayments In Plan Management section Assumptions category Historical Data page RRSP Contributions tab Level 2 Plan Detailed Tax meth
151. ocati and asset allocation have on their portfolio returns The clients portfolio is calculated ocation based on their existing accounts and related holdings Financial This report provides an overview of your clients current financial situation with Needs special emphasis on their retirement goal Typically this report is used when the Summary recommended plan has been finalized as the final presentation to the clients This report is useful to clients who are nearing or at retirement and provides an in depth review of the plan retirement period and the distribution of income the Retirement 3 fad Distributi clients may expect in retirement The report focuses on the apparent risks in the istribution s clients current plan and how those risks have been reduced by strategies ummar E y implemented in the proposed plan It also shows a review of the fixed and total incomes as well as expenses during retirement This report provides a comprehensive view of the entire plan including a Financial summary of the clients needs and objectives the financial assumptions used in Needs preparing the financial analysis as well as additional strategies that could be A implemented to achieve the objectives The report includes summaries of the Analysis various analyses performed and recommendations and strategies that could be used to meet the clients objectives A synopsis of the analysis data is included Page 151 of 172 NaviPlan
152. od 5 On the TFSA Contributions tab enter TFSA contribution information for the applicable family member s Page 14 of 172 NaviPlan User Manual Entering Client Data General RRSP Contributions TFSA Contributions RESP Contributions Capital Loss Carryovers 2015 TFSA Contributions Wayne Jan TFSA Overcontribution Balance 0 0 Unused TFSA Contribution Room at End of 2014 0 0 Plan Management section Assumptions category Historical Data page TFSA contributions tab Level 2 Plan Detailed Tax method 6 On the RESP Contributions tab enter RESP contribution information for the applicable family member s Net incomes must be entered for CESG purposes General RRSP Contributions TFSA Contributions RESP Contributions Capital Loss Carryovers 2015 RESP Contributions Clients Dependant As of Dec 31st 2014 where the beneficiary is Wayne Jan Stevie Total RESP Contributions from All Subscribers 0 0 CESG eligibility carry forward 0 0 Total CESG Payment Received 0 50 2014 Net Income s0 Net incomes must be entered for CESG purposes Plan Management section Assumptions category Historical Data page RESP Contributions tab Level 2 Plan Detailed Tax method 7 On the Capital Loss Carryovers tab enter the unapplied net capital loss for the applicable time periods and for the applicable family member s m Enter
153. ofessional advice and if any such advice is required the services of acompetent professional person should be obtained Advicent has engaged Ibbotson Associates Inc awholly owned subsidiary of Morningstar Inc to develop proprietary asset allocation tools for educational purposes Ibbotson has granted to Advicent a licence for use thereof Canadian version 7 23 2015 NaviPlan User Manual Entering Client Data Contents CONteNtS uisecciosiionincror riada rr ll iii llas pen 22 i NaviPlan RESOUnGES 2 1 ccccctcccesiceotett r r E E lh liacectedeascdedehed a SS vi Chapter 2 Entering plan assumptions _ 2 2 22 2 2 2 conce 7 Entering general assumptions nes 8 Changing economic factors 2 22 22 occ e eee ec e ee ee cece cece eee e cee eeceeceeeeeeeseeseeeeeees 8 Setting annual account fees occ eee eee e eee ee cece ceecceeseecseeceeesceeceeeees 9 Setting account reinvestment strategies 22 20 2222 cece cee cece ee ee ee cee cece cece eeeee 9 Setting lifestyle asset growth rates occ nes 10 Setting milestones Level 1 2 2 l ole cee cece ce eee ec eee cnn nr ninos 10 Setting milestones Level coo tr ti cda T1 Entering historical data ooo iane cece a ie nn 12 Entering registered plan contribution data Level 1 2 22 2 eee cece cee eee e ec ceeeeeeee 12 Entering registered plan contribution data Level 2 022 22 eee eee eee eee eee eee ecceeeeeeees 14 Selecting a portfolio balancing method
154. on 3 Member Start Age Start Date to Survivor Linked Incomes Defined Benefit Pension Rober v 92 Ret Client m 0 O Salary of Final Salary 70 0 Commuted Est Benefit Amount Gn today s Value 0 so Maximum Infl Add Total Indexing w 175 475 3 00 Benefit Payout Options Benefits Vested Earliest Retirement Age Method of Payout Sunvvor Disabity Analysis Survivor Analysis Life Income x a 55 Transfer Payout To Account Locked in Registered Asset Dees Portion Registered Asset N A A 0 N A 4 Previous Enoy Next Enoy gt Defined Benefit Pension Details dialog box Details tab Level 2 Plan Estimate Benefit method Page 69 of 172 So SS 10 11 12 13 14 15 16 NaviPlan User Manual Entering Client Data In the Description field enter a unique name for the pension From the Member menu select the pension owner Enter either the Benefits Start Age or the Benefits Start Date Enter the percentage of pension benefits to be paid to the surviving spouse when the pension owner becomes deceased NaviPlan does not calculate any discounts if this election is chosen If the pension is based on an income under Linked Incomes select the option s for the appropriate income s These options only appear if incomes are entered in the plan Enter either a percentage of the pension owner s final salary in the of Final Salary field or the estimated
155. on only Private Corporation 0 0 0 Northwest Territories di Northwest Territories v Dec 31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Enter any anticipated future contributions to the private corporation Inter Company Dividends Received ADD INTER COMPANY DIVIDEND RECEIVED Click the Add Inter Company Dividend Received button to create a new row Shareholder Loans to the Private Corporation ADD SHAREHOLDER LOAN Click the Add Shareholder Loan button to create a new row Share Purchases Click the Add Share Purchase button to create a new row Private Corporations Details dialog box Contributions tab 2 Toadd an inter company dividend click Add Inter Company Dividend Received To add a shareholder loan click Add Shareholder Loan To add a share purchase click Add Share Purchase 3 Enter the details of the transaction you added For specific field details see the Help Establishing withdrawals from a private corporation Share redemptions manual dividend distributions and loan repayments to the shareholder from the private corporation can also be entered in NaviPlan These withdrawals can be used to client fund goals by directing a withdrawal s after tax proceeds to the account funding a particular goal Any residual amounts remaining in the account after the specific goal has been fully funded will be used
156. on rate enter a different percentage in the Add I field Note The Infl option is not accessible when Redeem All or Lump Sum is selected or a percentage of the account is entered Page 80 of 172 NaviPlan User Manual Entering Client Data Setting the deficit coverage order Detailed Tax method You can select the order in which accounts and account types are redeemed to cover pre retirement deficits To specify the pre retirement deficit coverage order follow these steps 1 Go to the Enter Financial Data Strategies Deficit Coverage page 2 Under Pre Retirement Deficit Coverage Order select Redeem from accounts to cover deficits in the pre retirement period 3 To specify the order in which account types will be redeemed select an option from the menu OR To specify the order in which specific accounts will be redeemed select View Modify the deficit coverage order and then adjust the liquidation order by moving accounts up or down in the list using the Move Up or Move Down buttons Page 81 of 172 NaviPlan User Manual Entering Client Data Entering surplus strategies In NaviPlan a cash flow surplus occurs when total cash inflows exceed total cash outflows as of December 31 of a particular year In years when a surplus exists savings and expense strategies are available By default NaviPlan allocates to surplus savings strategies before allocating to surplus expense strategies Note You can only create surpl
157. one or more financial planning strategies You can open the Planning Assistant from the Quick Actions menu while working in any plan Opening the Planning Assistant To open the Planning Assistant follow these steps 1 From the Quick Actions menu select Planning Assistant Planning Assistant seng Cores T Overview Problems Questions Opportunities Reports The Planning Assistant is designed to assist you in analyzing the client s plan It contains information the system has generated by projecting the plan into the future and extracting the relevant details This information is dynamically generated by the system and may vary from plan to plan This facility is organized into the following categories Problems 0 possible problems of which you should be aware Questions 5 questionable strategies or data values Opportunities 0 possible opportunities on which you may capitalize Reports 4 select one of the options to review the reports listed The TFSA report contains information specific to TFSAs Here you wil find useful analysis and recommendations regarding TFSA contributions unused contribution room over contributions etc The RRSP report contains information specific to RRSPs Here you wil find useful analysis and recommendations regarding RRSP contributions unused contribution room overcontributions etc The Cash Flow report contains information related to Are Retirement surpluses and deficits This information is useful
