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RetireNow v. 2001.01 User Manual

1. ecce eceeeeeeee nennen nnne 47 WED NAVIGATION ciii aea suse esu Cage Hu scu iu vau EE E EV V eHEEE ask EE Aa aariaa 48 FODICS uini HII CU decns Id DE Dorn C E EEr E D a6 49 What Will We Do TOGAY uisi ixeccxp E ssatsuE eov ERR aa 49 ase SUIS ave iene cisex vs GassaeskaudsasunwevssUruscus dusE CES usi a EN ORE TUE U MrRsE EMEN V UEM EU I d WEEaE EE Rua MS 50 What is ScenarioNOW 2 eee nene uauuuuuuuuuuuuuuuusRRRERRRRRRRSRSREERERRRRSRSSSEEEEENSSESSEREEERRAE 50 Advisor Web R SOUICES o none nuuauuuuuuuuRRRRRRRRRRERRERRRRESSEREREENSSSSSEEEERENERESEEERERRAE 51 PreSentaloris uccisssveseEsMc Aa aan 51 ScenarioNOW LIHHKS oos ocuuu enu Ev EwVESaE TEE uEWHERaESUWWEFEV E Eau AAEN ANANE 52 GIOSSANY iintsi sis ur ves s ae su San UTUEEaD oi dea ogU ONU Cow saU EU DIE Rees wd eius 52 Chapter Osnsess VE ERI IE RESN RAMEE TI EEBNENIESENENIN RE DS Discovery Section eeeeeeeee eene enne nennen aaa aaa anna anna aaa a annua 53 Discovery Home Page ondas o V xoc c n ax da a utn Oo Y Re 54 General Navigation Tips eeeeeeeeee eee 54 Personal Informallion oasis xta XR DER CUR EY EY ERN Oa Fea ER EU A EDO RR CE GS 56 Employment lI nformation cecceeeeeeeee nennen nenne 58 Income USGS iiie eei 59 Income Uses Category Level 5osvons vereor nnl dnce e ee o nC C E E CR C 59 RetireNow
2. 1 FortheClient a WhatWill WeDo Today b CaseStudies 2 FortheAdvisor What is ScenarioN ow Advisor Web Resources Presentations ScenarioN ow Links Glossary 0oooco What Will We Do Today What Will We Do Today is a presentation that describes the RetireN ow planning process Use this presentation to explain to a client about planning with RetireN ow and its ease of use as compared to conventional planning methods To view the presentation 1 Click the What Will We Do Today category 2 Click theflashing arrow to start the presentation 3 Click Prev and Next to navigate through the presentation NEXT gt CEN ARIC What Will We Do Today 2 49 RetireNow Users Manual Case Studies The Case Studies category provides stories with numbers for the advisor to view and present to a dient To access Case Studies l CI ick on the Case i CASE STUDY HOME Studies category Will the Andersons Retire re The And t to retire next year Bet thei 2 PI ace yOU r mouse over a 2 Arnie ane DUE TR ing d even do it pi ctu re to get a short What level of lifestyle can they have ue Profile description of that case E r Age David S8 Manne 56 Home Valuer 375 000 study x Status Married 29 years SOE 650 000 3 Click on the picture to b ciem S boys apes 22 26 eg 1 and 23 Retirement Pension view the case study Main Concern 25 000 4 For moreinformation B aiid wedi ie yo E toca
3. ANU BWNE RetireNow Users Manual Setup Thesetup menu found on the menu bar at thetop of the screen dictates how you will enter information in certain sections of RetireN ow Select New File Start up Mode TheN ew FileStart Up mode dictates how information is entered in RetireN ow Select either Itemized mode or Summary mode This selection will be the default method of data entry whenever N EW files are created Itemized mode Allows data to be entered at an itemized level inside each of theinput categories of the Discovery section Up to 20 items can be entered in each input class A Category or Class of inputs can be entered in Itemized M ode when the checkmark is placed in the itemize box next to the input class and when a checkmark is placed next to Calculate for a Category total Summary mode Allows data to be entered at either a Category or Class level Data entered in this manner represents a summary or total figure for a category or input class A details button appears next to the input where additional information growth and inflation rates etc can be entered Also note that a data input screen in summary mode will betitled Schedule at the top of the screen input Definitions Data inputs within the Discovery section are referred to in 3 different ways Category describes a section of data inputs Income Uses is an example of a Category Class describes a grouping of inputs inside a Category Spe
