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NaviPlan User Manual: Level 1 & Level 2 Plans – Analyzing Client

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1. IRR Rrrrllllllll 19 Creating goal funding strategies Level 2 Plans I s aLL 222222 23 Managing scenarios in client reports ss es Re eere rell illl 24 Adding notes to scenarios 2 22 22 a 24 Generating scenarlo reports gad OLD suce sinear e i eede disia badea Saioa boasi inini ager 24 Chapter 3 Creating goal scenarios _ 2 2 22 a 25 Customizing what if scenarios Retirement 0000000000000000 aoaaa aa aaraa andanan 26 Entering retirement scenario objectives iiisiiuuuuussuullelsllllelslesss sse Reseller lle Ii 26 Entering additional retirement savings Level 2 s ceeeceeeeeees 27 Editing existing or adding new savings strategies Level 2 28 Entering retirement transfer strategies Level 2 28 Entering liquidation strategies Level 2 _ 0 2 2 sm RII LDL a222 29 Entering redemptions Level 2 22 222 II cece eee ceecceecteeceeeteeeseresees 29 Page 3 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Modeling bucketingstrate gies uto ta Kama AKA sana saka An a AE paman nA NA KE 30 Entering annuitization strategies Level 2 ss ceecceeceeeteecseeeeees 31 Defining CPP QPP aid OAS Beneflts hu II uU d ERR bv ei ideae 33 Adding incomes and expenses Level 2 sss IRR rmlrrllllllllll 34 Adding new retirement accounts and annuities to the scenario Level 2
2. LLsuuuuuuuuuuu 34 Modeling a change in the province of residence during retirement LLuuuuuuuuuuuuuuuuuueuuus 34 Customizing what if scenarios Education amp Major Purchase Ha 35 Entering education or major purchase scenario objectives sene see 35 Entering additional savings for the education or major purchase goal scenario 36 Editing existing or adding new savings strategies Level 2 36 Entering education transfer strategies Level 2 37 Adding new education or major purchase accounts to the scenario Level 2 Luuuuuuuuuuu 37 Customizing what if scenarios Emergency Fund sss sss aL aLa anaa 38 Entering emergency fund scenario objectives sss sss lll llli 38 Entering additional emergency fund savings 2 a 39 Editing existing or adding new savings strategies Level 2 39 Adding new emergency fund accounts to the scenario Level 2 2222 c cece eee eee eee eee 40 Chapter 4 Insurance goal scenarios 2 22 2 41 Customizing what if scenarios Insurance Level 1 I aL 22222222 43 Customizing what if scenarios Survivor Income Level 2 sss lllI 44 Goal and Expense Analysis method _ 22 2 2 aa 44 Income Coverage Analysis method 2 a 44 Quick Assessment Method su scc rro I MV TEENS 44 When both the client
3. ssl 60 Entering income available during disability Level 2 mI sIIs 61 Customizing what if scenarios Long Term Care Level 2 ssl 62 Entering long term care assumptions Level 2 ss sss aLL Daoa naaa 63 Entering long term care incomes and expenses 0 s eee cc eeceeeceeeeeee 64 Chapter 6 Examining results _ 12 22 2222 00 aa 65 Viewing goal coverage progress a 66 Tracking net worth and cash flow projections Viewing goal coverage progress uuuuuususe 66 Usine the Planning Assistant 2 eese ad na AA BAD PDE NAAT a cL Ao EMI EE tC nn kaanak 67 Opening the Planning Assistant 2 a 67 Viewing and or printing the Planning Assistant reports sss rlllll 68 Using reporting options in NaviPlan a 70 Generating stand alone reports and graphs 22 2 aa 71 Using Next Gen Reports s ceooz IR cece EOS if c RI Benet ed dc Lee EDEN UE 74 Working in NextGen Reporting 2 olo pL DIXI DIO a M RED MERDA IDIUTIOD S 74 Creating a new report with Next Gen Reporting 2202 22 22 sss ccc ecceceeceeseeseees 75 Creating a new template with Next Gen Reporting 2 02 02 a 76 Using a template to create a report nd cos aa nont INAGAWAN GG RII douigs doe gs eR Aisa ses edewe dese DNA 76 Adding custom content to a report aa 77 Page 5 of 93 NaviPlan User Manual Level 1 and Level 2 Pl
4. Liability Details dialog box the Payoff Options at Death is set to either Transfer to survivor or Payoff at first death from estate 3 If major purchase goals are included in the plan and you want to override the to Cover field under Major Purchase Goals select the Override option for each applicable major purchase and then enter a new percentage 4 To add lump sum needs to the scenario 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 Entering the survivor s income at death Level 2 This procedure only applies if the Income Coverage Analysis method is selected on the Set Goals Survivor Income Client Co client Objectives page To enter the survivor s income at the death of the client or co client in the Recommended scenario follow these steps 1 In Scenario Manager under Analyze Goals click the appropriate Survivor Income link and then go to the Survivor s Income tab Assumptions Lump Sum Needs Annual Income Needs Survivor s Income ADD SURVIVOR INCOME Survivor s Income Override Description Amount Infl Add l Actions L Salary 0 vyr 4 0 0096 9 Scenario Manager dialog box Survivor Income link Level 2 Plan Survivor s Income tab Page 49 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 2 To change the survivor s existing income in the
5. The Client Report Monitor allows you to continue using NaviPlan when generating time intensive client reports and progress reports Each time you click the Generate button for a report NaviPlan creates a request in the Client Report Monitor and generates the report Generating reports can take between a few seconds to a few minutes The Client Report Monitor allows you to monitor your recent request and the requests for other reports You can only open reports with a Completed status The Client Report Monitor is available from all the following areas in NaviPlan Online m Quick Actions menu Reports m Results Client Report page m Workflow Status page To use the Client Report Monitor follow these steps 1 Generate a client or progress report or from the Reports menu select Client Report Monitor The Client Report Monitor dialog box opens 2 Do one of the following To Do this List all reports for which you Clear the Show only reports for this plan option have access View a Click the link for a report with the Completed status The report opens complete using the format specified on the User Preferences menu User report Preferences System Settings dialog box Report Format tab Delete a Click Delete for the applicable report or click Delete All to delete all listed report reports and then click OK Note If you close the Client Report Monitor while a report is generating the report will continue to pro
6. In NaviPlan you can create and customize text that will be included in client and Next Gen 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 Results User Defined Text page 2 Under User Defined Text Summary select the goal or category for the user defined text 3 Under Objectives Recommendations or Action Plan click Add User Defined Text Entry My Quick Picks v amp BRA Bz u Z2 E amp zm E wm C Save to my Quick Picks for future use ADD TEXT ENTRY v Pd Previous Em CANCEL User Defined Text Entry dialog box 4 Enter the text in the dialog box and then use the formatting buttons where applicable Note A spelling checker is not available Use your browser s spell check or copy and paste plain text from Microsoft Word Graphics are not supported 5 If you would like to use this text across multiple plans or with multiple clients select the Save to my Quick Picks for future use option When you are finished click OK To edit an existing entry click PF to reopen the User Defined Text Entry dialog box for that entry To reorder entries within a category click Move Up or Move Down o0 0 ND Repeat steps 2 8 until all your entries are complete Page 81 of 93 NaviPlan User Manual Level 1 and Leve
7. Planning Assistant opening 67 reports 68 using 67 Q Quick Assessment 44 R recommended plan 11 refresh report 71 report settings assigning 71 duplicating 71 hiding 71 redisplaying 71 refresh 71 report types stand alone Asset Allocation 72 Capital Accumulation and Redemption 73 Cash Flow 72 Page 89 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Deficit Coverage 73 Fact Finder 72 Favorite Reports 72 Goals 72 Income Tax 72 Insurance 72 Monte Carlo 73 Needs vs Abilities 72 Net Worth 72 Summary 72 reports assigning settings 71 duplicating 71 generating 71 Planning Assistant 68 refreshing the view 71 reports client Asset Allocation 78 Financial Needs Analysis 78 Financial Needs Assessment 78 Financial Needs Summary 78 Retirement Distribution Summary 78 resources phone support 9 training 9 Retirement Distribution Summary client report 78 retirement scenarios adding accounts 34 Page 90 of 93 adding annuitities 34 adding expenses 34 adding incomes 34 annuitization strategies 31 entering 26 entering savings 27 liquidation strategies 29 redemption strategies 29 transfer strategies 28 S savings strategies adding for scenarios 28 36 39 editing in scenarios 28 36 39 Scenario Manager 10 11 scenario probability 19 20 22 scenarios adding alternative plans 14 comparing 11 18 differences in plan levels 13 education adding accounts 37
8. However you can also create unique scenarios that closely reflect your clients financial situation and preferences To add an Alternative Plan scenario follow these steps 1 Go to the Results section Analyze Goals category Scenarios page 2 Click Create Alternative Create Alternative 7 Step 1 Enter a description that identifies the A ternative scenario you are creating Alternative Name Alternative 6 Step2 Selectthe scenario from which you would like to copy Copy Existing Scenario fig Current with Suggested Asset Alloc Step 3 Select which predefined scenario s you would like to apply Retirement Maintain Current Plan Settings anc Create Alternative dialog box 3 Enter a name for the scenario 4 Select the scenario you would like to use as the basis for the new scenario 5 If you selected Current with Suggested Asset Allocation as the scenario you want to copy select which predefined scenarios you would like to apply to each of the goals in your scenario Note To delete an alternative scenario click the Delete button at the top of the listed scenario on the Scenarios page The Current Plan and Recommended Plan scenarios cannot be deleted Page 14 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Achieving goal success and viewing goal coverage NaviPlan recommends options to achieve each goal To view the recommended options cl
9. Level 1 and Level 2 Plans Analyzing client goals Select one option that would achieve 10096 goal coverage If you don t want to use any of the 10096 options select Continue Planning To use a combination of options such as saving a smaller monthly amount and retiring a few years later define the options yourself by using the slider bars or entering plan modifications in Scenario Manager Page 16 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Viewing goal coverage for other goals Under Analyze Goals you can view the status of all other goals in the scenario Analyze Goals Retirement Lj 8396 1st Year Withdrawal Rate 100 096 Major Purchase Vehicle Emergency Fund Survivor Income Client Co Client Both Disability Income Client Co Client Long term Care Client Co Client Goal Funding m 100 mw 0 Calculate Calculate Calculate Calculate Calculate Calculate Calculate CALCULATE ALL Scenario Manager dialog box Analyze Goals details Changes made to one goal can affect other goals The colour coded boxes under Analyze Goals indicate the expected goal coverage success for the goal The colour Indicates that Goal coverage is 90 or greater To view another goal in this scenario under Analyze Goals click the link for the goal you want to view The selected goal s details appear on the right side of Scenario Manager Note You can calculate insuranc
10. entering savings 36 transfer strategies 37 emergency fund adding accounts 40 entering 38 entering savings 39 goal coverage 15 66 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Page 91 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals including scenarios in client reports 24 major purchase adding accounts 37 entering savings 36 transfer strategies 37 recommended plan 11 recommending 18 retirement 26 adding accounts 34 adding annuities 34 adding expenses 34 adding incomes 34 annuitization strategies 31 entering objectives 26 entering savings 27 liquidation strategies 29 redemption strategies 29 transfer strategies 28 savings strategies adding 28 36 39 editing 39 editing existing 28 36 stand alone reports 71 strategies goal funding 23 summary reports 72 survivor income scenarios Level 1 43 Page 92 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals survivor income scenarios Level 2 44 additional annual income 47 annual income needs 48 assumptions 45 dependent needs when both clients die 50 goal and expense analysis 44 income coverage analysis 44 lump sum needs 48 ongoing expenses 46 survivor s income 49 T transfer strategies 28 37 U user manual conventions 8 series 7 Ww What Are My Options 15 66 Page 93 of 93
11. 2 22222 sss ss ell Entering the survivor s lump sum needs at death Level 2 Entering the survivor s income at death Level 2 sss oLan Entering dependant needs when both clients die Level 2 eee eee eee cece ee eeeee Customizing what if scenarios Life Insurance Quick Assessment 0 cece eee eee eeeee Customizing what if scenarios Disability Income Level 2 2 22 2 e eee cece cece eee cece ceeeees Goal and Expense Analysis method aa Income Coverage Analysis method a Entering disability income assumptions Level 2 Entering ongoing expenses during disability Level 2 enl Entering additional annual income during disability LIII Entering lump sum needs during disability Level 2 RI anaa Entering annual income needs during disability Level 2 sns KY 44 44 KY Page 41 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering income available during disability Level 2 sm Rm onana 61 Customizing what if scenarios Long Term Care Level2 LLuLuuuuuuueslesslssn sss ssIss 62 Entering long term care assumptions Level 2 seme llls 63 Entering long term care incomes and expenses 2 aaa 64 Page 42 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client g
12. Alternatives In Reports Include Alternatives In Reports o 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 B NE ly Alternative B m v OK CANCEL Results section Analyze Goals category Scenarios page Include Alternatives In Reports button Include Alternatives In Reports dialog box 3 Select an alternative scenario from the menus for Alternative A and Alternative B Adding notes to scenarios You can add your own notes to almost every page in NaviPlan including the Scenarios page and Scenario Manager dialog box Once you have added a note to a scenario an asterisk appears on the Notes button indicating that there is a note in the scenario To add a note to a scenario follow these steps 1 In the Scenario Manager dialog box click Notes 2 In the Notes dialog box enter the note Generating scenario reports After you have defined a scenario in NaviPlan you can examine the effect the scenario will have on the plan To generate a scenario report follow these steps 1 Go to Quick Actions Reports menu and then select the report you want to view 2 Selectthe applicable scenario Page 24 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Chapter 3 Creating goal scenarios This chapter describes how to customize scen