158. or guaranteed withdrawal benefits Savings strategies can be set up either when entering a guaranteed withdrawal benefit plan or at a later time To define regular savings or contributions toward a guaranteed withdrawal benefit plan follow these steps 1 Gotothe Enter Financial Data Net Worth Annuities page 2 Under Guaranteed Withdrawal Benefits click for the appropriate plan 3 Go to the Savings Strategy tab 4 Click Add Savings Strategy Savings Strategy Amount or of Salary Frequency Start Date End Date Infl Add Actions f T 0 00 Monthly v Jan12014 mm Ret Ist m 0 00 e Guaranteed Withdrawal Benefit Details dialog box Savings Strategy tab 5 Enter either the dollar amount or percentage of income to be contributed along with the Frequency of the contribution m Ensure dollar values under 25 are entered with a dollar sign or they are assumed to be percentages m For certain registered annuities to have the employee contribute the maximum amount as the federal limit increases enter max in the Amount field 6 Enter the Start Date and the End Date of the strategy 7 To index the strategy for inflation select the Infl option To index by an amount greater or less than the default inflation rate enter a different percentage in the Add I field Note The Infl option is not accessible when a percentage of salary is entered Page 47 of 172 NaviPlan User Manual
159. orts can take between a few seconds to a few minutes Each time you click the Generate button for a report NaviPlan creates a request in the Client Report Monitor and generates the report You can view all requested and generated reports only those reports with a Completed status can be opened The Client Report Monitor is available from all the following areas m Quick Actions menu Reports m Results Client Report page a Workflow Status page To use the Client Report Monitor follow these steps 1 Generate a client or progress report OR From the Quick Actions Reports menu select Client Report Monitor 2 Do one of the following To Do this List all reports for which you have Clear the Show only reports for this plan option access i Click the link for a report with the Completed status The report View a complete opens in the format specified under System Settings Report repor Format Click 9 for the applicable report or click Delete All to delete all listed reports and then click OK Note If you close the Client Report Monitor while a report is generating the report will continue to process while you work in other areas of NaviPlan If needed you can generate additional reports while other reports are being processed NaviPlan generates each report independently Page 155 of 172 NaviPlan User Manual Entering Client Data Adding notes for your own personal use In NaviPlan you c
160. ow If non registered accounts or TFSAs owned by the client or co client that are linked to an education or major purchase goal provide more funds than are required by that goal the excess is used to fund the retirement goal Non registered accounts owned by dependants are excluded from funding the retirement goal 7 NaviPlan adds the clients other scheduled cash outflows from strategies entered in the Enter Financial Data Strategies category and reinvestment of income from assets Clients current year cash flow surplus or deficit Calculates the clients current year net cash flow cash inflows minus cash outflows If the cash flow is positive surplus cash exists If the cash flow is negative a cash flow deficit exists Page 63 of 172 NaviPlan User Manual Entering Client Data Manages cash flow surpluses and deficits 1 Allocates any cash surplus according to the clients surplus cash strategies in the following order RRSP Maximizer strategies if the Constrained by cash flow option is used and then surplus savings strategies Each strategy is fully funded before any surplus cash is allocated to the next one in order You can view the clients cash flow surpluses deficits and asset redemptions in the Itemized Cash Flow Projection report Quick Actions Reports Cash Flow and the Accumulation and Redemption of Retirement Capital graph Quick Actions Reports Capital Accumulation and Redemption
161. penses or as a specific dollar amount Emergency Fund Goal Calculate target amount Average Monthly Target Multiple Fixed Expenses Amount Infl Add l 3 0 X 0 0 J 0 00 O Specify target amount TargetAmount Infi Add l 0 0 00 Reserve Asset Until Retirement End of Plan Goal Funding Unassigned Accounts 0 Unassigned Asset Class Description Account Type Owner Market Value Cost Base Unassigned Amount Weightings ROR Savings New account Non Registered Joint 0 0 100 0 Unclassified 0 00 Set Goals section Emergency Fund category Emergency Fund page Level 2 Plan 2 To calculate the funds required to cover expenses that occur over a specific period select Calculate target amount and then in the Multiple field enter the number of months to cover The required amount appears in the Target Amount field NaviPlan assumes that m Regular liability payments insurance premiums and fixed expenses are covered m Extra lump sum payments discretionary expenses savings strategies and income taxes are not covered Page 105 of 172 NaviPlan User Manual Entering Client Data 3 To create an emergency fund goal set at a fixed amount select Specify target amount and then enter the amount 4 If you want to index the emergency fund to inflation select the Infl option and then enter the percentage above or below inflation The inflation rate applies to both emergency fund ca
162. pension amount in today s dollars in the Est Benefit Amount field Click the Benefit Payout Options link Additional fields appear From the Method of Payout menu select Life Income or Lump Sum m If you selected Lump Sum from the Transfer Payout to Locked in Registered Asset and Registered Asset menus select an existing asset or create a new asset and then enter the percentage amount to transfer to each asset type The default name for each new asset is Transfer From lt name of pension gt The newly created assets can be further defined by going to the Net Worth category Accounts page and then clicking for the newly created asset m lf you selected Lump Sum from the Transfer Payout to Locked in Registered Asset and Registered Asset menus select an existing asset or create a new asset and then enter the percentage amount to transfer to each asset type The default name for each new asset is Transfer From lt name of pension gt The newly created assets can be further defined by going to the Net Worth category Accounts page and then clicking for the newly created asset If the plan includes survivor income or disability income analysis and you want the insurance analyses to assume that pension benefits will be paid to the pension owner or survivor if the pension owner becomes disabled or dies select the Benefits Vested Survivor Disability Analysis option m Survivor benefits are only paid out if a number larger than zer
163. port provides a summary of all the incomes and expenses entered in the plan To generate the Cash Flow report follow these steps 1 2 Go to the Enter Financial Data Cash Flow page Click the Cash Flow Report button You can use the options at the top right of the report as follows To generate a printer friendly report click the PDF or the Word button NaviPlan generates and opens the report using the selected format To update the open report after changes are made to the plan data click Refresh To see two copies of the report side by side click Duplicate To access the Reports menu click Reports Page 76 of 172 NaviPlan User Manual Entering Client Data Chapter 5 Entering strategies Level 2 Strategies can be used to accumulate assets or to pay down debt either by deducting from regular income or from surplus cash On the Savings page you can save a specific amount on a regular basis or as a lump sum On the Debt Modification page you can enter additional principal payments or if your clients have interest only or last period payment loans enter increases to the principal of a loan You can also change the order in which cash surpluses are used On the Redemptions page you can enter regular and lump sum redemption strategies On the Deficit Coverage page you can specify the order in which account types are redeemed when covering pre retirement deficits or specify the order in which individual account
164. r Level 1 Plans _ 22 02 02 oe eee eee cee ence cece ce ecceeceeceeeeeeeesees 109 Survivorinecomenibevelih tn ta foc hails a cta Dakese sed 109 Disability insurance Level 1 22 222 e cece cece eee ec cece cece cece ee ceeeceeecerecerseecseeeeees 111 Long term care insurance Level 1 2 2 22 e cece ce eee ee cence cece ccc ee cece ceccceecceesceeseeeees 112 Entering insurance goals for Level 2 Plans _ 2 22 22 22 eee eee eee cece cece cece ceecceeceeceeeseees 113 Survivor income goals if one client dies Level 2 2 002 222 c eee eee eee eee eee e cece eeeceeeseeceees 113 Survivor income goals if both clients die Level 2 02 02 2 cece e eee eee cee eee ccc aa aooaa nanan 123 Disability income goals Level 2 2 2 2 o cece cece ee cece oLD LDPD LLALL aL an aa 127 Long term care insurance goals Level 2 _ 2 22 0 2 aoaaa cee eee eee eee e cece cece ceeceeeceecseeeeeeeees 135 Critical illness insurance goals Level 2 2 2 222 2 eee eee cee cece cece cece cece cecceecceecseecseeseeees 138 Page 108 of 172 NaviPlan User Manual Entering Client Data Entering insurance goals for Level 1 Plans In Level 1 Plans insurance goals consist of life insurance disability insurance and long term care insurance Enter the applicable insurance information as described in the following procedures Survivor income Level 1 below Disability insurance Level 1 on page 111