4. Amount Over Exclusion figure will check against available Unified Credit amounts for the client Amounts inputted here are assumed to be over the annual figure that the client could gift free of any gift taxes If any of the Unified Credit is available to the client the remaining balance will be reduced accordingly and the over exclusion gift will be passed free of tax Otherwise the gift amount over exclusion will be taxed at the applicable gift tax rate Gifted monies are deposited in the Gift Account Click the Fill All Years button if you wish to have the value in the Amount field and the value in the Inflation Rate field selected for the entire period of analysis OR a Click the Fill Certain Years button to have the value in the Amount field and the value in the Inflation Rate field placed for a specific period b Enter the client s age for the first year of the desired specified period in the Start Age field c Enter theclient s age at the last year of the desired specified period in the Stop Age field Note Either or both of the Amounts or Inflation Rate fields can be edited for any one year You can introduce any economic dimension in this way throughout all of the data inputs in the program The Y ear column indicates ew Amount Over Inflation the year of analysis Amounts Exclusion Rate TheAge column indicates the age of the client during a specific year Specific entries for specific years may be entered in the
5. as house vacation home farm rental property etc in this section 3 Click the Details button if you wish to model transactions and growth rates by year Total 4Calculate 2 3 If you clicked the details button to mode Real Property please refer to the Details Button above Real Property I tem Level To enter data at the Real Property Item level 1 1 Place a checkmark in the Total Calculate box by clicking the box 2 Click the ltemize Assets box Click the Add button to add an entry OR click the Edit button to change a previous entry OR click the Delete button to delete an entry OR click the Primary Residence a OK button to save all entries and return to the Real Property screen 5 If you clicked the Add or Edit button enter the detail information for the item 6 Enter the name of the item in the Name field 7 Theremaining fields to enter are the same as those described in the Details Button for the Real Property Category Class Please refer to the Details Button Total OV Calculate 0 All Class and Item data entry operates the same for the Real Property Class Primary Residence Enter the value of the client s primary residence in this section To begin modeling the client s primary residence please refer to Real Property Category Details Button for entering detail data for a Class and Real Property Item Level for entering detail data for a Class Item Note You should p
6. 1 2 File Edit Setup Online Help BD NE aL CINE je acr 3 oNet Worth Cash Flow eWealth Transfer 3 800 000 Net Worth Comparison 3 400 000 3 200 000 2 500 000 Comparison Name Comparison 2 600 000 2 400 000 Select the scenarios to ranae compare 2 000 000 Base Scenario Scenario 1 600 000 Scenario2 1 400 000 1 200 000 1 000 000 800 000 IC EN eee eae eS aT 4 2Calculate Comparison riens L I LU I j 2001 2003 2006 2009 2012 2015 2018 2021 7 56 58 61 64 0 3 76 67 Year Age BS Base Scenario B Scenario1 GB Scenario2 v Help 100 RetireNow Users Manual Reports To create and view report in Comparison l Select the Comparison tab 2 Click the Reports tab above the display window 3 Click acategory tab 4 Click Calculate Comparison Results Not Current Press Calculate may be displayed Click the Calculate Comparison button if you see this 1 2 File Edit Setup Online Help Revie f Home 3 oNet Worth eCash Flow eWealth Transfer Comparison Name My Comparison Select the scenarios to compare Base Scenario 4 2 Calculate Comparison Help Discovery Solutions Action Base Scenario 4 958 898 4 946 488 4 961 762 5 006 843 5 083 519 5 193 876 5 439 958 5 717 585 6 009 896 6 317 760 6 619 823 6 937 962 7 273 273 7 626 947 8 000 276 8 435 039 8 886 773 9 366 716 9 876 974 1
7. Actian Discover Scenarios Solutions Acton etup nline Help Personal Infarmatian Employment Information Income Uses lancome Sources Real Property 1 Select Discovery on the Edit drop down list 2 Select the category Non working Assets Business Assets Investments Retirement Plans Insurance Edit Scenarios Edit Scenarios provides you with a list of Scenario tasks File Edit Setup Online Help Discover F View Scenario Results 1 Select Scenarios on the Edit drop down list 2 Select the task Select Scenario Solutions Action Create New Scenario Delete Scenario View Scenario Results View Scenario Results will take you to the Scenarios home page See Chapter 7 How to Use the Scenarios Section for further information 1 Select and click View Scenario Results on the Edit drop down list Select Scenario Select Scenario provides you the ability to select a scenario to load as the current scenario See Chapter 7 How to Use the Scenarios Section for further information Select a Scenario Select a Scenario to Edit 2 Base Scenario l Click Select Scenario on the Edit drop down list Edit 3 2 Select and dick the scenario yOU wish to edit Current Scenario Base Scenario 3 Click Edit to load the highlighted scenario as the current scenario OR click OK to exit OK without loading a new curr