13. Analyzing client goals Index A accessing Help 9 alternative plan scenarios 14 annuitization strategies 31 Asset Allocation client report 78 Average Tax method 8 C Capital Accumulation and Redemption report 73 cash flow reports 72 Client Report Monitor Online using 83 client reports Asset Allocation 78 custom text 81 customizing 81 Financial Needs Analysis 78 Financial Needs Assessment 78 Financial Needs Summary 78 generating 78 80 including scenarios 24 Retirement Distribution Summary 78 conventions user manual 8 D deficit coverage reports 73 Detailed Tax method 8 Page 85 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals disability income scenarios Level 1 43 disability income scenarios Level 2 55 additional annual income 58 annual income needs 60 assumptions 55 goal and expense analysis 55 income available 61 income coverage analysis 55 lump sum needs 59 ongoing expenses 57 duplicating reports 71 education scenarios adding accounts 37 entering savings 36 transfer strategies 37 emergency fund scenario adding accounts 40 entering 38 entering savings 39 Fact Finder 72 favorite reports 72 Financial Needs Analysis client report 78 Financial Needs Assessment client report 78 Financial Needs Summary client report 78 Page 86 of 93 G goal and expense analysis 44 goal coverage color codes 17 Viewing 17 What Are My Options 15 66 goal funding s
14. Emergency Fund W 0 E 0 Calculate All Calculate All Include Alternatives In Reports Results section Analyze Goals category Scenarios page NaviPlan automatically creates a Recommended Plan scenario based on the current plan with suggested asset allocation The column on the far left of the Scenarios page is split into two categories Modify Financial Data and Analyze Goals similar to the left navigation bar in NaviPlan To view the plan details click Edit Recommended Plan or any of the links Page 11 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Scenario Manager Current Plan Recommended Plan Estate Plan Modify Financial Data Summary Scenario Name Estate Plan Goals with Shortfall 1 sumptions Net Worth cp AKOA 1 goal s with shortfall Emergency Fund 096 ndofYear 847 1 goal s that are covered e Analyze Goal At Death 4 827 709 dum wile Pay 7i CALCULATE A Cash Flow insurance goal s that need to be calculated Goals that are Covered 1 2013 Surplus Deficit 195 237 Pre retirement v 100 Retirement 95 Scenario Probability Retirement X 95 Cash Flow Analyze Goal Strategies 2013 Surplus Deficit 195 237 Insurance Coverage y Pre retirement 100 Analyze Goals X Retirement 95 Retirement m 95 mabababa 1st Year Withdrawal Rate 11 296 Emergency Fund mw 0 Net Worth Goal Funding 2013 End of Year 8 447 646 CALCULATE ALL At Dea
15. Enter To fund goals in this manner The account funds for this goal are used before those assigned a percentage or a Dollar balance If fixed amounts are assigned to multiple goals and the combined fixed value amounts exceed the value of the account then funds are automatically distributed according to the dollar amount entered The account funds for this goal are used before those assigned a balance Only goals Percentage g with fixed amounts take precedence All remaining unallocated funds in the account are directed to the goal The account The word funds for this goal will be used after those assigned a percentage or a fixed amount If balance balance is entered for more than one goal then the remaining balance is distributed equally among those goals For more information about funding goals see Allocating accounts to goals in Level 1 and Level 2 Plans Entering client data and goals Note Registered accounts can only be allocated to the retirement goal Page 23 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Managing scenarios in client reports NaviPlan allows you to manage multiple plan scenarios without having to concentrate on individual scenario details You can determine which scenarios should be included in client reports To include alternative scenarios in reports follow these steps 1 Go to the Results section Analyze Goals category Scenarios page 2 Click Include
16. Goals section Survivor Income category Survivor Income page Goal and Expense Analysis method m Entering survivor income assumptions Level 2 on the next page m Entering ongoing expenses Level 2 on page 46 m Entering the survivor s annual income needs Level 2 on page 48 m Entering the survivor s lump sum needs at death Level 2 on page 48 Income Coverage Analysis method m Entering survivor income assumptions Level 2 on the next page m Entering additional annual income at death Level 2 on page 47 m Entering the survivor s lump sum needs at death Level 2 on page 48 m Entering the survivor s income at death Level 2 on page 49 Quick Assessment Method m Customizing what if scenarios Life Insurance Quick Assessment on page 52 When both the client and co client die together m Entering dependant needs when both clients die Level 2 on page 50 Page 44 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering survivor income assumptions Level 2 To enter survivor income assumptions in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the appropriate insurance goal link Survivor Income Client Return Rate Death Benefit Premium Calculate Pre retirement Retirement 10026 Gg 0 0 oo KE GJ 6 0096 6 0096 Goal Coverage WHAT ARE MY O B Compare Scenarios Assumptions Ongoing Expenses Additional Annua
17. Note To override other assumptions such as life expectancy and the inflation rate for this scenario under Modify Financial Data click Assumptions select the applicable Override option and then edit the data Page 26 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 3 To override the default investment profile for the pre retirement or retirement period go to the Objectives tab select the Investment Objective option next to the profile and then select a different profile The Return Rates fields update automatically m The default investment profile for the plan is defined on the Plan Management Asset Allocation Profile page 4 Tooverride the return rates for the scenario select the applicable Override option and then enter new return rates 5 If applicable enter the percentage of fixed and discretionary expenses to cover during retirement Entering additional retirement savings Level 2 To enter additional savings for the retirement goal within the scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link Non Reg Add l Monthly Savings O 0 Additional Lump Sum Savings gg a 0 p Scenario Manager dialog box Retirement link Retirement details showing Savings slider bars and fields 2 Use the slider bars for Non Reg Add l Monthly Savings and Additional Lump Sum Savings to arrive at an optimal savings amount or enter the amou
18. and co client die together s IIl rllll 44 Entering survivor income assumptions Level 2 esI ceecceeseeceeeeeeees 45 Entering ongoing expenses Level 2 IIR LILL DLLD 2222 46 Entering additional annual income at death Level 2 47 Entering the survivor s annual income needs Level 2 sess lsIIs 48 Entering the survivor s lump sum needs at death Level 2 sse 2222 48 Page 4 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering the survivor s income at death Level 2 sss rrrcrlll 49 Entering dependant needs when both clients die Level 2 0222 ccc eee cee eee eee eeeeee 50 Customizing what if scenarios Life Insurance Quick Assessment senes 52 Customizing what if scenarios Disability Income Level 2 2 2 2 s mss II 55 Goal and Expense Analysis method 2 hot ieaiai ii eod ri aip inap pLi drodh Aaii eniai 55 Income Coverage Analysis method 2 02 22 aaa 55 Entering disability income assumptions Level 2 se emer riii 55 Entering ongoing expenses during disability Level 2 c cece cee eee eee ee cece eeeeees 57 Entering additional annual income during disability 2 aa 58 Entering lump sum needs during disability Level 2 nn slI 59 Entering annual income needs during disability Level 2
19. category Scenarios page and then click the Edit scenario Plan 2 Under Analyze Goals select the applicable goal link 3 Under goal click Scenario Reports and then select Scenario Probability Scenario Probability Details Enter the number of trials to be used when testing the scenario s probability of success in the Tota Probability Trials field Total Probability Trials 150 Scenario Probability Details dialog box 4 Enter the number of probability trials you want NaviPlan to perform and then click OK After NaviPlan calculates the scenario probabilities the Scenario Probability dialog box Probability tab opens showing a goal coverage graph for the scenario The Portfolio Variability Projection and Investment Capital tabs also appear To view more details about a graph click the Graph Information link Page 19 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Scenario Probability Probability Portfolio Variability Projection Investment Capital The Plan Probability graph illustrates the goal coverage percentage for each trial that was generated When NaviPlan Select generates the probability analysis it goes through the entire plan from the current plan date through to the set life expectancy date and varies return rates on available assets based on their anticipated average rates of return and standard deviations Next NaviPlan Select determines the resour
20. dialog box Portfolio Variability Projection tab 6 To view the annual rate of return instead select Annual ROR 7 Toview the projected capital accumulation go to the Investment Capital tab 8 If you are viewing results for a retirement goal and you want to determine the probability that all needs will be covered go to the Probability tab and then select Total Needs Covered by Total Resources OR To determine the probability that all fixed retirement needs will be covered select 96 Fixed Needs Covered by Total Resources Page 21 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Scenario Probability Probability Portfolio Variability Projection Investment Capital The Jnvestment Capital graph illustrates the ending net worth value each year for the actual plan the 10 percentile the 50 percentile and the 90 percentile from the current plan year through to and including the year of last death Alternative 1 1 0 0 9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 Investment Capital 0 0 TTTFTETTETETETEEEETETETETETTETETETETEETT TE TETTE TETETETETEETE TE TET ETT TEE TETTE 2013 2023 2033 2043 2053 2063 2073 2083 Years Total Assets Linked to Goal 50th Percentile 90th Percentile 10th Percentile Total Probability Trials 150 Ketat CLOSE Scenario Probability dialog box Investment Capital tab 9 Enter the number of trials you want
21. m anew modern design m increased control over the pages included in your report m improved user interface controls allowing you to preview pages get summary information and easily modify the order in which pages appear In order to understand Next Gen Reporting it is important to understand a few terms Term Definition A report page is a single topic Each tile on the Build Report page adds report pages to your Report page report A report is a collection of report pages After you have added each of the report pages you Report wish to present to your clients on the Build Report page the generated 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 Working in Next Gen Reporting Next Gen Reporting can be accessed from the Results Next Gen Reports section When you first access Next Gen Reports you will be taken to the Select Report page Select Report Select a Template or Start a New Report Getting Started START A NEW REPORT START A NEW TEMPLATE Custom Templates New Template New Template MEE More v D More v Results category Next Gen Reports section Select Reports page Page 74 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Creating a new report with Next Gen Reporting Follow these
22. 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 76 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Adding custom content to a report Follow these steps to add your own supplementary content e g client s wills other estate planning documents etc in PDF format to a report From the Build Report page select the Custom Content report tile Use the Choose File button to find your custom PDF Enter a Title for the custom content PLA m x When you are satisfied with these options click OK Note The following requirements apply m Maximum of 1 PDF per report 10MB or less m PDFs generated in versions of Acrobat later than 5 0 may not be able to be uploaded Converting Next Gen reports to Microsoft Word output Follow these steps to convert any generated Next Gen report into a Microsoft Word docx export file 1 Select the pages to include in your report then click Build Report 2 Once the report is generated a blue bar appears near t
23. registered accounts NaviPlan only redeems the portion that is linked to the retirement goal 4 To change the liquidation order of individual accounts for each applicable account select the account and then click Move Up or Move Down The liquidations occur when cash flow deficits exist in the plan during the retirement period Entering redemptions Level 2 To enter automatic retirement redemptions that will occur outside deficit coverage follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link and then go to the Redemptions tab Page 29 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses Redemptions New account ADD REDEMPTION STRATEGY Account Redeem Amount Description Al or9 Frequency Start Date End Date Actions New account C 0 006 Monthiy v Ret 1st m Death no m gt x Scenario Manager dialog box Retirement link Redemptions tab 2 Select an account from which funds will be redeemed and then click Add Redemption Strategy 3 Ifyou expect the entire account to be redeemed select the Redeem All option and then enter or select the date when the redemption should occur Redemptions can only occur on or after the retirement date 4 Enter the dollar amount of each redemption 5 From the Frequency m
24. the Set Goals Disability Income Client Co client Objectives page To enter annual income needs during disability in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Disability Income Client Co Client link and then go to the Annual Income Needs tab Assumptions Lump Sum Needs Annual Income Needs Survivor s Income Annual Income Needs ADD ANNUAL INCOME NEED Income Need Description Member pre tax Frequency Start Date End Date Infl Add l Actions Additional Annual Inc Sarah 0 Annual w Jan12014 Death Owner m 0 0096 3X EDUCATION EXPENSES Scenario Manager dialog box Disability Income link Annual Income Needs tab 2 To override an existing income need select the option next to the income need 3 To add an income need click Add Additional Annual Income Need and then enter the additional details of the income need s 4 To change the percentage of education expenses to cover at death click Education Expenses Education Expenses e Select the checkbox beside the education goal to override the percentage ofthe education expense that is expected to continue after the death ofthe client or co client Education Goals Number Annual Yo to Override Description Name Start Age of Years Amount Cover University Education Jeremy 18 4 100 Scenario Manager dialog box Disability Income link Education Expenses button Edu