165. r Manual Entering Client Data Page 162 of 172 estimate benefit pension 69 future benefits 70 expenses entering 74 retirement 96 surplus entering 75 F favorite reports 145 Financial Needs Analysis client report 151 Financial Needs Assessment client report 151 Financial Needs Summary client report 151 G General Assumptions Account Reinvestment Stategies 9 Lifestyle Asset Growth 10 Goal and Expense Analysis method 114 123 disability income 129 survivor income 115 123 goal funding 107 goals defining education 101 defining emergency fund 105 106 defining major purchase 103 disability income Level 2 127 disability insurance Level 1 111 disability insurance Level 2 128 funding 107 long term care insurance 112 NaviPlan User Manual Entering Client Data Page 163 of 172 long term care needs 135 reports 145 retirement 94 survivor income Level 2 113 123 survivor income analysis Level 1 109 graphs generating 143 guaranteed withdrawal benefits entering 45 payout options 46 reset feature 46 H Help accessing vi historical capital loss carryovers entering 15 historical RESP contributions entering 12 14 historical RRSP contributions entering 12 14 historical TFSA contributions entering 12 14 hold entering on a holding 39 holdings entering 38 l Income Coverage Analysis method 114 118 123 124 132 income tax rate assumptions Average Tax method 8 18 income tax reports 145
166. r 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 KI 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 1 From the Build Report page select the Custom Content report tile 2 Use the Choose File button to find your custom PDF 3 Enter a Title for the custom content 4 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 Creating a new report template Follow these steps to create a new template Page 149 of 172 NaviPlan User Manual Entering Client Data From the Select Report page select Start a New Template Select 4 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 SORA EA Report pages are displayed as tiles Select Add for each tile you want to include in your template To remove a t
167. r additional needs that may occur in the event of disability Major Purchase Goals to Description Amount Target Date Cover Vehicle 1 Sep12013 100 Specify Lump Sum Needs ADD LUMP SUM NEED Click the Add Lump Sum Need button to create a new row Set Goals section Disability Income category Client Co client Objectives page Lump Sum Needs tab Level 2 Plan Income Coverage Analysis method selected 2 Under Pay Off Outstanding Liabilities select any existing loans that will be paid off in the event of disability Note This option is only available if liabilities exist in the plan and if on the Enter Financial Data Net Worth Assets Liabilities page Liability Details dialog box Details tab the Payoff Options at Death selection is Transfer to survivor or Payoff at first death from estate 3 Under Major Purchase Goals enter the percentage of any goals that will be paid for in the event of disability This section is only available if major purchase goals are entered in the plan with a start date after January 1 of the following year 4 Ifyou expect lump sum needs under Additional Lump Sum Needs click Add Lump Sum Need and then enter the details of the need in the fields that appear 5 Once all lump sum needs are entered go to the Annual Income Needs tab 6 If you anticipate annual income needs under Annual Income Needs click Add Annual Income Need and then enter the pre tax income ne
168. r an RPP 4 Ifyou are not entering a LIF under Conversion Preference select one of the following Convert to LIF The account will convert to a LIF at the age you specify m Convert to LRIF The account will convert to a LRIF at the age you specify If you are converting to an LRIF skip the remaining steps 5 Select the age you want the conversion to occur 6 To maximize the payment amount based on the maximum rate select the Use maximum payment amount option 7 Enter the interest rate that will determine the maximum rate and then select the owner s province 8 From the Minimum Payment Frequency menu select the desired frequency If Annual is selected select the month in which the annual payment will be made 9 If applicable under Annuity Information select Convert to Annuity and then enter an interest rate in the Annuity Return field 10 To change the age at which to convert the annuity enter the age in the At Age field Setting up an LRIF _ Note LRIFs are not available in all jurisdictions Page 43 of 172 NaviPlan User Manual Entering Client Data To set up a LRIF follow these steps 1 Gotothe Enter Financial Data section Net Worth category Accounts page 2 Under Account List for the appropriate account click the 24 button or click anywhere on that row A dialog box opens 3 Gotothe Registered Account Setup tab Return Rates Registered Account Setup Account Fee Setup Con
169. rage return fluctuates according to market conditions as the allocation adjusts By default NaviPlan uses the setting defined on the User Preferences Plan Settings dialog box Current Portfolio Setting tab Settings menu Plan Settings To change the portfolio balancing method for the plan follow these steps 1 Go to the Plan Management Assumptions Current Portfolio Setting page Current Portfolio Setting 9 Current Rebalanced This option rebalances the accounts linked to a goal and uses the weighted average rate of return of the linked assets Current Not Rebalanced This option does not rebalance the accounts linked to a goal Each account linked to a goal maintains a separate rate of return Plan Management section Assumptions category Current Portfolio Setting page 2 Do one of the following Page 16 of 172 NaviPlan User Manual Entering Client Data Select To do this Current Rebalance the accounts linked to a goal a weighted average is applied to all Rebalanced accounts linked to the goal as per their investor profile Current Not Prevent accounts linked to a goal from rebalancing accounts linked to a goal Rebalanced maintain a separate rate of return Page 17 of 172 Entering income tax rate assumptions Average Tax method NaviPlan User Manual Entering Client Data Using the Average Tax method you can specify the client s and co client s income tax brackets before and
170. rance entering policies 90 goals Level 1 112 goals Level 2 135 lump sum income entering 65 M major purchase goals 103 milestones entering Level 1 10 entering Level 2 11 Monte Carlo reports 146 mortgage fixed rate 36 mortgages fixed 35 N Needs vs Abilities report 145 net worth entering 31 reports 145 notes adding personal 156 P pension income Benefit Formula 71 entering 69 Estimate Benefit 69 NaviPlan User Manual Entering Client Data Page 167 of 172 Peterson s Undergraduate Database 101 phone support vi plan assumptions entering 7 Planning Assistant opening 140 reports 141 using 140 portfolio balancing preferences setting 16 current not rebalanced 17 current rebalanced 17 portfolios setting up 28 progress plans creating 157 proposed portfolio overriding for goal Level 2 99 province of residence changing 18 R redemption strategies adding 97 setting up 40 80 refresh report 144 regular income entering 65 report settings assigning 143 duplicating 144 hiding 144 redisplaying 144 refresh 144 NaviPlan User Manual Entering Client Data Page 168 of 172 NaviPlan User Manual Entering Client Data report types stand alone Asset Allocation 145 Capital Accumulation and Redemption 146 Cash Flow 64 145 Deficit Coverage 146 Favorite Reports 145 Goals 145 Income Tax 145 Insurance 145 Monte Carlo 146 Needs vs Abilities 145 Net Worth 145 Summary 145 reports a
171. rance Coverage Tax Details Goal Funding Resulta User defined Text Summary Y Workflow Status Report dialog box Select Report Content Progress Client Reports John and Maria Dixon Copy of Copy of Plan Level 2 Build Report EJ Selec catego E v Retirement Setting Goals amp Addressing Risk An introduction to retirement planning ADD Retirement Income Statistics in the US This report includes information about income sources in the US that can help in formulating a retirement plan ADD Retirement Goal Progress Details This report includes more detailed information about progress towards the Retirement goal ADD Retirement Goal Coverage This report shows progress towards the retirement goal ADD Select Plan Data for Reports Selected Pages 0 Roth IRA Conversion This report includes information on how a Roth IRA conversion may help in achieving retirement goals ADD Strategies to Achieve Financial Success in Retirement This report shows ways in which you can reach your retirement goals O Add Section Select all Retirement Needs vs Abilities This report shows a graphic comparison of retirement needs against abilities in retirement ADD QUICK ACTIONS Remove BUILD REPORT Page 157 of 172 NaviPlan User Manual Entering Client Data To Build Templates for Progress Reports 1 Go to the Results section Client