8. Fax 815 397 4536 Email support scenarionow com For questions on technical issues such as installation error messages and Windows issues please call Brentmark Software Telephone 407 306 6160 Fax 407 306 6107 Email support brentmark com Installation To begin RetireN ow you must first install the software Follow these steps to install RetireN ow 1 Placethe CD in your CD ROM drive 2 Click Next when you see a background page with a Welcome box 3 Click Next when you see the Choose D estination Location box to install RetireN ow in the default directory of C Program Files ScenarioN ow RetireN ow 4 f you wish to install RetireN ow in a different directory and folder click Browse and select the location Click N ext when you seethe Start Installation box to begin installation If you wish to create a shortcut for RetireN ow click Y es You will then be asked if you want to install the Macromedia Shockwave and Flash players Click Yes to install these components they are required to view all shockwave and flash content within the program Mou If theinstallation program does not automatically start when you insert the CD you can manually start the installation process by following the instructions below Click the Windows Start button Select and dick Run Click Browse Select and click your CD ROM drive Click on the Setup Files shortcut Begin with number two in the prior menu for installation
9. Slideshows 2 Are you interested in some of the benefits related to charitable Charitable Trust Important Please Read giving 3 Would you like to enjoy the current financial benefits of your Charitable Remainder Annuity Trust donation 4 Would you like to set up an enduring legacy Charitable Foundation re en lt PREVIOUS CONTINUE gt SCENARIC VIP 20 RE 4 Status Done Planning Your Retirement There are four subsections in Planning Your Retirement 1 Your Retirement Lifestyle 2 Family Considerations 3 Charitable Inclinations 4 Contingency Planning Managing I nvestments There are five subsections in M anaging Investments Risks amp Rewards Defining a Time Horizon Income Tax Considerations Asset Allocations Retirement A ccount Rules UB wuwNrmBD ET RetireNow Users Manual Planning Your Legacy There arefour subsections in Planning Y our Legacy l CoreFoundations 2 Transferring Assets Efficiently 3 Living Trusts 4 Naming Beneficiaries Estate Tools There are five subsections in Estate Tools Estate Taxes amp Lifetime Exemptions Insurance amp Liquidity Generational Trusts Charitable Trusts Family Limited Partnerships U BWN D Product Solutions Product Solutions showcases products and services that your firm offers to clients This category can be customized to include your product names logos marketing materials prospectuses investment performance data
10. Users Manual Income Uses Details Button ee eieee eere r eere e enean nnn u nnne n nana ananas 60 Income Uses Class Level ciesnwik nuni Rid eX RE YR OODUER W RDE OCCORRE TAT CR RD 62 Income Uses Item Level aisaciak Ri ink ERR ROG ORG DACH a OE RH RET D RR ON RD 62 clearer 63 Casi GITES uicina ibd oo OG OO ROROn DOR COGO ORG UO ORO HO OR RR ERE RR RR CR RN 63 INSUFANCE Premiums ike in anori e dd ER RE B Df ln OR RCM RR aiara ain 65 ONET scoaecouiatisi tuU rS ESSERE TN UXERUISIMEFESESU QS CU QVE REIS INE ESI KR UNE ENS AE EFE C FENIENUN VEA E 65 INCOME SOUNGCOS erm 65 crece Ec el gat 66 PENSION ssictssisavscsucsadenucdecnatiuhsnvanusseusscssdusucevasubeavsenssagusdndsiusaccuacstevacnneseubeasiineuanian 66 WOK issus kn EEREERREI RUDI MO RRGOD URN NS n URDU RR UR TS CR C RR ER ACD RR 66 Al grecfteM p H 66 Tax Credits uie iva UR EREEEL ORE EKER CERO DO CURRERE ERAS E UD RE E EUR ERE 66 PIANOS ioseph de or Ed ua xa REO CRACK AE ERI OE CDL RD RN RE 66 Deferred CompensalloOliassenokis di nin ore OOKR RC ORO a CREE X ERR OC RR C IDEE 66 P reae 67 Long Term Care usi iiio asu casus cana cu Ren cu cpu des cEses Pa daa CI MEN MEE M VERIEFE PM Cea UNMENE MN MF MUENES 67 OUDGF iiisseirexa ERE EXAKESEREAEERERERE DOPO GERA R SR EI CER DC ERU AT W Ew RC aaa RR ERR 67 Real Property iai D een ERA XXVOCOYRDOY ER RERR E