25. the education goal to override the percentage of the education expense that is expected to continue after the death ofthe client or co client Education Goals Number Annual 96 to Overide Description Name Start Age of Years Amount Cover 10096 Ll University Education Jeremy 18 4 cae Scenario Manager dialog box Survivor Income link Education Expenses button Education Expenses dialog box 5 For each applicable education goal select the option next to the goal and then enter a new percentage in the to Cover field When you are done click OK Entering the survivor s lump sum needs at death Level 2 To enter the survivor s lump sum needs at death in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the appropriate Survivor Income link and then go to the Lump Sum Needs tab Page 48 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Assumptions Lump Sum Needs Annual Income Needs Survivor s Income Major Purchase Goals 96 to Override Description Amount Target Date Cover Vehicle 1 Sep 12013 0 Additional Lump Sum Needs Click the Add Lump Sum Need button to create a new row Scenario Manager dialog box Survivor Income link Level 2 Plan Lump Sum Needs tab Note This option appears if liabilities exist in the plan and if in the Enter Financial Data section Net Worth category Assets Liabilities page
26. then go to the Lump Sum Needs tab Assumptions Lump Sum Needs Annual Income Needs Survivor s Income Major Purchase Goals Yo to Override Description Amount Target Date Cover E Vehicle 1 Sep12013 096 Additional Lump Sum Needs ADD LUMP SUM NEED Click the Add Lump Sum Need button to create a new row Scenario Manager dialog box Disability Income link Lump Sum Needs tab 2 Tooverride the manner in which liabilities are paid off for this scenario under Pay Off Outstanding Liabilities select the Override liability pay off strategies option and then select an option Note Payoff Outstanding Liabilities is only available if liabilities exist in the plan and if in Enter Financial Data Net Worth Assets Liabilities Liability Details the Payoff Options at Death is set to Transfer to survivor or Payoff at first death from estate 3 If major purchase goals are included in the plan and you want to override the 26 to Cover under Major Purchase Goals select each applicable major purchase and then enter a new percentage 4 To add lump sum needs to the scenario under Additional Lump Sum Needs click Add Lump Sum Need and then enter the details of the need in the fields that appear Page 59 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering annual income needs during disability Level 2 This procedure only applies if the Income Coverage Analysis method is selected on
27. 8 4 100 onc Scenario Manager dialog box Survivor Income link Level 2 Plan Education Expenses button Education Expenses dialog box 4 For each applicable education goal select the option next to the goal and then enter a new percentage in the 26 to Cover field 5 Click OK 6 To add additional expenses to the scenario under Additional Expenses click Add Additional Annual Expense 7 Enter a description and the annual amount of the expense Entering additional annual income at death Level 2 This procedure only applies if the Goal and Expense Analysis method is selected on the Set Goals Survivor Income Client Co client Objectives page To enter the survivor s additional annual income at death in the Recommended Plan scenario follow these steps 1 In the Scenario Manager under Analyze Goals click the appropriate Survivor Income link and then go to the Additional Annual Income tab Assumptions OngoingExpenses Additional Annual Income Lump Sum Needs Additional Annual Income ADD ADDITIONAL ANNUAL INCOME Annual Override Description Income Type Amount Start Date End Date Infl Add l Actions LJ Salary Salary 0 Jan 1 2014 Ga Ret Co client EI 0 0096 Scenario Manager dialog box Survivor Income link Level 2 Plan Additional Annual Income tab 2 Toeditan existing income under Additional Annual Income select the option next to the applicable income OR To create a new income under Ad
28. D SAVINGS STRATEGY Amount Override Direct Savings To S or of Salary Frequency Start Date End Date Infl Add l Actions L Savings Joint Non Reg 0 0096 Monthly Jan 1 2013 Ret 1st E 0 00 i Registered Choose Account Ly ADD SAVINGS STRATEGY Amount s or of Salary Override Direct Savings To Owner Employer Frequency Start Date End Date Actions L Robert s RRSP 0 00 Monthly Jan 1 2013 Ret Own 13 1 Consider using a maximizer savings strategy to reduce any excess RRSP contributions and eliminate any unused deduction room Refer to Help Scenario Manager dialog box Strategies link Savings tab Page 39 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 2 To edit an existing savings strategy under Non Registered or Registered on the Savings tab select the Override option and then edit the savings strategy details 3 To add a new savings strategy under Non Registered or Registered select an account from the Choose Account menu and then click Add Savings Strategy Enter the savings strategy details 4 Under Analyze Goals click the emergency fund goal link to return to the goal details Under Goal Coverage note that the goal coverage for the emergency fund goal updates Adding new emergency fund accounts to the scenario Level 2 To add new accounts to the scenario follow these steps 1 In Scenario Manager under Modify Financial Data click th
29. NaviPlan to perform and then click Calculate The graph updates Note A higher number of trials will provide a more accurate probability distribution However NaviPlan will require more time to calculate the results of the probability analysis Page 22 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Creating goal funding strategies Level 2 Plans In addition to entering goal funding assumptions NaviPlan allows you to analyze various goal funding strategies and then apply an appropriate strategy to the clients recommended plan To create a goal funding strategy follow these steps 1 Go to the Results section Analyze Goals category Scenarios page and then click Edit Recommended or Alternative Plan 2 Under Analyze Goals click Goal Funding Goal Funding C Override Current Plan settings Existing Accounts University Emergency Account Name Owner Account Type Total Retirement Education Vehicle Fund Unallocated Savings Joint Non Reg 15 000 0 0 0 0 15 000 Robert s RRSP 75 000 10096 0 0 0 0 Sarah s RRSP 75 000 10096 0 0 0 0 165 000 150 000 0 0 0 15 000 Scenario Manager dialog box Goal Funding link Goal Funding details 3 Select the Override Current Plan settings option 4 Under Goal Funding in the available fields enter a fixed dollar value a percentage or the keyword balance for each non registered account as explained in the following table
30. Recommended Plan scenario under Specify Survivor Income select the option next to the income OR To add a new survivor income for the scenario click Add Survivor s Income 3 Enter the income details 4 To enter additional details for the income click Income Details Description Member Income Type Salary Sarah Salary Annual Amount Frequency Amount per Period 0 Annual 0 Start Date End Date Infl Add l Jan 1 2014 m Ret Owner Fi 0 0096 Other Options Exclude from savings strategies Eligible dividends Business income Elect to pay EI premium ADD SURVIVOR INCOME v BUGA Entry NextEntry gt O cance Scenario Manager dialog box Survivor Income link Level 2 Plan Add Survivor s Income button Income details dialog box 5 Enter detailed information 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 under Other Options make the appropriate selections Entering dependant needs when both clients die Level 2 To enter dependant needs when both clients die in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Survivor Income Both link and then go to the Assumptions tab 2 Tooverride the return rates used for the survivor income scenario under ROR on Cash Flow Surpluses amp Liqui
31. Registered and Non Registered Accounts v Enter Financial Data Category Net Worth count Type Owner Market Value Co Cash Flow John s RRSP RRSP John v 50 000 Strategies Joint Savings Non Registered v Joint v 50 000 Insurance Coverage Jane s RPP RPP money purchas v Jane v 25 000 Tax Details TC Goal Funding Retirement Enter Financial Data section Net Worth category Accounts page To help you use this guide please note the following abbreviations and graphics m AA Refersto the Asset Allocation Assessment m FA Refers to the Forecaster Assessment PI Indicates that the step or paragraph applies to Level 1 Plans only Indicates that the step or paragraph applies to Level 2 Plans only Indicates that the step or paragraph only applies when you are using the Average Tax method PI Indicates that the step or paragraph only applies when you are using the Detailed Tax method Page 8 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 buat Description and location resource 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 Ensetonal Functiona
32. Settings ANET M PDF i WORD Overview Problems Questions Opportunities Reports Selecta report Introduction jv 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 wil 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 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 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 Planning Assistant dialog box Reports tab P
33. TANI VA Ole NE NaviPlan User Manual Level 1 amp Level 2 Plans Analyzing Goals Volume VI of VI NaviPlan User s Guide Canada Version 15 0 Copyright and Trademark Copyright 2013 2014 Advicent LP and its affiliated companies Advicent All rights reserved Advicent and NaviPlan are trademarks of Advicent No part of this publication may be reproduced or transmitted in any form by any means electronic photocopying recording or otherwise without the written permission of Advicent Microsoft Word is a registered trademark of Microsoft Corporation Adobe and Acrobat are trademarks of Adobe Systems Inc All other product names are the sole properties of their respective owners Software 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 ofthe software and use ofthe software or this publication is prohibited by anyone who is not an authorized licencee All licences rights and restrictions on use ofthe 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 professional
34. able use the slider bars or enter the percentage of the education expenses to cover 3 Education goal only To override the duration of the education goal select the Duration option and then enter the number of years you expect the education goal to last 4 Major purchase goal only To override the amount of the major purchase use the Purchase Amount slider bar or select the option and then enter a rate at which to adjust annual savings University Education Expense Coverage Duration Infl Add l Goal Coverage pu oy o 100 E 4 LJiv 88 00 1 Additional Monthly Savings Current Monthly Savings Qm 0 Ld 0 as of Aug 1 2013 Additional Lump Sum Savings Qu 0 WHAT ARE MY OPTIONS B Scenario Reports v Objectives Transfers Investment Objective Return Rates Investment Profile C Override L Conservative Interest Dividends 0 7596 Capital Gains 2 5096 Deferred Growth 3 0096 Total 9 7596 Standard Deviation 39 0096 Scenario Manager dialog box education goal link Objectives tab Page 35 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 5 To override the inflation rate for this scenario select the Infl option and then if applicable enter a new rate 6 Major purchase goal only To override the purchase date select the Purchase Date option and then enter anew date 7 To override the default investment profile for the goal on the Objectives tab
35. advice and if any such advice is required the services of a competent professional person should be obtained Advicent has engaged Ibbotson Associates Inc a wholly owned subsidiary of Morningstar Inc to develop proprietary asset allocation tools for educational purposes Ibbotson has granted to Advicent a licence for use thereof Canadian version 11 5 2014 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Contents C CAP AA 3 NaviPlan User Guide Series 2 2 2 2 2 000 aaa 7 Conventions I ele e ln IenlllllllllIlclllllllllflmIm l33322222 8 NaviPlan Resources re lI II eee llrIlm2tt333332222222322 9 Chapter 2 Analyzing goals in NaviPlan _ 2 2 2 22 aa 10 Comparing SceNariOS 2s couilcce rtl Deme cte RfonIz t Txxecldbeleniiter dest ANS baaa aE bbces sedan 11 Understanding scenario differences in Level 1 and Level 2 Plans sees 13 Adding Alternative Plan scenarios 2 000000 s sss s e c eee cece cee ceeseeeees 14 Achieving goal success and viewing goal coverage a 15 Achieving goal success in a scenario l u a aoaaa s sse ses IR me recmlmellil 15 Viewing goal coverage for other goals 2 2 2 sess ssl L 222222 17 Comparing and recommending scenarios a 18 Comparing scenarios for an individual goal 2 18 Recommending a scenario a 18 Determining scenario probability Level 2 Plans
36. age 68 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 69 of 93 NaviPlan User Manual Level 1 and Level 2 P
37. al Coverage Robert s Retirement Age Sarah s ieee Aga E e 59 92 0 m ___ 5 65 01 82 nA Fixed Annual Retirement Expenses Discretionary Annual Retirement Expenses ba ff 10096 Pa ff 10096 Non Reg Add l Monthly Savings Current Monthly Savings Qm s0 E d SO as of Aug 1 2013 Additional Lump Sum Savings m B Scenario Reports v Liquidation Order Redemptions Bucketing CPP QPP amp OAS Objectives Savings Transfers Investment Objective Return Rates Investment Objective Investment Profile Ca Override P Pre retirement Retirement Pre retirement Conservative Interest Retirement L Conservative Diddends 759 Capital Gains 2 50 Deferred Growth 3 00 3 00 Total 9 75 9 75 Standard Deviation Results section Analyze Goals category Scenarios page Retirement link clicked Scenario Manager dialog box Recommended Plan scenario names Objectives tab In a Level 2 retirement scenario you can consider scenario probability you also have the ability to sell an asset Page 13 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Adding Alternative Plan scenarios Clicking the Create Alternative button on the Scenarios page allows you to create alternative scenarios in addition to the Recommended Plan Alternative 1 scenario NaviPlan has some predefined scenarios that can be added to education retirement and major purchase goals
38. ans Analyzing client goals Converting Next Gen reports to Microsoft Word output a 77 Generating cliente pOFts o Aao nak AA ert bdo decur ne ihn Sok na NAG 78 Preparing custom textTor reports 22 0 fons RE E E In DIC E ELI t DOORS 81 Managing quick picks for user defined text sss esses 82 Adding user defined text to Next Gen reports es esse Is erre ll 82 Using the Client Report Monitor Online 22 0 IRI RR ceeceeeceeeceeceeeceeeee 83 Adding notes for your own personal use 2 c sessili d Ii E PLAKA KATANA aR SOn iS 84 INAEN 85 Page 6 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals NaviPlan User Guide Series NaviPlan user guides are organized by the tasks you can accomplish in each level If you are a new NaviPlan user start with the Introduction user guide User manual Tasks covered m Setting up user preferences m Creating and managing client engagements Introduction m Determining which assessment or plan level to select m Using NaviPlan workflow Calculators m Using calculators to model specific aspects of your clients finances m Quickly assessing your clients current financial situation Forecaster Assessment m Entering account and annuity information Asset Allocation Assessment m Determining your clients investor profile m Entering financial planning assu