172. rm care analysis for Robert The plan will simulate Robert entering long term care and analyze the plan over the long term care period Objectives ivi H Robert requires long term care services Assumptions LTCExpenses Income Adjustments During LTC Asset Availability Robert will enter LTC at age 107 in the year 2081 LTC period years 4 1 Assumption is that Robert dies at the end of the LTC period ROR on Surpluses amp Liquidations Capital Deferred Total Interest Dividends Gains Growth 6 00 6 00 0 00 0 00 0 00 For lifestyle assets that are available immediately you can specify the rate of return on the proceeds from the sale of the asset by entering values in the rate of return fields Set Goals section Long term Care category Client Co client Objectives page Assumptions tab Level 2 Plan Average Tax method selected 3 On the Assumptions tab define the age at which the client or co client will enter long term care and the duration of the long term care period NaviPlan assumes that the client will die at the end of the long term care period 4 Under ROR on Surpluses amp Liquidations enter the expected return rates 5 To override tax rates select Override Tax Rates and then enter the tax rates you wish to use Changing the tax rates here only affects the tax rates for long term care insurance calculations It does not affect rates used in the rest of the plan The default values
173. rpluses amp Liquidations enter return rates if needed 8 To override tax rates select Override Tax Rates and then enter the tax rates you wish to use Changing the tax rates here only affects the tax rates for disability insurance calculations It does not affect rates used in the rest of the plan The default values on this page originate from the Plan Management section Assumptions category General page 9 Complete one of the following procedures m Disability Income Goal and Expense Analysis method on the next page m Disability Income Income Coverage Analysis method on page 132 Page 128 of 172 NaviPlan User Manual Entering Client Data Disability Income Goal and Expense Analysis method The Goal and Expense Analysis option must be selected on the Set Goals section Disability Income category Client Co client Objectives pages To use the Goal and Expense Analysis option follow these steps 1 Gotothe Ongoing Expenses tab Assumptions Ongoing Expenses Additional Annual Income Lump Sum Needs Asset Availability Annual Expenses Percentage of lifestyle expenses to cover 100 Education Goals Number Annual to Description Name Start Age of Years Amount Cover University Education Jeremy 18 1 100 Surplus Strategy Percent surplus spent 0 Percent surplus saved 100 Analysis Surplus C Assume surplus is spent Additional Expenses ADD ADDITIONAL EXPENSE y Click the Add Addition
174. ry Enter the number of years remaining for repayment in the Years Left to Repay field Enter the year in which the repayments are to begin 4 Go to the TFSA Contributions tab and enter TFSA contribution information for the applicable family member s Page 12 of 172 NaviPlan User Manual Entering Client Data RRSP Contributions TFSA Contributions RESP Contributions TFSA Contributions TFSA Overcontribution Balance Plan Management section Assumptions category Historical Data page TFSA Contributions tab Level 1 Plan Detailed Tax method 5 Goto RESP Contributions and enter RESP contribution information for the applicable family member s Net incomes must be entered for CESG purposes RRSP Contributions TFSA Contributions RESP Contributions RESP Contributions Dependant As of Dec 31st 2014 where the beneficiary is Wayne Stevie Total RESP Contributions from All Subscribers a 0 0 CESG eligibility carry forward 0 0 0 Total CESG Payment Received s0 50 0 Plan Management section Assumptions category Historical Data page RESP Contributions tab Level 1 Plan Detailed Tax method Page 13 of 172 NaviPlan User Manual Entering Client Data Entering registered plan contribution data Level 2 To enter your clients historical registered plan data follow these steps 1 Go to the Plan Management Assumptions Historical Data page 2 G
175. s Additional Annual Income Lump Sum Needs Asset Availability Enter the overall percentage for pre retirement and retirement expenses for the survivor analysis Enter Additional Expenses to account for incremental expenses that may be incurred after the partner s deatt Annual Expenses Percentage of lifestyle and medical expenses to cover Education Goals Number Annual Description Name Start Age of Years Amount College Education Julia 18 0 Surplus Strategy Percent surplus spent 0 Percent surplus saved 100 Analysis Surplus y Assume surplus is spent Additional Expenses ADD ADDITIONAL EXPENSE Click the Add Additional Expense button to create a new row Set Goals section Survivor Income category Client Co client Objectives page Ongoing Expenses tab Level 2 Plan Goal and Expense Analysis method selected 4 If education expenses exist in the plan under Education Expenses enter the percentage of education expenses to be covered in the event of death Page 115 of 172 NaviPlan User Manual Entering Client Data 5 Under Surplus Strategy enter the applicable amounts in the Percent surplus spent and Percent surplus saved fields The surplus strategy applies throughout the life insurance analysis m The Percent surplus spent and Percent surplus saved fields control what NaviPlan does with any cash flow surplus during survivorship For example when one client dies you expect the survivor to incur
176. s are redeemed On the Surplus page you can specify additional savings and expenses that will apply every time the clients have sufficient surplus cash flow In this chapter Entering a regular savings strategy ooo nn 78 Modifying a loan a a eh iiedddfseceieat 79 Entering redemptions nas 80 Setting the deficit coverage order Detailed Tax method _ 22 2 22222 eee eee eee cece cece eeeeee 81 Entering surplus strategies _ 22 2 2 oo cece cece cece ence cece cee cece ee eeceeceeceeeeseeseeeees 82 Assumptions when entering multiple strategies of the same type 0 2 cece cece ccc cecceccceccceccees 82 Assumptions when entering multiple strategies of different types 2 02 2 e eee eee eee ee ee ee ceeee 82 Page 77 of 172 NaviPlan User Manual Entering Client Data Entering a regular savings strategy With all savings strategies you must save to an existing account you cannot save to a lifestyle asset If you haven t entered an appropriate account go to the Enter Financial Data Net Worth Accounts page to do so For more information see Creating accounts on page 37 To enter a regular savings strategy follow these steps 1 Go to the Enter Financial Data Strategies Savings page All existing savings strategies implemented in the plan appear Savings Debt Modification Redemptions Surplus Model savings strategies for registered and non registered accounts Multiple savings strate
177. s most appropriate for the investor 1 When do you expect to begin withdrawing money from your investment account Less than 1 year O 1to2 years O 3 to 4 years O 5to7 years O 8to 10 years O 11 years or more 2 Once you begin withdrawing money from your investment account how long do you expect the withdrawals to last O 1 plan to take a lump sum distribution O 1 to 4 years O 5to7 years O 8to 10 years O 11 years or more 3 Inflation the rise in prices over time can erode your investment return Long term investors should be aware that if portfolio returns are less than the inflation rate their ability to purchase goods and services in the future might actually decline However portfolios with long term returns that significantly exceed inflation are associated with a higher degree of risk Which of the following portfolios is most consistent with your investment philosophy O Portfolio 1 will most likely exceed long term inflation by a significant margin and has a high degree of risk Portfolio 2 will most likely exceed long term inflation by a moderate margin and has a high to moderate degree of risk eed long term inflation by a small margin and has a moderate degree of ris Plan Management section Asset Allocation category Questionnaire page 3 To view the asset allocation risk scores for the investor profile click Scoring NaviPlan shows the time horizon and investor profile that it has calculated 4 Go to t
178. sability long term care and critical illness insurance If using the Detailed Tax method NaviPlan automatically calculates many tax credits and deductions You can enter any applicable credits or deductions that are not automatically calculated by NaviPlan in the Tax Details category In this chapter Entering life insurance policies _ 2 22 22 e eee ce eee ee cece cee cee LLDD DDALL LDLo aaa 85 Modifying future values and premiums of a life insurance policy Level 2 _ 22 22 2 87 Entering disability insurance policies __ 2 220222 2 2 eee cece eee eee cece cece cee ceeeeeeeseeseees 89 Entering long term care and critical illness insurance policies _ 02 00 2222 eee eee eee eee eee 90 Generating the Insurance report nn 92 Page 84 of 172 NaviPlan User Manual Entering Client Data Entering life insurance policies To enter your clients existing life insurance policies follow these steps 1 Go to the Enter Financial Data Insurance Coverage page Insurance Coverage Enter your clients life disability and critical illness insurance policy information Life Insurance Description EJ Insured Policy Type Benefit Beneficiary Premium Actions Life Insurance Robert v Term 10 Life v 0 Robert v 0 smo pz R j BA j Disability Insurance Description EJ Insured Policy Type Benefit Premium Actions Group STD Robert v Group STD y