11. family 75 000 year Their Story click a Their Story A discussion of the client s Financial picture 4a b Financials Includes assets and liabilities 1 View Income Statement 5 Thearrow atthetop 5 6 left corner of the case cM study will take you to M nds the previou sly viewed ey Cash 4 500 Mortgage on Home page Savings Money Market A 42 000 Other Loans Payables Automobiles 30 000 Credit Cards 6 TheCase Study Home N 375 000 other Liabilities button at the top right e 500 000 THERE IRA 401k Maxine 150 000 SO Der of the Case study Stocks Bonds David 100 000 Total Liabilities 0 00 will take yOU to the Case 7 Stocks Bonds Maxine 50 000 a j T z T Net Worth Study main page B ee eona roPerty 200 000 1 461 500 00 Loans Notes Receivable 0 Business Assets 0 _ Total Assets 1 451 500 4b 1 What is ScenarioNow What is ScenarioN ow is a brief presentation about the ScenarioN ow VIP process 50 RetireNow Users Manual Advisor Web Resources TheAdvisor Web Resources category provides a list of web links that ScenarioN ow believes will beuseful to the advisor This section is completely customizable by the advisor and links may be added or deleted 1 Connect to the Internet 2 Click the Advisor Web Resources category 3 Click on the desired web site Presentations This category provides a series of Seminar
12. Enter or change if desired the minimum balance which will stop the liquidation in the Minimum Balance field 5 f you wish to start or change LLL liquidation on an as needed basis Minimum Balance dick the Take as N eeded button Liquidation Restriction 6 If you wish to start or change 5 Take as Needed liquidation at a specific age click 9 Don t Touch Until Age the Don t Touch Until Age button Then enter the age Save Cancel 7 Movetheltemized asset up or down in the order desired by using the Up arrow and Down arrow buttons 8 Click Saveor Cancel I nvestment Class Liquidation Method On theLiquidation Order Form window if you select Investment Class as the Liquidation Technique the Current Liquidation Order lists the Investment classes that contain liquid assets To set up the liquidation order for Investment Classes follow the steps in Moving the Order of an Asset If you itemize categories in the Investments or Retirement Plans sections you can arrange the Liquidation order and modify the Minimum Balance and Liquidation restrictions for each item by selecting and clicking it If you did not itemize you will not be able to modify the Minimum Balance and Liquidation restrictions and No Assets to Show will be displayed in the liquidation order window Steps to order the assets within those categories that were previously itemized in Discovery are the same as those used for Taxability Liquidation M etho
13. Investments Item Level section for entering detail data for a Class Item Equities Enter the value of all equity stock investments in this category Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item 81 RetireNow Users Manual Tax Deferred Enter the value of all tax deferred investments in this category except retirement plans IRA s and stock options held inside retirement plans Any savings vehicle such as a deferred compensation plan in the accumulation phase that postpones taxes on interest dividends or capital gains can be entered here Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item Other Enter the value of all other investments in this category Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item Retirement Plans Enter the value of all retirement plans owned by the client in this section Entry in the Retirement Plans category is similar to entry in the Investments category except for the Ben Designation button in the Details and Itemized screens Note RetireNow is up to date with the new IRS minimum distribution calculation r
14. Retirement Plans OR highlight the desired subject with Insurance your cursor and click Display OR click MM Cancel to exit Online Help Print Cancel Help Search For Help On 2 Search For Help On enables you to search the onl j ne hel p fi les Help Topics ScenanoNow Contents Index Find L Sel ec and cl ick Search For H el p On 1 Type the first few letters of the word you re looking for on the Help drop down list 3 heu o 2 CI ick the ndex tab 2 Click the index entry you want and then click Display 3 Enter your search criteria IEEE arta Available Reports armatting Reports Oveniew Item Schedules Report Options Retirement Accounts Retirement Plans HetireM ow VIP Software Training S amp P Values Save ScenariaN ow i 4 As you enter the search criteria context sensitive matching topics will be displayed Double click the topic you wish to see OR highlight the desired topic with your cursor and click Display OR click Cancel to exit online help Scenarioh ow Links ScenariaM ow Product Line Scenarios Comparing Creating Print Cancel 29 RetireNow Users Manual Help For Current Screen Help For Current Screen immediately displays the online help for the RetireN ow screen you are viewing 1 Select and dick Help For Current Screen on the Help drop down list to display help on the current RetireN ow screen ScenarioNow Product Library ScenarioN ow Pro