39. arios for retirement education major purchase and emergency fund goals and assumes you already know how to use the common features of Scenario Manager For more information about analyzing goals using scenarios see Chapter 2 Analyzing goals in NaviPlan on page 10 In this chapter Customizing what if scenarios Retirement Is cece cece eee cceeeee 26 Entering retirement scenario objectives 0 022 2 e eee eee eee cee srl repel 26 Entering additional retirement savings Level 2 0 2 o eee e eee eee eee cece cece ceecceeceeeseeetees 27 Editing existing or adding new savings strategies Level 2 28 Entering retirement transfer strategies Level 2 28 Entering liquidation strategies Level 2 29 Entering redemptions Level 2 l 1 22 0 sn sss I cece ceeceeeceeeceeceeeseeeseeees 29 Modeling bucketing strategies a 30 Entering annuitization strategies Level 2 sess LLL LaLa 22a 31 Defining CPP QPP and OAS Benefits 2 2 2 slm llmRlllllllllllllllllll22l 33 Adding incomes and expenses Level 2 s cece ceeeceeccececeeseerseeeeees 34 Adding new retirement accounts and annuities to the scenario Level 2 _ 2 220 22 e ee eee eee ee eee 34 Modeling a change in the province of residence during retirement 2 222 e ee eee eee eee 34 Customizing what if scenarios Education amp Major Purchase sees 35 Ent
40. bility Income Client of Income Goal Coverage Disability Benefit or Amount Premium Calculate Qe 0 mo Ly g so m EB 100 WHAT ARE MY OPTIONS B Compare Scenarios Assumptions Lump Sum Needs Annual Income Needs Income Available Adjust Milestones Robert Sarah Override Age Date Age Date Disability Retirement Age m 92 Jan 2066 65 May 2042 Disability Life Expectancy m 209 90 2067 Analyze Disability To ROR on Disability Insurance Proceeds Surpluses amp Liquidations Total Pre retirement Retirement Scenario Manager dialog box Disability Income link Assumptions tab 2 Toinclude additional disability insurance in the scenario enter the disability benefit percentage of income or dollar amount and annual premium amount You can adjust the Disability Benefit value using the slider bar Note Use the What Are My Options button to find the optimal death benefit amount 3 Tooverride the client s or co client s default retirement age select the Retirement Age for Disability Analysis option and then enter the age or date of retirement 4 Tooverride the client s or co client s default life expectancy select the Life Expectancy for Disability Analysis option and then enter the age or year of death 5 Tooverride the last year used in the client s or co client s disability analysis reporting select the Analyze Disability Through option and then enter the last age
41. cation Expenses dialog box 5 For each applicable education goal select the Override option next to the goal and then enter a new percentage in the to Cover field When you are done click OK Page 60 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering income available during disability Level 2 This procedure only applies if the Income Coverage Analysis method is selected on the Set Goals Disability Income Client Co client Objectives page To enter the clients income available during disability in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Disability Income Client Co Client link and then go to the Income Available tab Assumptions Lump Sum Needs Annual Income Needs Income Available Specify Income Available During Disability ADD DISABILITY INCOME Description Amount Infl Add l Actions Salary 0 yv 0 00 x Scenario Manager dialog box Disability Income link Income Available tab 2 Tooverride an existing income select the option next to the income To add a new income for the scenario click Add Disability Income and then enter the income details 3 4 Toenter additional details for the income click P 5 Enter detailed information 6 Repeat steps 2 5 until you are finished entering details for the income Page 61 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing clie
42. ces available and whether these resources are adequate to cover the need i e the goal expense NaviPlan Select draws from the available assets where appropriate NaviPlan Select then displays its findings using a percentage that illustrates how much ofthe goal is covered The percentage equals the ability to cover the total needs divided by the total needs where both the ability to cover total needs and the total needs are adjusted for inflation When the Tota Needs Covered By Total Resources option is selected NaviPlan Select determines if the resources available will cover the total needs of the goal where total needs equals all fixed and discretionary expenses fixed expenses may also include implicit expenses such as loan payments life insurance premiums and income taxes When the Fixed Needs Covered By Total Resources option is selected NaviPlan Select determines the goal coverage of each trial excluding discretionary expenses i e NaviPlan Select determines if the resources available will cover the fixed needs ofthe goal where fixed needs equals all fixed expenses Alternative 1 e 100 90 80 70 60 50 40 30 20 10 0 Goal Coverage Trials Total Needs Covered by Total Resources Fixed Needs Covered by Total Resources Total Probability Trials 150 CLOSE Scenario Probability dialog box Probability tab 5 To view return rate details for the probability analysis g
43. cess 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 83 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Adding notes for your own personal use In NaviPlan you can add notes for yourself that are not seen by the clients To enter personalized text for reports follow these steps 1 On any page within an open plan go to Quick Actions menu Notes and then select Add Note Notes Status Status amp a Bz u 2 m E E fm Jui 24 13 10 57 onc 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 o Below is a list of notes associated with this client file To print a copy of the notes click the Print button Status Status User defined Note Actions Jul 24 13 10 58 2 R Client requests more information about 1 PRINT Page 84 of 93 NaviPlan User Manual Level 1 and Level 2 Plans
44. client in pre retirement To analyze the effects of receiving benefits starting at various ages follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link and then go to the CPP QPP amp OAS tab Objectives Savings Transfers Liquidation Order Redemptions Bucketing CPP QPP amp OAS Incomes Expenses C Override Monthly CPP QPP Benefits Benefit Amount Eligible or Benefit Start Monthly Benefit Est in today s Age or Retirement in future S Starting In Robert 10096 Ret Client i 1 196 2034 Sarah 10096 Ret Co clie m 2 353 2042 Share CPP QPP Include CPP QPP Survivor Benefits Include CPP QPP Retirement Benefits Include CPP QPP Disability Benefits Monthly OAS Benefits Benefit Amount Eligible 36 or Benefit Monthly Benefit Est in today s S Start Age in future 5 Starting In Robert 10096 94 2 775 2068 Sarah 10096 67 1 365 2044 Benefits Indexed At Infl Add l Total 0 00 3 00 Voluntary Contributions to CPP QPP Individuals aged 65 and older who have salary bonus or self employment income types can make voluntary contributions to CPP QPP Robert Sarah Scenario Manager dialog box Retirement link CPP QPP amp OAS tab 3 Select the Override option 4 For each client modify the assumptions as needed Page 33 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Adding incomes and expenses Level 2 To add annual income
45. dations select the option and then enter the pre retirement and retirement return rates 3 Under Survivor Income Both details to include additional life insurance in the scenario enter the death benefit and annual premium amount You can use the slider bar or What Are My Options to find the optimal death benefit amount 4 Goto the Ongoing Income Needs tab Page 50 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Assumptions Lump Sum Needs Ongoing Income Needs Support for Dependents ADD SUPPORT FOR DEPENDANT Description Owner Amount Actions Ongoing Expenses Jeremy 6 SO lyr X Education Goals Number Annual Yo to Override Description Name Start Age of Years Amount Cover LJ University Education Jeremy 18 4 1 10096 Scenario Manager dialog box Survivor Income link Level 2 Plan Ongoing Expenses tab 5 Tooverride an existing ongoing expense under Support for Dependants select the option next to an existing expense and then edit the information or click Details 6 To add a new ongoing expense click Add Support for Dependent 7 Enter the details of the dependent expense s 8 For each applicable education goal select the option next to the goal and then enter a new percentage in the 26 to Cover field 9 Go to the Lump Sum Needs tab 10 Select the option next to an existing expense that you expect will apply 11 If any other lump sum needs are expected cl
46. ditional Annual Income click Add Additional Annual Income 3 Enter the income description select the income type and then enter an annual income amount Page 47 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering the survivor s annual income needs Level 2 This procedure only applies if the Income Coverage Analysis method is selected on the Set Goals Survivor Income Client Co client Objectives page To enter the survivor s annual income needs at death in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the appropriate Survivor Income link and then go to the Annual Income Needs tab Assumptions Lump Sum Needs AnnualIncome Needs Survivor s Income ADD ANNUAL INCOME NEED Annual Income Needs Income Need Description 3 Member pre tax Frequency Start Date End Date Infl Add Actions Additional Annual Inc Sarah 0 Annual v Jan 12014 Death Owner mm v 0 00 3 EDUCATION EXPENSES Scenario Manager dialog box Survivor Income link Level 2 Plan Survivor Income details Annual Income Needs tab 2 Under Additional Annual Income Needs click Add Additional Annual Income Need 3 Enter the income description and pre tax amount needed 4 To change the percentage of education expenses to cover at death click Education Expenses Education Expenses o Select the checkbox beside
47. e Age at Start of LTC field and then enter new values 3 To override the duration of the long term care period select the option next to LTC period years then enter the number of years NaviPlan assumes that the client will die at the end of the period 4 Tooverride the ROR on Surpluses amp Liquidations select the option and enter a new return rate 5 To include additional long term care insurance in the scenario under Long term Care Client CoClient details enter the Daily Benefit Amount and Premium Page 63 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering long term care incomes and expenses To enter long term care incomes and expenses for the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Long term Care Client Co Client link and then go to the LTC Incomes amp Expenses tab Assumptions LTC Incomes 8 Expenses Existing Annual Expenses Long term Care Survivorship Percentage of lifestyle and medical expenses to cover during 100 GJ 8596 Existing Incomes C Percentage of income David expects to receive duringLTC Blended Additional Long term Care Expenses ADD ADDITIONAL LTC EXPENSE Number Override Description EJ Expense Type Amount Frequency Start Date of Years End Date Infl Add l Actions LJ LTC Expense 0 Daily LTC EI 4 Death EI 0 0096 Scenario Manager dialog box Long term Care link LTC Income
48. e AIR field enter the expected rate of return for the new annuity d Click Calculate NaviPlan calculates and displays in the Payment per 1 000 field the amount that will be paid out of the annuity for every 1 000 of market value that is transferred into the annuity e If you do not want to use the calculated Payment per 1 000 value select the Override option and then in the Payment per 1 000 field enter the value you would rather use f Click OK Page 31 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Assets for Annuitization Assets for Annuitization Select the asset types to be made available to provide additional fixed annuity income Maximum Percentage Non Registered 10096 Registered 10096 TFSA 10096 Order of Annuitization Choose to either maintain the existing liquidation order for the scenario or apply a different order in which available assets will be used to provide annuity income Use scenario liquidation order settings 1 Use assets in the following order for annuitization 1 Using only assets that have been made available under Assets for Annuitization Scenario Manager dialog box Retirement link Annuitization tab Select the assets to annuitize link Assets for Annuitization dialog box 4 Toconvert asset types into an annuity click the Select the assets to annuitize link a Select the asset types you want NaviPlan to convert into an annui
49. e Net Worth link and then go to the Accounts tab 2 Click Add Account Page 40 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Chapter 4 Insurance goal scenarios This chapter describes how to customize scenarios for insurance goals and assumes you already know how to use the common features of Scenario Manager For more information about using the common features see Chapter 2 Analyzing goals in NaviPlan on page 10 All what if scenarios are created and customized in Scenario Manager To access it go to the Results section Analyze Goals category Scenarios page and then click Edit scenario Plan For more detailed insurance goal analysis use a Level 2 Plan In this chapter Customizing what if scenarios Insurance Level 1 Customizing what if scenarios Survivor Income Level 2 00 00000 2 22 e ee eee eee ee cece cece cece ceeeees Goal and Expense Analysis method 2 aa Income Coverage Analysis method aaa Quick Assessment Method 2 2 s s enne rr anaran anaran nnan When both the client and co client die together a Entering survivor income assumptions Level 2 s ssl cee eeeeeeee Entering ongoing expenses Level 2 s ss RR IR lmIrlLllIlllIllzlllll Entering additional annual income at death Level 2 sss rlIis Entering the survivor s annual income needs Level 2 _
50. e goal coverage by clicking the Calculate links or Calculate All Page 17 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Comparing and recommending scenarios NaviPlan allows you to compare multiple scenarios for meeting goals without having to create duplicate plans Once you have an appropriate scenario for your clients plan you can recommend it The Recommended Plan scenario is a system generated plan that incorporates the current plan and the recommended scenario NaviPlan incorporates the strategies into the Recommended Plan scenario in reports and graphs Comparing scenarios for an individual goal To compare scenario details for a goal follow these steps 1 Go to the Results section Analyze Goals category Scenarios page and then click Edit scenario Plan 2 Under Analyze Goals select the goal you want to compare 3 Click Compare Scenarios OR If you ve selected the Monte Carlo module click Scenario Reports and then select Compare Scenarios 4 Select the scenarios you want to compare NaviPlan displays an analysis of the two scenarios including assumptions and a graph for each scenario 5 To view additional assumptions go to the Assumptions Comparison tab Note The Assumptions Comparison tab does not appear for the emergency fund goal Recommending a scenario NaviPlan allows you to recommend the scenario you want to apply to your clients plan Recommended scenari