179. scretionary If applicable under Retirement Incomes modify retirement incomes that have been entered on the Enter Financial Data Cash Flow page OR Click Add Retirement Income to enter additional income that will be earned during retirement Note Incomes entered on the Retirement page also appear on the Enter Financial Data Cash Flow page under Incomes Defining liquidation order in retirement Level 2 Plans NaviPlan automatically redeems accounts to cover the retirement goal either using deficit coverage automatic account redemption method or a specific liquidation order 1 To change the manner in which accounts are redeemed during retirement click Liquidation Strategies on the Retirement page Liquidation Strategies Liquidation Order Redemptions Bucketing Liquidation Order Choose the order in which assets are redeemed during retirement Non Registered TFSA Registered IRAN viewmobirY LIQUIDATION ORDER See the Help for information on liquidation order and the use of residuals from accounts funding other goals accounts partially funding retirement and unlinked accounts Liquidation Strategies dialog box Liquidation Order tab Level 2 Plan 2 3 To redeem assets by account type only select one of the existing liquidation options OR To view and edit the order of specific accounts select View Modify the liquidation order For each applic
180. se this page to enter correlation values between all asset classes The correlation value between asset class A and asset class Bis the same as the correlation value between asset class B and asset class A etc Correlation data entered on this page will only affect asset class defaults for future plans Existing plans will not be affected but may be edited upon opening a plan A A Large Cap Equity 1 0000 B Small Cap Equiy 0 3200 C International Equity 0 4500 D Aggregate Bonds 1 0000 i E Cash 1 0000 Asset Allocation Settings dialog box Correlations tab 6 To change the correlation between two asset classes enter the new correlation value at the intersection of a row and column for the two asset classes 7 Go to the Investor Profiles tab The investor profiles entered on the Asset Allocation Settings dialog box Investor Profiles tab accessed from the User Preferences menu Asset Allocation Settings appear under Investor Profiles Page 27 of 172 NaviPlan User Manual Entering Client Data Asset Allocation Settings Asset Classes Correlations Investor Profiles Portfolios Enter the description for each investor profile To define an investor profile click Details affected but may be edited upon opening a plan Investor Profiles Description EJ Actions Conservative a 3 Moderate Conservative 2 xR Modera
181. ssigning settings 143 duplicating 144 generating 143 Planning Assistant 141 refreshing the view 144 Reports Progress Reports 157 reports client Asset Allocation 151 Financial Needs Analysis 151 Financial Needs Assessment 151 Financial Needs Summary 151 Retirement Distribution Summary 151 Page 169 of 172 reports stand alone Asset Liabilities 58 Cash Flow 76 Insurance 92 resources phone support vi training vi RESP contributions historical 12 14 retirement adding expenses 96 addingincomes 97 age 11 date assumptions 94 defining goals 95 goal assumptions 94 goal reporting 94 goals overriding proposed portfolio Level 2 99 liquidation order Level 2 97 milestones Level 1 10 Retirement Distribution Summary client report 151 return rates entering 38 overriding for accounts 40 revenu de placement couru 60 RRP account setup 42 RRSP converting to RRIFF 42 NaviPlan User Manual Entering Client Data Page 170 of 172 RRSP contributions historical 12 14 S savings strategies entering 78 entering for accounts 39 surplus 82 stand alone reports 143 Asset Liabilities 58 Cash Flow 76 Insurance 92 strategies debt modification 79 deficit coverage 81 redemptions 80 regular savings entering 78 summary reports 145 surplus strategies surplus expenses 82 83 surplus savings 82 survivor income insurance goals Level 1 109 insurance goals Level 2 113 survivor income analysis Level 1 109 survivor income analys
182. t 4 Click Select Document Sections for the report you want to generate Page 152 of 172 NaviPlan User Manual Entering Client Data Select Document Sections Default Template Q Select the sections to be included in the report and then click Generate Report to continue The order in which document sections appear in the report can be changed To change where a section appears drag it to the preferred location in the list Overview Current Financial Position Asset Allocation Retirement Attainable Retirement Education Major Purchase Emergency Fund Disability Insurance Life Insurance Long Term Care Goal Attainability Conclusion Appendix Scenario Probability Assumptions Important Terminology Disclaimer _ Delivery Acknowledgement i Save as Template i SelectAll SelectNone Mi Select Document Sections dialog box Y Y Y Y y Y y Y Y 7 Y Y Y 5 Select the sections you want included in the report 6 To view the subsections for a section click the beside that section The menu expands and subsections appear Select or clear the options for the appropriate subsections 7 Toreorder report sections click an applicable section and then drag it to another location 8 Tosave your selections as a template for this type of client report click Save as Template Enter a name for the template and then click OK The templates you create can be managed on the User Preferences System S
183. t Fee Setup bal Override Annual Fee Tax Amount Frequency Pay Fees From Deductible 0 00 Quarterly New account Account Details dialog box Account Fee Setup tab Detailed Tax method 4 Select Override 5 Adjust the account fee details as required Note The Tax Deductible option is available only when using the Detailed Tax method Page 41 of 172 NaviPlan User Manual Entering Client Data Converting accounts to retirement income funds You can specify the payout and conversion options for registered accounts To set up a specific account type see the following procedures Converting RRSPs or DPSPs to RRIFs To set up an RRSP a DPSP or a RRIF follow these steps 1 Go to the Enter Financial Data Net Worth Accounts page 2 Under Account List for the appropriate RRSP or RRIF click a 3 Go to the Registered Account Setup tab Savings Strategy Redemptions Return Rates Registered Account Setup Account Fee Setup Conversion Convert to RRIF O At Retirement O AtAgel 71 Elect payout in first year 4 Use younger partner s age for minimums hal End of Year Market Value as of 2013 _ 0 Minimum Payment Frequency Monthly v Make Annual Payments In January Enter Financial Data section Net Worth category Accounts page showing Registered Account Setup tab for an RRSP 4 Ifyou are setting up an RRSP under Convert to RRIF select the time when the conversion to an RRI
184. ta 2 Under Investment Accounts select one of the following options for each account m Available At Disability if the account is available for disability needs immediately when the client becomes disabled a Available Starting At Retirement if the account is not available for disability needs until retirement Not Available if the account is not available for disability needs 3 Under Lifestyle Assets and Business Entity Assets select one of the following options for each asset m Liquidate Immediately to sell the asset immediately if disability occurs m Liquidate At Retirement to sell the asset at retirement if disability occurs Not Available to hold the asset during disability The Education Specific Accounts section is for information purposes only and cannot be modified The list includes RESPs Page 134 of 172 NaviPlan User Manual Entering Client Data Long term care insurance goals Level 2 Long term care refers to services provided to people who can no longer take care of themselves Long term care insurance policies are available to cover anticipated expenses should long term care be required To enter data and assess needs for the client or co client follow these steps 1 Go to the Set Goals Long term Care Client Co client Objectives page 2 Under Objectives select If lt client co client gt is in Long term Care Client Objectives Co client Objectives Select the checkbox to activate long te
185. te 2 x Moderate Aggressive 2 3 Aggressive 2 x Asset Allocation Settings dialog box Investor Profiles tab 8 Investor profiles should be added from lowest to highest risk tolerance 9 Enter a name such as Conservative and then click Details Investor profile data entered on this page will only affect asset class defaults for future plans Existing plans will not be STOR PROFILE Investor Profile Details Investor Profile Description Conservative About this profile 4 Previous Entry P Next Entry Investor Profile Details dialog box 10 Enter the details of the new profile and then click OK 11 Goto the Portfolios tab On this tab you can edit the composition of the investor profiles you created on the Investor Profiles tab Page 28 of 172 NaviPlan User Manual Entering Client Data Asset Allocation Settings Asset Classes Correlations Use this page to display the asset class weighti Portfolio Criteria Select Your Default Profile Conservative Investor Profiles Conservative v Portfolios Class Name Large Cap Equity International Equity Cash Asset Allocation Settings dialog box Portfolios tab 12 the asset class percentages for this profile 13 Investor Profiles Portfolios ngs for any investor profile Weightings Class Name 50 00 Small Cap Equity
186. thdrawals tab 2 To add a manual dividend distribution click Add Manual Dividend Distribution To add a loan repayment to shareholder click Add Loan Repayment to Shareholder To add a share redemption click Add Share Redemption 3 Enter the details of the transaction you added For specific field details see the Help Defining private corporations share options in the event of death 1 Go to the Estate tab Page 54 of 172 NaviPlan User Manual Entering Client Data Private Corporation Details Total Value of Shares Corporate Year End Description EJ Wayne Jan Other Province of Incorporation Province of Taxation information only Northwest Territories y Northwest Territories y Dec 31 Private Corporation 0 0 0 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Specify which actions should be taken with the private corporation shares upon the death of the client and co client Estate Details Share options at first death EE y Share options at second death Sold to Other shareholder pa and death in the same year J Estate Freeze information only Jul 2015 Private Corporations Details dialog box Estate tab 2 From the Share options at first death menu indicate whether the shares should be purchased by the private corporation sold to the Other shareholder or transferred to the surviving client From
187. the bucket investment account will cover needs and click Ok The amount determined by the calculator will appear in the Target Balance field gt IN E Enter the remaining details of the bucketing strategy Liquidation Strategies dialog box Redemptions tab Level 2 Plan Substantially Equal Periodic Payments SEPP section Page 98 of 172 NaviPlan User Manual Entering Client Data Overriding the proposed investor profile for a goal Level 2 Plans You can review the proposed investor profile for the plan on the Plan Management Asset Allocation Profile page to see if it is appropriate for the goal If not to override the proposed portfolio follow these steps 1 Go to the Set Goals Retirement Education or Major Purchase page 2 Click Asset Allocation Note This button looks different for the retirement goal than for the other goals Asset Allocation Details O The Current Asset Mix shown below reflects the weighted asset mix of all accounts funding this goal in the current plan The Suggested Asset Mix reflects the time horizon and questionnaire for this specific goal It is used for the accounts funding this goal in your proposed strategy MODIFY QUESTIONNAIRE Investor Profile Period Override Investment Profile Pre Retirement N O Retirement Select the asset mix you would like to review Current Asset Mix Suggested Asset Mix All Retirement Accounts O Qualified Retirement Accoun
188. the Share options at second death and death in the same year menu indicate whether shares should be purchased by the private corporation or sold to the Other shareholder Use the Estate Freeze option and field to indicate whether an estate freeze should occur and the month and year of the freeze Page 55 of 172 NaviPlan User Manual Entering Client Data Defining asset class weightings To define asset class weightings for all accounts on the Accounts page do one of the following m Ifthe asset belongs to a single asset class select that asset class from the Asset Class Weightings menu m Ifthe asset is weighted in multiple asset classes select Manual Classification from the Asset Class Weightings menu assign percentages to various asset classes to equal 100 and then click OK m If you have the predefined Asset Allocation option and you know the symbol for the asset you are modifying enter it in the Symbol field and then click Classify NaviPlan enters the description and asset class weighting for the symbol m If you have the predefined Asset Allocation option and you want to classify the asset but do not know the symbol of the asset you are modifying you can search the predefined Asset Allocation database as shown in Searching the asset classifier database below Searching the asset classifier database If you have the predefined Asset Allocation option you can search for an asset classifier to use in the asset class wei
189. the Year 2000 Inclusion Rate IR The Applied Net Capital Loss fields will populate automatically Page 15 of 172 NaviPlan User Manual Entering Client Data General RRSP Contributions TFSA Contributions RESP Contributions Capital Loss Carryovers Capital Loss Carryovers Wayne Jan Unapplied Net Adjustment Applied Net Unapplied Net Adjustment Applied Net Capital Loss Factor Capital Loss Capital Loss Factor Capital Loss Before May 23 1985 so MN 0 go 14 0 After May 22 1985 and before 1988 0 1 0 0 1 0 In 1988 and 1989 so 3 4 0 so 3 4 0 After 1989 and before 2000 l 28 0 i so 2 3 0 In 2000 0 1 2 x IR 0 0 1 2 x IR 0 After 2000 and before 2015 l 0 1 0 Total 0 0 0 0 Year 2000 Inclusion Rate IR 0 0000 Year 2000 Inclusion Rate IR 0 0000 Plan Management section Assumptions category Historical Data page Capital Loss Carryovers tab Level 2 Plan Detailed Tax method Selecting a portfolio balancing method In NaviPlan you can specify how your clients assets are to be rebalanced using one of two methods Current Rebalanced or Current Not Rebalanced m When Current Rebalanced is selected NaviPlan assumes accounts are regularly rebalanced to maintain allocation and applies the weighted average return rate to accounts that are linked to goals m When Current Not Rebalanced is selected NaviPlan assumes the portfolio is never rebalanced and the weighted ave
190. tion and major expense goals Non registered accounts can fund any goal and can also be allocated to more than one goal Note You can also allocate accounts to goals or view account distribution for all plan goals on the Set Goals Goal Funding page 2 For each applicable account enter any combination of dollar amounts percentages or the keyword Balance to allocate funds to the applicable goals Note In Detailed Tax method you can allocate registered accounts to goals other than retirement In Average Tax method only non registered accounts can be allocated to goals other than retirement In NaviPlan you can fund goals in three ways m Fixed amount Enter a fixed dollar value When a fixed amount is entered NaviPlan uses only that amount to fund the goal even when additional funds are available in the account m Percentage Enter a percentage Balance Enter the keyword balance All remaining unallocated funds in the account are directed to the goal If entered for multiple goals the remaining balance is distributed equally among those goals When allocating an account across multiple goals and using any of the funding options NaviPlan divides the account into portions for each goal This split is reflected in stand alone reports and eliminates the need to manually divide an account Any account savings are then appropriately distributed among the account s goals If accounts are assigned to multiple goals and the combin
191. tirement goal reporting nn 94 Defining retirement goals _ 2 2 22 2 2 eee cece cece cece ec cee cece cece cece ceeeceeeeeesceeseeeceeeees 95 Defining liquidation order in retirement Level 2 Plans 0222 0 022 02 e cece ee eee ee eee cee eee ceeeee 97 Overriding the proposed investor profile for a goal Level 2 Plans 2222 222222 e eee eee eee eee eee 99 Defining education goals __ 2 22 22 eee eee cece ccoo 101 Defining major purchase goals _ 2 2 22 02 o ee eee cece eee ccc e ccc ee cece ceeeceecceeseecteecseeceeees 103 Defining an emergency fund goal _ 2 22 0 eee eee cee cence cece eee ec cece ceeceeesceeteeceeeceeees 105 Allocating accounts to goals nn 107 Page 93 of 172 NaviPlan User Manual Entering Client Data Retirement goal assumptions In NaviPlan retirement is treated as a goal rather than just a period of time You can identify a specific need allocate accounts to fund it and then see the resulting shortfalls and savings NaviPlan makes recommendations to achieve the retirement goal without taking cash flow into consideration for example NaviPlan may recommend that the clients save 1 000 per month even when the clients do not have that amount available in their cash flow Retirement date assumptions NaviPlan assumes that the retirement period begins and ends on December 31 of the year in which the last client in the plan dies Retirement dates can be cha
192. to cash flow incomes and will not automatically reinvest into any account taxes will be paid by cash flow Note To clear any changes and revert to the defaults entered on the User Preferences Plan Settings dialog box General tab click the Reset to Defaults button Setting lifestyle asset growth rates To change the growth rate defaults for lifestyle assets follow these steps 1 Go to the Plan Management Assumptions General page Lifestyle Assets Deferred Growth Rate Asset Type Pre Retirement Retirement Principal Residence 2 00 2 00 Cottage 2 00 2 00 Personal Use Property 0 00 0 00 Listed Personal Property 0 00 0 00 RESET TO DEFAULTS Plan Management section Assumptions category General page 2 Under Lifestyle Assets in the Lifestyle Assets field enter the desired default deferred growth rates for each asset type Note To clear any changes and revert to the defaults entered on the User Preferences Plan Settings dialog box General tab click the Reset to Defaults button Setting milestones Level 1 To enter the clients retirement dates and life expectancies follow these steps 1 Go to the Plan Management Assumptions Milestones page Page 10 of 172 NaviPlan User Manual Entering Client Data Milestones Carol Richard Age Date Age Date Retire At E Apr 2041 65 Feb 2041 Life Expectancy a 90 2066 a