51. e the inflation rate for this scenario select the Infl option and then enter a rate at which to adjust annual savings 4 Enter the savings period in months up to a maximum of 60 5 To override the current asset class on the Objectives tab select the Asset Class option and then select a new asset class for the emergency fund NaviPlan assumes savings to an emergency fund are invested The Return Rates fields update automatically Entering additional emergency fund savings To enter additional savings for the emergency fund goal scenario follow these steps 1 In the Scenario Manager dialog box under Analyze Goals click the Emergency Fund link 2 Usethe slider bars for Additional Monthly Savings and Additional Lump Sum Savings to arrive at an optimal savings amount or enter the amount NaviPlan assumes that the savings are directed to a non registered account which is created when the savings are entered The return rate is based on the suggested asset mix 3 To specify additional savings strategy details such as inflation rates and start and end dates click Details Editing existing or adding new savings strategies Level 2 To edit existing savings strategies or to add new savings strategies for the emergency fund goal into the scenario follow these steps 1 In Scenario Manager under Modify Financial Data click the Strategies link Savings Debt Modification Redemptions Surplus Non Registered Choose Account INS AD
52. ent and suggested asset mixes asset class weightings and the efficient frontier Asset Allocation i If you are using predefined asset allocation examine risk score and questionnaire results Analyze the effects of death disability critical illness long term care and i 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 72 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 73 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Using Next Gen Reports Next Gen Reports feature a number of improvements to the traditional client reporting structure including
53. enu select the frequency of the redemption 6 Enter Retirement or a start date during retirement and then enter the strategy end date Note If Lump Sum is selected from the Frequency menu you cannot enter an end date or index the amount 7 To exclude penalties for early withdrawals or to index the redemptions to inflation click P and then edit the details as required Modeling bucketing strategies 1 To model a bucketing strategy go to the Bucketing tab and then complete the following steps a Click Estimate b Enter the number of years over which the bucket investment account will cover needs and click OK c The amount determined by the calculator will appear in the Target Balance field d Enter the remaining details of the bucketing strategy Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses v Override Distribution Bucket Target Balance Asset Class Return future Infl Add l Weightings Rates Estimate 0 vj 0 00 Canadian Cash Ec v 148 B Results section Analyze goals category Scenarios page Edit lt scenario gt Plan button Scenario Manager dialog box Retirement link Bucketing tab Page 30 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering annuitization strategies Level 2 An annuitize to need scenario calculates the amount of redeemable non annui
54. ering education or major purchase scenario objectives sss slIll 35 Entering additional savings for the education or major purchase goal scenario 36 Editing existing or adding new savings strategies Level 2 36 Entering education transfer strategies Level 2 37 Adding new education or major purchase accounts to the scenario Level 2 37 Customizing what if scenarios Emergency Fund _ 2 2 aa 38 Entering emergency fund scenario objectives a 38 Entering additional emergency fund savings a 39 Editing existing or adding new savings strategies Level 2 39 Adding new emergency fund accounts to the scenario Level 2 22222222 cece eee cece eee eee ee eee 40 Page 25 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Customizing what if scenarios Retirement NaviPlan allows you to customize existing retirement scenarios to help meet the needs of your clients financial situation and their preferences Once you have an appropriate scenario for your clients plan you can recommend it Recommended scenarios apply to reports where the Recommended plan type is used For information on recommending scenarios Recommending a scenario on page 18 All what if scenarios are created and customized in Scenario Manager To access it go to the Results section Analyze Goals and then click Edit sce
55. es and goal information to define their insurance needs m Income Coverage Analysis method Uses the clients income to estimate the anticipated expenses during the disability period NaviPlan allows you to customize a recommended disability income scenario for your clients financial situation and preferences Recommended scenarios apply to reports where the Recommended plan type is used To customize the disability income scenarios complete the following procedures based on the method used Note The procedures vary depending on which analysis method is selected on the Set Goals section Disability Income category Client Co client Objectives page Goal and Expense Analysis method m Entering disability income assumptions Level 2 below m Entering ongoing expenses during disability Level 2 on page 57 m Entering lump sum needs during disability Level 2 on page 59 Income Coverage Analysis method m Entering disability income assumptions Level 2 below m Entering lump sum needs during disability Level 2 on page 59 m Entering income available during disability Level 2 on page 61 Entering disability income assumptions Level 2 To enter disability income assumptions in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Disability Insurance Client Co Client link Page 55 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Disa
56. fer funds from and then click Add Transfer Strategy 3 From the Destination Account menu select the account you want to transfer funds to and then enter the dollar amount or percentage of the source account you want to transfer 4 Enter the date when you want the transfer to occur Entering liquidation strategies Level 2 To define the liquidation order of assets to cover cash flow deficits and to define additional automatic redemptions in the retirement goal scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link and then go to the Liquidation Order tab Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses Liquidation Order v Override the default order Choose the order in which assets are redeemed during retirement Non Registered TFSA Registered v VIEW MODIFY LIQUIDATION ORDER Scenario Manager dialog box Retirement link Liquidation Order tab 2 To override the liquidation order settings for the plan select the Override the default order option 3 To redeem assets by account type only select one of the existing liquidation options OR To edit the order of specific accounts select the Modify the liquidation order option A menu of existing accounts and the current liquidation order appears By default the accounts are ordered based on the selected liquidation option Note For non
57. g disability To enter the clients additional annual income during disability in a what if scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Disability Income Client Co Client link and then go to the Additional Annual Income tab Assumptions Ongoing Expenses Additional Annual Income Lump Sum Needs Additional Annual Income ADD ADDITIONAL ANNUAL INCOME Annual Description Income Type Amount Start Date End Date Infl Add l Actions Additional Annual Income Salary x 0 Jan 1 2014 Ret Client m v 0 006 x Scenario Manager dialog box Disability Income link Additional Annual Income tab 2 To edit an existing annual income previously entered in the Set Goals category under Additional Annual Income select the Override option next to it and then edit the income 3 Tocreate a new annual income under Additional Annual Income click Add Additional Annual Income 4 Enter the income description and annual income amount for the new income 5 Repeat steps 3 4 until you ve finished entering all additional disability income Page 58 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering lump sum needs during disability Level 2 To enter the client s lump sum needs during disability in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Disability Income Client Co Client link and
58. have been reduced by strategies Summary 1 z 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 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 To generate a client report follow these steps 1 Go to the Results Client Report page Page 78 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 Current Template v Action GENERATE Status Submission Time Financial Needs Assessment SELECT DOCUMENT SECTIONS Asset Allocation Default Template v GENERATE To view the list of all the generated reports go to the Client Report Monitor Financial Needs Summary Default Template v GENERATE Re
59. he top of the page From this bar click Convert to Microsoft Word to generate the report in Word format Page 77 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Generating 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 ho ta Description report Financial NE Need This report provides an overview of the clients current financial situation and eeds indicates whether the clients goals are attainable Assessment p This report demonstrates the effects that the clients time horizon risk tolerance sse Allocati and asset allocation have on their portfolio returns The clients portfolio is calculated ocation ee A 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 Sar Distributi clients may expect in retirement The report focuses on the apparent risks in the istribution i clients current plan and how those risks
60. ick Add Lump Sum Need and then enter the details of the need in the fields that appear Page 51 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Customizing what if scenarios Life Insurance Quick Assessment The Quick Assessment method calculates your clients additional insurance needs based on a simple comparison of their lump sum and ongoing needs to their assets available to offset those needs This allows you to quickly assess your clients need and provide an accurate amount of additional coverage they will require To make changes to Survivor Income goals calculated using the Quick Assessment method follow these steps 1 In Scenario Manager under Analyze Goals click the Survivor Income link for the appropriate client s Survivor Income Client Death Benefit Premium Calculate PAKA L s0 50 mo AR Goal Coverage 100 WHAT ARE MY OPTIONS B Compare Scenarios Lump Sum Needs Ongoing Needs Available Assets to Offset Needs Assumptions Results C Override Lump Sum Needs Lump Sum Needs Override fa Copy Lump Sum Needs from Susan s Assessment Mortgage Principal 0 All Other Loans 0 Education Goals 0 Emergency Fund Final Expenses burial probate etc Any Additional Needs Total Lump Sum Needs Scenario Manager dialog box Survivor Income lt client gt link 2 Proceed to the Lump Sum Needs tab and review the data displayed there Page 52 of 93 NaviPlan U
61. ick What Are My Options The options may differ among goals Achieving goal success in a scenario To achieve 100 goal coverage in a scenario follow these steps 1 Go to the Results section Analyze Goals category Scenarios page Edit scenario Plan Scenario Manager dialog box goal link Retirement Robert s Retirement Age Sarah s Retirement Age Goal Coverage Ng a 59 92 0 a c 65 65 0 83 CaA Fixed Annual Retirement Expenses Discretionary Annual Retirement Expenses Paa ff 10096 p 10096 Non Reg Add l Monthly Savings Current Monthly Savings a 0 Fd 0 as of Aug 1 2013 WHAT ARE MY OPTIONS Additional Lump Sum Savings m uu 0 I B Scenario Reports v Scenario Manager dialog box Retirement details 2 Use the sliders to easily adjust values to solve goals 3 To achieve 10096 success under Goal Coverage click What Are My Options What Are My Options The following options will achieve a 10096 goal success Select an option to implement as part ofthe scenario Select Continue Planning if you do not want to implement any ofthe scenarios O Cover 96 of Expenses 10096 0 OR O Save Monthly 182 OR O Save a Lump Sum 520 866 OR O Retire in Jan 2034 Jan 2034 63 61 OR Continue Planning ones What Are My Options dialog box showing retirement options Page 15 of 93 NaviPlan User Manual
62. ility Level 2 Plans m ceeeeeeceeeeees 19 Creating goal funding strategies Level 2 Plans ss ceecceeseeesees 23 Managing scenarios in client reports a 24 Adding notes to scenarios Lun ara N0 NANAY Nak ANAL AN SS Nya udi lsseiecedesiivper iseleroieienodi rei 24 Generating scenario reports ss n cece eee cece ec eeceeceeseceeceeseeseeees 24 Page 10 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Comparing scenarios On the Scenarios page you can compare the Current Plan scenario the clients current financial situation with the Recommended Plan scenario the proposed option or best case scenario As well you can create numerous alternative scenarios Two alternative scenarios can be shown on the Scenarios page for comparison purposes The Scenarios page allows you to see at a glance how the changes you make to the plan may affect goal coverage as well as overall net worth and cash flow Scenarios Current Plan Recommended Plan Alternative Plans CREATE ALTERNATIVE Review Current Plan Edit Recommended Plan Estate Plan Modify Financial Data Assumptions Details Net Worth 2013 End of Year 9 636 480 8 447 646 At Death 39 193 396 4 827 709 Cash Flow 2013 Surplus Deficit 147 999 195 237 Pre retirement X 100 v 100 Retirement X 77 X 95 Strategies Details Insurance Coverage Details Analyze Goals Retirement LE 7796 E 95
63. istered savings to any RRSPs RRSP Spousal and or TFSAs use the sliders to adjust the extra savings for the appropriate account types 3 To index the savings to inflation or another percentage select the Indexed By option and then enter an index rate 4 Under Analyze Goals click the Retirement link to return to Retirement details Under Goal Coverage note that the goal coverage for the retirement goal updates Entering retirement transfer strategies Level 2 Note Transfers cannot be entered in the Current Plan scenario To model transferring assets from one account to another follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link and then go to the Transfers tab Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses Transfers Choose Source Account v ADD TRANSFER STRATEGY Transfer Source Destination Account Amount Transfer Dest Acct Account Account Details or Date Owner sAge Actions New account kale 0 Novi2014 NA x Scenario Manager dialog box Retirement link Transfers tab Note Only accounts created in the current plan that are funding the retirement goal in whole or in part are available Page 28 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 2 Under Choose Source Account select the source account you want to trans