193. to fund the retirement goal Page 53 of 172 NaviPlan User Manual Entering Client Data While private corporations provide additional goal funding options using private corporation accounts introduces another level of complexity for taxation at both the personal and corporate levels You may wish to consider using accounts within private corporations where funds can be withdrawn on a tax free basis such as Capital Dividend Account CDA balances and shareholder loans To enter withdrawals from a private corporation follow these steps 1 Gotothe Withdrawals tab Private Corporation Details Total Value of Shares Corporate Year End Description EJ Wayne Jan Other Province of Incorporation Province of Taxation information only Private Corporation s0 0 0 Northwest Territories v Northwest Territories v Dec31 Share Structure Historical Data Investment Account Other Assets Life Insurance Contributions Withdrawals Estate Enter any anticipated future withdrawals from the private corporation Manual Dividend Distributions ADD MANUAL DIVIDEND DISTRIBUTION Click the Add Manual Dividend Distribution button to create a new row Loan Repayments to Shareholder ADD LOAN REPAYMENT TO SHAREHOLDER Click the Add Loan Repayment to Shareholder button to create a new row Share Redemptions ADD SHARE REDEMPTION Click the Add Share Redemption button to create a new row Private Corporations Details dialog box Wi
194. to view or edit account distribution for all plan goals click Goal Funding For more information see Overriding the proposed investor profile for a goal Level 2 Plans on page 99 Page 103 of 172 NaviPlan User Manual Entering Client Data 8 Click the Select Plan Data for Reports button check any major purchase goals you wish to include in your reporting Select Plan Data for Reports Alternative Scenarios Education Goals Major Purchase Goals Include in Reports Description Member End Date Projected Amount ivi Expense Joint Sep 12015 45 000 SELECT ALL SELECT NONE coca Select Plan Data for Reports page All accounts allocated toward the major purchase goal appear on the Major Purchase page under Major Purchase Accounts The market value of each account displayed reflects the market value for the account and not the actual amount allocated to the major purchase goal Any accounts not allocated to a goal appear under Unassigned Accounts Page 104 of 172 NaviPlan User Manual Entering Client Data Defining an emergency fund goal For a joint analysis NaviPlan assumes that the emergency fund goal applies to both the client and co client When a client dies NaviPlan transfers the goal to the surviving client To define an emergency fund goal follow these steps 1 Go to the Set Goals Emergency Fund page Emergency Fund Define the emergency fund as a multiple of average monthly fixed ex
195. ts Non Qualified Retirement Accounts Non Qualified Annuity Retirement Accounts Large Cap Growth Equity 0 00 13 00 pLarge Cap Value Equity 0 00 16 00 Mid Cap Equity 0 00 13 00 Small Cap Equity 0 00 9 00 US REITs 0 00 5 00 International Equity 0 00 18 00 Emerging Markets Equity 0 00 6 00 a Long Term Bonds 0 00 3 00 Intermediate Term Bonds 0 00 9 00 a Short Term Bonds 0 00 4 00 International Bonds 0 00 4 00 pUnclassified 100 00 0 00 A hold has been placed on an account All Retirement Accounts Expected rate of return 0 00 8 77 Expected standard deviation 0 00 15 33 Asset Allocation Details dialog box Level 2 Plan retirement goal 3 If you are using predefined asset allocation you can override the asset allocation questionnaire your clients answered click Modify Questionnaire m Review the questionnaire and consider whether the responses are true for the goal If a different response to any of the questions would better reflect the goal select the option next to the question and then change the response Responses you enter on this page only apply to the goal and not to the rest of the plan Page 99 of 172 NaviPlan User Manual Entering Client Data 4 For the Retirement goal under Investor Profile select the period for which you want to override the profile 5 To override the selected Investment Profile select the Override option and then select the a
196. ts an asset mix appropriate for clients with that profile This suggested asset mix is used as an asset allocation target a model to achieve throughout the plan If you do not agree with the investor profile determined by the questionnaire results you can select an investor profile manually but you still must fill out the questionnaire first You can also modify the suggested asset mix To determine the clients investor profile follow these steps 1 Go to the Plan Management section Asset Allocation category Questionnaire page 2 Enter your clients responses to all the questions Page 21 of 172 NaviPlan User Manual Entering Client Data Questionnaire Profile SETTINGS Different investors have different risk tolerances Much of the difference stems from time horizon That is someone with a short investment time horizon is less able to withstand losses The remainder of the difference is attributable to the individual s appetite for risk Volatility can be nerve wracking for many people and they are more comfortable when they can avoid it However there is a definite relationship between risk and return Investors need to recognize this risk return trade off The following risk tolerance questionnaire has been designed to measure an individual s ability time horizon and willingness risk tolerance to accept uncertainties in their investment s performance The total score recommends which of the five risk profiles i
197. u require 0 to meet your calculated ongoing need Available Assets to Offset Needs Available Asset Override fm Copy Available Assets from Jan s Assessment Realizable Assets 0 Existing Life Insurance Policies 0 Total Available Assets so Ongoing Incomes 0 J Include Incomes as Entered in Plan Include CPP QPP and OAS 65 Age to Begin Retirement CPP QPP and OAS Benefits You will receive 0 in ongoing incomes to apply to your ongoing needs Set Goals section Survivor Income category Survivor Income page Level 1 Plan Page 109 of 172 NaviPlan User Manual Entering Client Data 2 Use the tabs along the top of the page to select a survivorship situation 3 Enter all lump sum needs in the Lump Sum Needs container Note Mortgage Principal All Other Loans and Education Goals are calculated based on data collected from elsewhere in the assessment To manually enter data for these fields select the Lump Sum Needs Override option 4 Enter all Ongoing Needs your client will need to pay in the selected survivorship situation The default entry is based on data entered elsewhere in the plan and is meant to show the amount of annual income necessary to replace the decedent s income m To modify these assumptions select El and modify any of the assumptions in the Ongoing Needs dialog box m You can also specify how much of the decedent s income is necessary to replace for different time periods 1 From the Ongoing
198. uity 12 81 Emerging Markets Equity 11 00 Return 4 31 4 31 6 83 6 69 6 69 Long Term Bonds 21 57 High Yield Bonds 33 33 Risk 8 72 4 80 8 49 49 International Bonds 8 52 Cash 12 77 INDIVIDUAL CONSTRAINTS OK CANCEL Optimize dialog box m The Optimize dialog box displays the Efficient Frontier graph also known as the Mean Variance Optimization graph Mean variance optimization is the process of identifying portfolios with the maximum expected return for a given level of risk m The vertical axis plots overall return rates and the horizontal axis plots standard deviation The solid line in the graph represents the efficient frontier which is the set of portfolios that provides the highest expected returns for their respective risk levels m The inputs for mean variance optimization are return rates standard deviation and the correlation coefficients of returns for each pair of asset classes The graph also accounts for any constraints applied in the Individual Constraints dialog box 3 To override the standard deviation follow these steps a Under Portfolio Statistics select the Override Standard Deviation option to manually enter a new standard deviation Under Suggested the Risk field becomes editable b Enter the standard deviation in the Risk field Once a new standard deviation is entered the graph updates to show the manually entered standard deviation Note Clicking a point on the Effici