64. l 2 Plans Analyzing client goals Managing quick picks for user defined text To access and manage any existing quick picks follow these steps 1 On the User Defined Text page select a goal or category from the User Defined Text Summary menu 2 Click Manage My Quick Picks 3 A list of all quick picks saved for the goal or category will appear m To add a new quick pick click Add m Toeditthe content of an existing quick pick click m To delete a quick pick click x 4 Once you ve finished managing your quick picks click OK Adding user defined text to Next Gen reports To add your user defined text to Next Gen reports follow these steps Go to the Results Next Gen Reports page On the Select Report page select either an existing template or click Start a New Report From the Select a category menu select a goal or category Pe IS Depending on the type s of user defined text you entered Objectives Recommendations or Action Plan a report page will appear under the Content section 5 Click Add to include the page s containing your user defined text in the report Objectives z Action Plan This report displays any user defined text This report displays the action plans you you have provided for your clients have entered on the User Defined Text financial goals page Page 82 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Using the Client Report Monitor Online
65. l Income Lump Sum Needs Adjust Milestones Sarah Override Age Date Survivor Retirement Age LJ 65 May 2042 Survivor Life Expectancy LJ 90 2067 ROR on Cash Flow Surpluses amp Liquidations Total Pre retirement 6 0096 Retirement 6 0096 Scenario Manager dialog box Survivor Income link Level 2 Plan Assumptions tab Page 45 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 2 Under Survivor Income client details to include additional life insurance enter the death benefit and annual premium amount You can use the slider bar and the What Are My Options button to find the optimal life insurance amount 3 Tooverride the return rates used for the additional life insurance select the override option and then enter the pre retirement and retirement return rates 4 Tochange the survivor s retirement age for the scenario select the Survivor Retirement Age option and then enter the retirement age or date 5 Tochange the survivor s life expectancy for the scenario select the Survivor Life Expectancy option and then enter the life expectancy age or year 6 To override the return rates used for cash flow surpluses and liquidations under ROR on Cash Flow Surpluses amp Liquidations select the override option and then enter the pre retirement and retirement return rates 7 Note the goal coverage graph results Entering ongoing expenses Level 2 This pr
66. l documents explain NaviPlan functionality underlying assumptions and uncti results calculations You can access functional documents from the NaviPlan Learning documents Centre Quick Reference Quick Reference Guides are designed to get you started with a particular workflow in Guides NaviPlan You can access QRGs from the NaviPlan Learning Centre QRGs User You can also access other user guides in this series You can access guides from the Guides NaviPlan Learning Centre Help Help videos are designed to give you an overview of each section in NaviPlan You Videos can access help videos from the NaviPlan Learning Centre 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 9 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Chapter 2 Analyzing goals in NaviPlan This chapter introduces Scenario Manager which is accessible from the Results section Analyze Goals category in NaviPlan In most plans the clients current resources and strategies do not meet their goals With NaviPlan you can create What if scenarios that contain additional assumptions and strategies to help develop an optimal solution for the clients Even in plans where the goal is adequately funded or overfunded What if scenarios can be used to find an optimal soluti
67. lans Analyzing client goals 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 Page 70 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Generating stand alone reports and graphs After you have entered your clients financial information and goals you can verify the results by generating stand alone reports and graphs NaviPlan provides a large selection of reports and graphs from the Quick Actions Reports menu Level 2 Plans have access to a larger number of reports than Level 1 Plans To generate a stand alone report or graph follow these steps 1 A A A A A A A A A A A Go to the Quick Actions menu Reports menu select a report category a
68. lts e Results based on data entered up to the point of generating these result NetWorth Cash Flaw Retirement Education Survivor Income Disability Income Education mana Ja 20 000 so d Save Monthly 31 118 520 000 Save a Lump Sum 542418 2014 2016 2018 Goal Coverage 2696 restments at End of Goal 0 c Options to Increase Goal Coverage Cover of Expenses 25 3 182 88 Net Withdrawals B EOY Capital Ml Shortfall Current Results dialog box Education tab Page 66 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 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 Click the Q
69. m 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 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 67 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 Assistant select either Current or Recommended and then go to the Reports tab Planning Assistant e
70. mptions m Entering detailed net worth cash flow and insurance information Level 1 and Level 2 Plans m Adding holdings to accounts and annuities Entering client data and goals m Entering saving and redemption strategies m Entering client goals m Generating client reports m Analyzing your clients goals using Scenario Manager m Conducting detailed cash flow and net worth analyses Level 1 and Level 2 Plans g m Generating Monte Carlo simulations Analyzing client goals m Creating goal scenarios m Generating client reports Page 7 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Conventions This user guide uses the following conventions m The names of items on the screen are bolded and italicized For example the Clients page opens m The names of items that you must select click or enter appear in bold For example select Recommended and then click OK m To help you navigate through the application locations are separated by en dashes For example Enter Financial Data section Net Worth category Accounts page v Client Information Net Worth Client List Assets liabilities Accounts Holding Companies Asset Class Weightings Section Enter new accounts define how and edit investment incc Plan List To edit investment income earn4 non registered accoun Modules Previously Incurred Investment Activity Assumptions Asset Allocati
71. n Redemptions Surplus Non Registered Choose Account Y aaa Amount Override Direct Savings To S or of Salary Frequency Start Date End Date Infl Add l Actions J Savings Joint Non Reg 0 0096 Monthly Jan 1 2013 Ret 1st E 0 00 Registered Choose Account Y ADD SAVINGS STRATEGY Amount s or of Salary Override Direct Savings To Owner Employer Frequency Start Date End Date Actions CJ Robert s RRSP 0 0096 Monthly Jan12013 Ret Own m Consider using a maximizer savings strategy to reduce any excess RRSP contributions and eliminate any unused deduction room Refer to Help Scenario Manager dialog box Strategies link Savings tab Page 36 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 2 To edit an existing savings strategy under Non Registered or Registered on the Savings tab select the Override option and then edit the savings strategy details 3 To add a new savings strategy under Non Registered or Registered select an account from the Choose Account menu and then click Add Savings Strategy Enter the savings strategy details 4 Under Analyze Goals click the education or major purchase goal link to return to Retirement details Under Goal Coverage note that the goal coverage for the education or major purchase goal updates Entering education transfer strategies Level 2 Note Transfers cannot be entered in the Current Plan scenario To model tran
72. n User Manual Level 1 and Level 2 Plans Analyzing client goals Lump Sum Needs Ongoing Needs Available Assets to Offset Needs Assumptions Results i Override Available Assets to Offset Needs Available Asset Override Im Copy Available Assets from Sarah s Assessment Realizable Assets 0 Existing Life Insurance Policies 0 Additional Life Insurance 0 Total Available Assets 0 Scenario Manager dialog box Survivor Income lt client gt link Available Assets to Offset Needs tab 8 Select the Override option to make changes to the value of any of the assets listed 9 Proceed to the Assumptions tab and review the data displayed there Lump Sum Needs Ongoing Needs Available Assets to Offset Needs Assumptions Results i Override Assumptions Inflation Rate 3 0096 Assumed Return Rate 5 0096 Survivor s Tax Rate 30 0096 Scenario Manager dialog box Survivor Income client link Assumptions tab 10 Select the Override option to make changes to any of the assumptions listed 11 Proceed to the Results tab and review the data displayed there Page 54 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Customizing what if scenarios Disability Income Level 2 The analysis method chosen in the Set Goals Disability Income category determines the available tabs in the Analyze Goals section of Scenario Manager m Goaland Expense Analysis method Uses the clients existing lifestyle expens
73. nario Plan Entering retirement scenario objectives To enter scenario objectives for the retirement goal follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link Retirement Eric s Retirement Age Veronica s Retirement Age Goal Coverage on pg KK 95 95 0 9 95 95 0 100 m m E Fixed Annual Retirement Expenses Discretionary Annual Retirement Expenses p 100 mJ 10096 Non Reg Add l Monthly Savings Current Monthly Savings Or 0 E 0 as of Nov 1 2014 Savings Settings eis Additional Lump Sum Savings WHAT ARE MY OPTIONS om s 2 B Scenario Reports v Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses Investment Objective Return Rates Investment Objective Investment Profile a Override E Pre retirement Retirement Pre retirement Current Rebalanced Taena WE TE ador ES 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 Scenario Manager dialog box Retirement link Objectives tab 2 To change the retirement age of the client or co client enter a positive or negative number in the Age field or move the slider bars The retirement age will be adjusted by that number For example to change the retirement age from 65 to 55 enter 10 in the Age field
74. nario for your clients plan you can recommend it Recommended scenarios apply to reports where the Recommended plan type is used For information on recommending scenarios see Recommending a scenario on page 18 All what if scenarios are created and customized in Scenario Manager To access it go to the Results section Analyze Goals category Scenarios page and then click the Edit scenario Plan Entering emergency fund scenario objectives To enter scenario objectives for the emergency fund goal follow these steps 1 In the Scenario Manager dialog box under Analyze Goals click the Emergency Fund link Emergency Fund Target Amount Savings Period Infl Add l Goal Coverage z u eman kabi u Qm 3 732 60 mo Jant2019 0 0096 100 Additional Monthly Savings Current Monthly Savings Go ren 0 SO as of Feb 1 2014 Additional Lump Sum Savings On 0 WHAT ARE MY OPTIONS B Compare Scenarios Objectives Asset Class Return Rates Asset Class C Override Cash Interest Dividends Capital Gains Tax Free Deferred Growth Total Standard Deviation 1 82 Scenario Manager dialog box Emergency Fund link Objectives tab Page 38 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 2 To override the target amount of the emergency fund use the slider bar to select an amount OR Select the Target Amount option and then enter a new amount 3 To overrid
75. nd 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 Capital Accumulation and Redemption Monte Carlo 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 3 If applicable enter the settings details and then click OK 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 To redisplay the report settings click Report Settings at the bottom of the report window To hide the settings again click Report Settings To generate a report or graph that you can print or distribute beside the PDF or Word button click the D 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 repor
76. nt NaviPlan assumes that the savings are directed to a non registered account which is created when the savings are entered The return rate is based on the suggested asset mix 3 To specify additional savings strategy details such as inflation rates and start and end dates click 5 Page 27 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Editing existing or adding new savings strategies Level 2 To edit existing savings strategies or to add new savings strategies for the retirement goal into the scenario follow these steps 1 In Scenario Manager under Modify Financial Data click the Retirement link then go to the Savings tab Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses Retirement Savings Consider using a maximizer savings strategy to reduce any excess RRSP contributions and eliminate any unused deduction room Refer to the Planning Assistant for additional details concerning the registered accounts Refer to Help for information concerning the maximizer strategy Infl Add l Start Date Nov 1 2014 Indexed By 0 0096 Eric Veronica Account Type Reg Add l Monthly Savings Reg Add l Monthly Savings RRSP or MAX Qommmm mm 0 Q 0 RRSP Spousal Sormag Qoe 0 QOQ s0 TFSA m 0 a MM 0 Scenario Manager dialog box Strategies link Savings tab 2 To increase reg
77. nt goals Customizing what if scenarios Long Term Care Level 2 NaviPlan allows you to customize a recommended long term care scenario for your clients financial situation and preferences Recommended scenarios apply to reports where the Recommended plan type is used To customize the long term care see the following sections m Entering long term care assumptions Level 2 on the next page m Entering long term care incomes and expenses on page 64 Page 62 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering long term care assumptions Level 2 To enter long term care assumptions in a what if scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Long term Care Client Co Client link and then go to the Assumptions tab Long term Care Client Benefit Amount Frequency Premium Gr C7 SO Daily v 0 mo Goal Coverage 10096 WHAT ARE MY OPTIONS B Compare Scenarios Assumptions LTC Incomes 8 Expenses Adjust Milestones David will enter LTC atage 75 inthe year 2045 CJ LTC period years 4 3 Assumption is that David dies at the end ofthe LTC period ROR on Surpluses amp Liquidations Total g 6 00 Applies to proceeds from liquidated assets Scenario Manager dialog box Long term Care link Assumptions tab 2 To override the age at which the client or co client will enter long term care select the option next to th