199. unt Fee Setup Savings Strategy ADD SAVINGS STRATEGY Amount S or of Salary Frequency Start Date End Date Infl Add l Actions 0 00 Monthly v Jan12013 mm Ret 1st m 0 00 9 Account Details dialog box Savings Strategy tab showing an IRA 5 Enter either the dollar amount or percentage of salary to be contributed and the frequency of the savings contribution Ensure dollar values under 25 are entered with a dollar sign or they are assumed to be percentages Enter the Start Date and End Dates of the strategy To index the strategy for inflation select the Infl option To index by an amount greater or less than the default inflation rate enter a different percentage in the Add I field Note The Infl option is not accessible when a percentage of salary is entered Page 39 of 172 NaviPlan User Manual Entering Client Data Setting up a redemption strategy for an account Level 2 Detailed Tax You can enter a redemption strategy for any account type to redeem an account over a period of time or you can redeem an account in full as a lump sum To set up a redemption strategy follow these steps 1 Go to the Enter Financial Data Net Worth Accounts page 2 Under Registered and Non Registered Accounts click 4 for the appropriate account 3 Gotothe Redemptions tab Holdings Savings Strategy Redemptions Return Rates Account Fee Setup Redemptions ADD REDEMPTION STRATEGY
200. us savings strategies for non registered assets Assumptions when entering multiple strategies of the same type When entering multiple strategies of the same type for example two surplus savings strategies for each strategy NaviPlan saves or spends a percentage of the total surplus available on December 31 m For example if a client has a 100 000 surplus and 50 is saved to Account A and 50 is saved to Account B both accounts receive 50 000 thus saving the full amount of the surplus Assumptions when entering multiple strategies of different types In contrast when entering multiple strategies of different types for example one surplus savings strategy and one surplus expense strategy NaviPlan first allocates a percentage of the total surplus toward the savings strategy and then allocates a percentage of the remaining surplus toward the surplus expense For example a client has an 80 000 surplus a 50 savings strategy toward Account A and a 50 surplus expense strategy In this case NaviPlan saves 50 or 40 000 of the total surplus to Account A and then spends 50 of the remaining surplus or 20 000 on a surplus lifestyle expense After these strategies have been implemented NaviPlan assumes that the final 20 000 will be spent as part of the clients yearly cash flow Note NaviPlan automatically eliminates any remaining surplus or deficit as of December 31st in a given year If the clients do not intend to spe
201. v If Robert becomes Disabled v If Sarah becomes Disabled Objectives Percentage of lifestyle expenses to cover 100 Robert Sarah Cover Major Purchase Goals v w Pay Off Outstanding Liabilities B m Set Goals section Survivor Income category Disability Income page Level 1 Plan 2 Under Disability Insurance Analysis to Include select the appropriate If lt client co client gt becomes Disabled option to model the scenario for the client or co client Note For the purposes of the disability insurance analysis NaviPlan assumes that the client and co client do not become disabled at the same time 3 Under Objectives enter the percentage of lifestyle expenses to cover This is the percentage of current expenses that are expected to continue after the disability of the client or co client This feature allows you to illustrate a change in cash flow expense needs if one of the clients becomes disabled The default is 100 but the percentage can be changed For disability insurance non registered assets are available at the start of disability registered assets are available at the start of retirement and lifestyle assets are available for the estate 4 If the disability insurance coverage is to cover the outstanding major purchase goals in the event of the disability of one client select the Cover Major Purchase Goals option for the client and or co client 5 If the disability insurance coverage is to pay off al
202. version Convert to O UF LRIF Conversion Preference 9 Automatic Conversion will occur at first occurrence of a deficit during retirement no earlier than age 55 At Retirement AtAge 71 Payout Options Elect payout in first year Use younger partner s age for minimums U End of Year Market Value as of 2012 0 Use maximum payout amount Rate for determining maximum payout 6 00 Governing legislative area lt Owner s Province gt v Minimum Payment Frequency Monthly v Make Annual Payments In January Financial Picture section Net Worth category Accounts page showing Registered Account Setup tab for an LRIF 4 Under LRIF Historical Information enter the LRIF details 5 To maximize the LRIF payment amount select the Use maximize payout amount option Page 44 of 172 NaviPlan User Manual Entering Client Data Entering fixed income streams You can enter annuities and guaranteed withdrawal benefits directly in NaviPlan Level 1 or Level 2 Plans Entering guaranteed withdrawal benefit plans To enter guaranteed withdrawal benefit plans follow these steps 1 Go to the Enter Financial Data Net Worth Annuities page Assets Liabilities Accounts Annuities Private Corporations Asset Class Weightings Enter any guaranteed withdrawal benefit any annuities your clients currently receive payments from and any future annuity purchases Guaranteed Withdrawal Benefits ADD
203. xamine risk score and questionnaire results Analyze the effects of death disability critical illness long term care and 1 insurance on cash flow nsurance Analyze the effects of asset redemptions at death during disability if critically ill and for long term care View the value of the clients estates in a given year Estate Monitor changes to the value of the clients estates and how taxes expenses and benefits may affect it Compare goal type needs with abilities to meet those goals all goals of the same type are grouped together in the same graph Page 145 of 172 NaviPlan User Manual Entering Client Data Report categories Examples of the tasks you can perform Capital p Analyze the accumulation and redemption of capital used to fund a goal Accumulation and type or all goals Redemption Compare deficit coverage assets to deficit coverage sells Detailed Tax method only Analyze the probability of plan success given random asset returns based on the standard deviation assigned to each account and holding Page 146 of 172 Reports NaviPlan User Manual Entering Client Data Client reports can be accessed from the Results Client Reports section Select Report Select a Template or Start a New Report START A NEW REPORT START A NEW TEMPLATE Custom Templates Sample Template This is a sample template It contains all ofthe Next Gen Reports released at this time Sample Template 1 This is
204. y Client Co client Objectives page Annual Income Needs tab Level 2 Plan Income Coverage Analysis method selected 4 5 6 7 To enter annual child support needed for each child that will be provided in the event of death click Add Support for Dependant and then enter the support details This section does not appear if dependants have not been entered To determine how much of any cash flow surplus is assumed to be spent or saved under Scenario Surplus enter the percentage values For example when one client dies you expect the survivor to incur a cash flow surplus of 10 000 You also expect the survivor to spend 25 of this surplus on miscellaneous costs and invest the remaining amount For this example you would enter 25 in the Percent surplus spent field NaviPlan automatically saves the remaining 75 into a non registered account when survivorship occurs To define how much of an education goal is to be funded during survivorship under Education Goals enter a percentage value in the to Cover field Once income needs are entered go to the Lump Sum Needs tab Page 118 of 172 NaviPlan User Manual Entering Client Data Assumptions Lump Sum Needs Annual Income Needs Survivor s Income Asset Availability Select the outstanding liabilities that are to be paid in full upon death If items listed under Pay OF Outstanding Liabilities are not selected those regular payments will continue and be part of the surv
205. yover information related to the private corporation Then enter the total amount owed by the private corporation Notional Accounts RDTOH End of Year Value for 2014 T Dividend Refund for 2014 0 Capital Loss Carryover End of Year Value for 2014 0 Devas Outstanding Shareholder Loans to the Private Corporation CDA End of Year Value for 2014 0 Valuation Date Jul 152015 Wayne Jan Other Loan Balance as of Valuation Date 0 I 0 0 Private Corporation Details dialog box Historical Data tab showing the tabs only 2 Under Notional Accounts enter the previous year s end of year Refundable Dividend Tax On Hand RDTOH Enter the previous year s end of year Capital Dividend Account CDA value Enter the previous year s Dividend Refund Enter the total value of the private corporation s capital loss carryovers for the previous year To enter further carryover details click Details No MA Under Outstanding Shareholder Loans to the Private Corporation enter the Loan Balance for each shareholder in the associated field The total is calculated by NaviPlan Entering private corporation investment accounts and subaccounts Private corporations can have only one investment account which is considered a non registered portfolio To define the private corporation s investment account follow these steps 1 Go to the Investment Account tab Page 50 of 172 NaviPlan User Manual

NaviPlan User Manual: Level 1 & Level 2 Plans – Entering Data

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NaviPlan User Manual: Level 1 &amp; Level 2 Plans &ndash; Entering Data

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NaviPlan User Manual: Level 1 & Level 2 Plans – Entering Data