78. o to the Portfolio Variability Projection tab By default the Portfolio Variability Projection graph shows the scenario s compounded rate of return Page 20 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Scenario Probability Probability Portfolio Variability Projection Investment Capital the current plan year through to and including the year of last death Compound ROR O Annual ROR Isolate ROR Percentiles Show All Alternative 1 50 000 40 000 30 000 20 000 10 000 Rate of Return 0 000 10 000 20 000 2013 2023 2033 2043 2053 2063 2073 2083 Years 90th Percentile 10th Percentile 50th Percentile Assumed Rate of Return Total Probability Trials 150 CALCULATE The Portfolio Variability Projection graph illustrates the assumed rate of return each year for the actual plan the 10 percentile the 50 percentile and the 90 percentile from For the Annua ROR option the assumed rate of return is the weighted average deterministic rate of return for accounts available to fund the goal in each year The percentile rates of return are the weighted average random rates of return for accounts available to fund the goal in each year of the percentile s probability trial For the Compound ROR option the rates shown in the Annua ROR graph are now shown as standard compound annual rates of return CLOSE Scenario Probability
79. oals Customizing what if scenarios Insurance Level 1 NaviPlan allows you to customize a recommended scenario to meet the needs of your clients financial situation and preferences Recommended scenarios apply to reports where the Recommended plan type is used To customize the survivor disability or long term care scenario follow these steps 1 In Scenario Manager under Analyze Goals click the appropriate insurance goal link In this example we will look at survivor income Survivor Income Client Goal Coverage Return Rate Death Benefit Premium Calculate Pre retirement Retirement 10056 Ge Tm s0 SO KE J 6 0096 6 00 WHAT ARE MY OPTIONS B Compare Scenarios Assumptions OngoingExpenses Additional Annual Income Lump Sum Needs Adjust Milestones Sarah Overnde Age Date Survivor Retirement Age LJ 65 May 2042 Survivor Life Expectancy LJ 90 2067 ROR on Cash Flow Surpluses amp Liquidations Total Pre retirement 6 0096 Retirement 6 0096 Scenario Manager dialog box Survivor Income link Level 1 Plan Objectives tab 2 Usethe slider bar for Death Benefit survivor income Disability Benefit disability income or Daily Benefit Amount long term care to arrive at an optimal insurance amount or enter the amount 3 Enter the premium amount 4 Survivor income scenario only To override the rate of return used for life insurance proceeds under ROR on Cash Flow Surpluses am
80. ocedure only applies if the Goal and Expense Analysis method is selected on the Set Goals section Survivor Income category Client Co client Objectives page To enter the survivor s annual expenses at death in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the appropriate Survivor Income link and then go to the Ongoing Expenses tab Assumptions Ongoing Expenses Additional Annual Income Lump Sum Needs Annual Expenses Percentage of lifestyle expenses to cover 85 EDUCATION EXPENSES Additional Expenses ADD ADDITIONAL EXPENSE Click the Add Additional Expense button to create a new row Scenario Manager dialog box Survivor Income link Level 2 Plan Ongoing Expenses tab 2 To change the default percentage of expenses to cover at death under Annual Expenses select the Percentage of lifestyle expenses to cover option and then enter a new percentage 3 To change the percentage of education expenses to cover at death click Education Expenses Page 46 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Education Expenses o Select the checkbox beside the education goal to override the percentage ofthe education expense that is expected to continue after the death ofthe client or co client Education Goals Number Annual 96 to Override Description Name Start Age of Years Amount Cover i University Education Jeremy 1
81. on Scenario Manager allows you to create and compare multiple scenarios side by side without having to create duplicate plans Once you have an appropriate scenario that you can apply to your clients plan you can mark it as the Recommended Plan Recommended scenarios are included in client reports By default the Scenarios page displays the Current Plan scenario which cannot be edited in the Scenario Manager dialog box as well as the Recommended Plan scenario current plan with suggested asset allocation The Current Plan scenario represents the plan that is open whereas the Recommended Plan scenario is generated by NaviPlan and uses the suggested asset mix You can create as many alternative scenarios as you like but only one can be marked as the Recommended Plan scenario In this chapter Comparing scenarios 2 aa 11 Understanding scenario differences in Level 1 and Level 2 Plans cece cece 13 Adding Alternative Plan scenarios 222 22 s ccc eececeeceeceeceececeeseeseeees 14 Achieving goal success and viewing goal coverage u a 15 Achieving goal success in a scenario a 15 Viewing goal coverage for other goals aaa 17 Comparing and recommending scenarios _ a 18 Comparing scenarios for an individual goal a 18 Recommending a scenario 2 22 2 sss lr ceceeseececeeceeceeseeseseeseeees 18 Determining scenario probab
82. onclusion Appendix Scenario Probability Assumptions Important Terminology Disclaimer _ Delivery Acknowledgement Select All Select None MONA E E E DOK ISI IST S O S ES S amp O ES ES IS Save as Template Select Document Sections dialog box 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 To save 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 Settings 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 Online on page 83 Note In NaviPlan Offline you may have to click Refresh to update the Status column Page 80 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Preparing custom text for reports
83. or year you want the reports to display The adjacent field updates automatically 6 To override the return rates used for the disability income scenario select the option under ROR on Disability Insurance Proceeds Surpluses amp Liquidations and then enter the pre retirement and retirement return rates Page 56 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Entering ongoing expenses during disability Level 2 This procedure only applies if the Goal and Expense Analysis method is selected on the Set Goals Disability Income Client Co client Objectives page To enter the survivor s annual expenses during disability in the Recommended Plan scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Disability Income Client Co Client link and then go to the Ongoing Expenses tab Assumptions Ongoing Expenses Additional Annual Income Lump Sum Needs Annual Expenses Percentage of lifestyle expenses to cover 10096 EDUCATION EXPENSES Additional Expenses ADD ADDITIONAL EXPENSE Description Amount Frequency Start Date End Date Infl Actions Additional Expense 0 Monthly v Jan 1 2014 m Ret Client m v Scenario Manager dialog box Disability Income link Ongoing Expenses tab 2 Tooverride the percentage of lifestyle and medical expenses covered during disability under Annual Expenses select the Percentage of lifestyle expenses
84. os apply to reports where the Recommended plan type is used To recommend a scenario for a goal go to the Scenarios page and then click Recommend Plan Current Plan Recommended Plan Alternative Plans Review Current Plan Edit Recommended Plan Edit Alternative Plan Alternative 1 Alternative 2 v Recom MEND Delete Results section Analyze Goals category Scenarios page showing top of the Scenarios section only A goal can only have one recommended scenario You cannot recommend the Current Plan scenario Page 18 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Determining scenario probability Level 2 Plans Note The Monte Carlo module must be included to perform scenario probability analyses The traditional planning process analyzes one possible outcome of the clients plan which assumes that the accounts will always earn their stated return rates While return rates usually average out in the long run in the short run they may be higher or lower than average Probability analysis projects the scenario multiple times and randomizes account return rates according to their standard deviation for each trial The goal success of each trial may change due to asset performance The goal success of each trial is plotted on probability graphs To determine the likelihood that your clients will meet a particular goal follow these steps 1 Go to the Results section Analyze Goals
85. overage progress aaa 66 Tracking net worth and cash flow projections Viewing goal coverage progress 66 Using the Planning Assistant 222 ess essel cee eee e cece ceeeeeeeeeee 67 Opening the Planning Assistant _ 2 a 67 Viewing and or printing the Planning Assistant reports sss m anaana 68 Using reporting options in NaviPlan _ 2 22 22 aaa 70 Generating stand alone reports and graphs 22 222 aaa 71 Using Next Gen Reports 2 22 2 aa 74 Working in Next Gen Reporting aa 74 Creating a new report with Next Gen Reporting a 75 Creating a new template with Next Gen Reporting aa 76 Using a template to create a report a 76 Adding custom content to a report a 77 Converting Next Gen reports to Microsoft Word output ss err lll 77 Generating client reports 2a 78 Preparing custom text for reports 81 Managing quick picks for user defined text sss sss RlRrlrrrlllll 82 Adding user defined text to Next Gen reports s ss eee cece eeeeeeees 82 Using the Client Report Monitor Online 0 III La oaa 22a 83 Adding notes for your own personal use _ 2 22 22 ss s eee cece eeeeeeeees 84 Page 65 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Viewing goal coverage prog
86. p Liquidations select the option and then enter a new return rate 5 Long term care insurance scenario only Select the Additional Daily LTC Expenses option and then enter the daily expense amount that is to be covered 6 Under Goal Coverage note how your changes affect the Goal Coverage graph Page 43 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Customizing what if scenarios Survivor Income Level 2 The analysis method chosen in the Set Goals section Survivor Income category determines the available tabs under Survivor Income in Scenario Manager m Quick Assessment method Calculates the clients need for additional insurance on the basis of a simple comparison of their needs to their available assets m Goaland Expense Analysis method Uses the clients existing lifestyle expenses and goal information to define their insurance needs m Income Coverage Analysis method Uses the clients income to estimate the anticipated expenses during the survivorship period NaviPlan allows you to customize a recommended survivor income scenario for your clients financial situation and preferences Recommended scenarios apply to reports where the Recommended plan type is used To customize a survivor income scenario complete the following procedures based on the method used or special circumstance Note The procedures available depend on which analysis method is selected on the Set
87. r you would like Tip You can quickly select all report pages on the Selected Pages panel by clicking the Check All link 5 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 Expand EL enlarge the panel Page 75 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Creating a new template with Next Gen Reporting Follow these steps to create a new template 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 T ou geo spa Report pages are displayed as tiles Select Add for each tile you want to include in your template To remove a tile select Remove m Report tiles are categorized by the following sections Summary Current Plan Proposed Plan and Alternative Plan 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 Tip You can view the report page tiles in summary view To switch views select mm Or HE from the View section 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
88. ress NaviPlan allows you to quickly view Current Results for clients projected net worth cash flow and goal coverage progress based on the information you have entered in the analysis so far It also recommends steps that clients could take to achieve 10096 goal coverage Current Results are available for the following goal types m Retirement m Survivor Income m Education m Major Purchase m Disability Income Note The actual goals that appear your screen will depend on the modules you selected on the Modules screen during goal creation Tracking net worth and cash flow projections Viewing goal coverage progress To track projections of clients net worth and cash flow or to view their goal coverage progress follow these steps 1 Goto the Quick Actions menu and select Current Results 2 Selecteither the Net Worth or Cash Flow tab to view projections of the clients financial situation 3 Select a tab for one of the goals for which you would like to view the coverage m The goal coverage graphs are interactive hover over a bar to the view the details for that particular year m You can click on labels in the graph key to hide or display the associated category from the graph 4 View suggested methods to achieve 10096 goal coverage under Options to Increase Goal Coverage 5 Once you ve reviewed your clients progress and the suggested options to increase coverage click Close to return to where you left off Current Resu
89. s amp Expenses tab 2 Tooverride the percentage of lifestyle and medical expenses to cover during the long term care and survivorship periods under Existing Annual Expenses select the Percentage of lifestyle and medical expenses to cover option and then revise the percentages NaviPlan assumes that the client will die at the end of the long term care period 3 Tooverride the percentage of income the client or co client will receive during the long term care period under Existing Incomes select the Percentage of income client co client expects to receive during LTC option and then enter a new percentage Note If the percentage of expenses to cover or expected income varies among expenses and income Blended appears in the field 4 To edit an existing additional long term care expense in the Recommended Plan scenario under Additional Long term Care Expenses select the option next to the expense OR To add a new long term care expense for the scenario click Add Additional LTC Expense and then enter the expense details Page 64 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Chapter 6 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 clients In this chapter Viewing goal c
90. s and expenses to the retirement scenario follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link and then go to the Incomes tab 2 Clicking the Incomes link takes you to the Incomes tab in the Cash Flow details section of Scenario Manager where you can add incomes 3 Go to the Expenses tab 4 Clicking the Existing Expenses link takes you to the Existing Expenses tab in the Cash Flow details section of Scenario Manager where you can edit existing expenses 5 Clicking the New Expenses link takes you to the New Expenses tab in the Cash Flow details section where you can add new pre retirement and retirement expenses Adding new retirement accounts and annuities to the scenario Level 2 To add new accounts and annuities to the scenario follow these steps 1 In Scenario Manager under Modify Financial Data click the Net Worth link and then go to the Accounts or the Annuities tab 2 Click Add Account Add Guaranteed Withdrawal Benefit Add Existing Annuity or Add Future Annuity Modeling a change in the province of residence during retirement To model a change in the province of residence for your clients during the retirement period follow these steps General Tax Details Future Province of Residence Average Tax Rate Future Province of Override Residence Effective Date Client Co Client Dependants Alberta Ret 1st 20 0096 20 0096 0 0096 Scenario Manager dialog box A
91. select the Investment Objective option next to the profile and then select a different profile The Return Rates fields update automatically The default investment profile for the plan is defined on the Plan Management section Asset Allocation category Profile page 8 To override the return rates for the scenario select the applicable Override option and then enter new return rates Entering additional savings for the education or major purchase goal scenario To enter additional savings for the education or major purchase goal scenario follow these steps 1 In Scenario Manager under Analyze Goals click the applicable goal link 2 Use the slider bars for Additional Monthly Savings and Additional Lump Sum Savings to arrive at an optimal savings amount or enter the amount NaviPlan assumes that the savings are directed to a non registered account which is created when the savings are entered The return rate is based on the suggested asset mix 3 To specify additional savings strategy details such as inflation rates and start and end dates click and then enter the additional details in the dialog box that opens Editing existing or adding new savings strategies Level 2 To edit existing savings strategies or to add new savings strategies for the education or major purchase goal into the scenario follow these steps 1 In Scenario Manager under Modify Financial Data click the Strategies link Savings Debt Modificatio
92. ser Manual Level 1 and Level 2 Plans Analyzing client goals Lump Sum Needs Ongoing Needs Available Assets to Offset Needs Assumptions Results v Override Lump Sum Needs CJ Lump Sum Needs Override ia Copy Lump Sum Needs from Susan s Assessment Mortgage Principal 0 All Other Loans 0 Education Goals 0 Emergency Fund 0 Final Expenses burial probate etc 0 Any Additional Needs 0 Total Lump Sum Needs 0 Scenario Manager dialog box Survivor Income client link Lump Sum Needs tab 3 Select the Override option to make changes to Emergency Fund Final Expenses burial probate etc as well as Any Additional Needs 4 To make changes to any remaining fields select the Lump Sum Needs Override option 5 Proceed to the Ongoing Needs tab and review the data displayed there Lump Sum Needs Ongoing Needs Available Assets to Offset Needs Assumptions Results C Override Ongoing Needs ADD ONGOING NEED Annual Ongoing Needs are 0 for 0 years PE You require 0 to meet your calculated ongoing need Scenario Manager dialog box Survivor Income client link Ongoing Needs tab 6 Select the Override option to make changes to any of the ongoing needs periods m Use the calculator to have NaviPlan help you determine your clients needs using the Ongoing Needs dialog box 7 Proceed to the Available Assets to Offset Needs tab and review the data displayed there Page 53 of 93 NaviPla
93. sferring assets from one account to another follow these steps 1 In Scenario Manager under Analyze Goals click the applicable goal link and then go to the Transfers tab Under Transfers existing transfers appear Objectives Transfers Transfers CU Transfer Source Destination Account Amount Transfer Pre Tax Account Account Details S or 3s Date mu Contrib Pay Taxes From Actions Savings lv e 0 Feb12014 m Cash Flow x Scenario Manager dialog box Education link Transfers tab 2 Under Transfers select the source account you want to transfer funds from and then click Add Transfer Strategy 3 From the Destination Account menu select the account you want to transfer funds to and then enter the dollar amount or percentage of the source account you want to transfer 4 Enter the date when you want the transfer to occur Adding new education or major purchase accounts to the scenario Level 2 To add new accounts to the scenario follow these steps 1 In Scenario Manager under Modify Financial Data click the Net Worth link and then go to the Accounts tab 2 Click Add Account Page 37 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Customizing what if scenarios Emergency Fund NaviPlan allows you to customize existing emergency fund scenarios to help meet the needs of your clients financial situation and their preferences Once you have an appropriate sce
94. ssumptions link Tax Details tab 1 In Scenario Manager under Modify Financial Data click the Assumptions link 2 Click the Tax Details tab 3 Select the Override option and select the state to which you clients intend to move from the Future Province of Residence menu 4 Additionally if the province to which your clients intend to move has a different rate of taxation you can enter the new rate into the Average Tax Rate field Page 34 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Customizing what if scenarios Education amp Major Purchase NaviPlan allows you to customize existing education or major purchase goals within scenarios to help meet the needs of your clients financial situation and their preferences Once you have an appropriate scenario for your clients plan you can recommend it Recommended scenarios apply to reports where the Recommended plan type is used For information on recommending scenarios Comparing and recommending scenarios on page 18 All what if scenarios are created and customized in Scenario Manager To access it go to the Results section Analyze Goals category Scenarios page and then click Edit scenario Plan Entering education or major purchase scenario objectives To enter scenario objectives for the education goal follow these steps 1 In Scenario Manager under Analyze Goals click the applicable goal link 2 Education goal only If applic
95. steps to create a new report 1 From the Select Report page select Start a New Report 2 Use the Select a category menu to display a list of report pages for each category 3 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 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 pages are numbers oriented and often contain projection tables m Report pages display data for their section For example The Cash Flow Surplus Deficit report page will display different data for the Current Plan than when selected for the Proposed Plan Tip You can include up to two Alternative Plans in a report 4 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 orde
96. t To duplicate the report or graph click Duplicate NaviPlan creates a duplicate and displays it next to the original in the same window To generate a report or graph from within an open stand alone report or graph window click Report Page 71 of 93 Report categories Favourite Reports NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 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 on a 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 curr
97. th 4 827 709 Analyze Net Worth Results section Analyze Goals category Scenarios page Edit Recommended Plan button Scenario Manager dialog box Summary details The left side of Scenario Manager has the same two categories Modify Financial Data and Analyze Goals Clicking any of the links under these headings changes the information displayed on the right For example to see retirement goal details under Analyze Goals click the Retirement link Scenario Manager has tabs for each plan shown on the Scenarios page You can quickly compare the current recommended and alternative plan details by clicking the other tabs Only the recommended and alternative plan details are editable On the Recommended Plan and Alternative Plan tabs you can implement various planning strategies into the plan to solve goal shortfalls manage cash flow etc Page 12 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Understanding scenario differences in Level 1 and Level 2 Plans In a Level 1 Plan you can analyze fairly simple What if scenarios using the Scenarios page and Scenario Manager In a Level 2 Plan more complex What if scenarios can be analyzed For example the Scenario Manager Retirement section for a Level 2 Plan has additional tabs Transfers Redemptions Liquidation Order Bucketing Annuitization Incomes and Expenses that allow you to modify the What if scenarios Retirement Go
98. tirement Distribution Summary Default Template v GENERATE Financial Needs Analysis Current Template v GENERATE Results section Client Reports category Client Report page 2 Toinclude 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 Select the alternative scenarios to be included in the reports from the lists below Scenario Current Recommended Proposed Scenario Name Current Plan Alternative 1 Alternative A Alternative B Include Alternatives In Reports dialog box 3 If applicable select a template to use for the report 4 Click Select Document Sections for the report you want to generate Page 79 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Select Document Sections Default Template o 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 C
99. to cover option and then enter a new percentage Note If the percentage of expenses to cover varies among expenses Blended appears in the field 3 Tochange the percentage of education expenses to cover during disability click Education Expenses Education Expenses e Select the checkbox beside the education goal to override the percentage ofthe education expense that is expected to continue after the death ofthe client or co client Education Goals Number Annual 96 to Override Description Name Start Age of Years Amount Cover jj University Education Jeremy 18 4 10096 cue Scenario Manager dialog box Disability Income link Education Expenses button Education Expenses dialog box Page 57 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals 4 For each applicable education goal select the option next to the goal and then enter a new percentage in the to Cover field 5 Click OKto close the Education Expenses dialog box 6 To edit an existing annual expense previously entered in the Set Goals category under Additional Annual Expenses select the option next to it and then edit the expense OR To create a new annual expense under Additional Expenses click Add Additional Expense 7 Enter the expense description and annual amount of the expense 8 Repeat steps 2 8 until you ve finished entering all additional disability expenses Entering additional annual income durin
100. trategies 23 goals reports 72 graphs generating 71 H Help accessing 9 l income coverage analysis 44 income tax reports 72 insurance reports 72 insurance scenarios disability income Level 1 43 disability income Level 2 55 additional annual expenses 58 annual income needs 60 assumptions 55 goal and expense analysis 55 income available 61 income coverage analysis 55 lump sum needs 59 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Page 87 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals ongoing expenses 57 long term care Level 1 43 long term care Level2 62 assumptions 63 LTC incomes and expenses 64 survivor income Level 1 43 survivor income Level 2 44 additional annual income 47 annual income needs 48 dependent needs when both clients die 50 goal and expense analysis 44 income coverage analysis 44 lump sum needs 48 ongoing expenses 46 survivor s income 49 liquidation strategies 29 long term care scenarios Level 1 43 long term care scenarios Level 2 62 assumptions 63 LTC incomes and expenses 64 M major purchase scenarios adding accounts 37 entering savings 36 transfer strategies 37 Monte Carlo 19 Monte Carlo reports 73 Page 88 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals N Needs vs Abilities report 72 net worth reports 72 notes adding personal 84 P phone support 9
101. ty and then enter the maximum percentages you want NaviPlan to convert For example if you do not want to sell more than half of the clients non qualified assets to fund annuities enter 5096 for that asset type By default non registered assets are available for the annuity b If you selected more than one asset type under Order of Annuitization select the order in which you want NaviPlan to sell the selected asset types You can select Use assets in the following order for annuitization and then select an annuitization order from the menu or you can select Use scenario liquidation order settings for annuitization order and have NaviPlan use the liquidation order set on the Retirement Liquidation Strategies tab of the Scenario Manager dialog box c Click OK 5 Click the Review the results and assumptions link The Annuitize to Need Results and Assumptions report opens and displays the results of the strategy and the assumptions used in it Note If you made additional assets available for the annuity the clients may be able to cover a larger income gap To re estimate the income gap repeat the procedure Page 32 of 93 NaviPlan User Manual Level 1 and Level 2 Plans Analyzing client goals Defining CPP QPP and OAS Benefits Note If both the client and co client are retired in a joint plan the CPP QPP amp OAS tab is unavailable If only one client in a joint plan is retired the scenario options are only available for the
102. ty assets required to purchase annuities that provide income for needs starting at retirement An annuitization strategy can demonstrate the benefits of covering some expenses with a guaranteed annuity income stream instead of relying on market performance to provide enough growth to cover basic retirement needs This strategy can be of particular interest to clients who are near retirement or are already retired To enter annuitize to need scenarios follow these steps 1 In Scenario Manager under Analyze Goals click the Retirement link and then go to the Annuitization tab Objectives Savings Transfers Liquidation Order Redemptions Bucketing Annuitization CPP QPP amp OAS Incomes Expenses Annuitization J Override current annuitization settings Review how applying an annuitize to need strategy can affect the scenario 1 Estimate the additional income gap to cover 0 yr in future dollars Estimate Income Gap Scenario Manager dialog box Retirement link Annuitization tab 2 Select the Override current annuitization settings option 3 Toestimate the gap between expenses and fixed incomes during retirement click Estimate Income Gap a Specify whether the income gap should be expressed in future dollars or in today s dollars b Use the graph to determine the size of the income gap that should be covered by annuity income and then enter that amount in the Estimate the additional income gap to cover field c In th
103. uick Actions button near the upper right corner of the NaviPlan window and select Planning Assistant from the menu Planning Assistant e Settings Current IP 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 dynamicaly 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 Pre Retirement surpluses and deficits This information is useful in determining the impact that the clent s goals and associated savings plans wil have on their cash flow You should be aware that the syste

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