15. Secondary Residence amp Secondary Residence AZ and they contain the exact information that you ve already entered You can manipulate any of these values from within this Data Tree Window 4 Ifa plus sign appears next to a category 5 Begin Balance the category has subcategories Click the plus Cost Basis Growth Rates sign to view the subcategories or items 5 You can edit the details of an item by double 8 Transactions clicking it amp Land 6 An Edit window appears to add the required data and information The data and 8 information entered is identical to your original inputs in the Discovery section 7 Some Edit windows will havea fill button Click the fill button to fill all or certain years Fil with the desired value Thefill choices here Year Old Amt New Amt work exactly as they did in the Discovery section Enter the values and click OK to save or Cancel to close the window without Saving your changes 8 Don t forget to click the Save button located at the bottom of the Scenario Data Tree Window task box to save your edits or Save Cancel Help Cancel to exit without saving Editing Amounts Editing Amounts Value to Fil IS Fill All Years Fill Certain Years Start Year 2001 Stop Year 2040 OK Cancel 93 RetireNow Users Manual Example Editing the Data Tree for Income Uses Y ou can edit Income Uses items to y
16. etc The organization and product categories can be customized to match your offerings ScenarioN ow provides the listing below as an example and therefore no actual products have been included Definitions of the various types of products are displayed inside each section and note that some of the sample content here can be viewed by clicking on theterm Thereare six subsections in the Product Solutions example e Annuities Debt Instruments Equities Funds Insurance Options Click on the plus sign to expand the category and display the sub categories Click the sub category you wish to view Place your mouse over aterm A box will appear with the definition You can turn the mouse over function on or off by clicking the Hints button in the upper left corner of the currently selected window U BWN PR 106 RetireNow Users Manual Glossary The glossary is a navigable tool that provides definitions of both technical and commonly used terms l Atthebeginning of the glossary is a linked alphabet bar Click on thefirst letter of the desired term Many of theseterms also include an imageto illustrate their meaning 2 Movethe mouse over the button labeled image to view theillustration which works the same way as the previously explained mouse over Home Print Glossary 1 A OB GS IDA RES MES LGS KEN EE Bd Ra e A SS DD BER OE ERE E82 EDS HUI ENS ME CD V S 2 401 k 4 qualified retirement plan into
17. parameters for 2 Click theltemize Taxability Liquidity button e Investment Class 3 Enter the minimum e Per Asset Liquid balance which will stop urrent Liquidation Order the liquidation in the Minimum Balance field 4 f you wishtostart 1 liquidation on an as 5 Tax Deferred needed basis click the 6 Other Investments Take as N eeded button 7 401 k 8 IRA 5 If you wish to start 9 Roth IRA liquidation at a specific 10 Stock Options age click the Don t 11 Other Retirement Touch Until Age button Then enter the age 6 Click Saveor Cancel Asset Liquidation Details Name Taxable Category Minimum Balance 9 8 3 Liquidation Restriction L8 Take as Needed 5 Don t Touch Until Age 42 RetireNow Users Manual If you itemize categories in the Investments or Retirement Plans sections you can arrange the Liquidation order and modify the Minimum Balance and Liquidation restrictions for each item by selecting and clicking it Order the assets within those categories that were previously itemized in Discovery 1 Select and click on thetaxability category you wish to set liquidation parameters for 2 Click theltemizeLiquidity MF Taxability Assets Liquidation Order Taxable Taxable Liquidation Order 3 1 First Taxable Item button 2 Second Taxable Item 3 Select and click the category 3 Third Taxable Item you wish to modify minimum balance and restrictions 4
18. 4 Click Save to save the selection OR click 0 69 Cancel to exit without saving the sel ection Cancel Help 35 RetireNow Users Manual Setup S amp P 500 Growth Forecasts S amp P 500 Growth Forecasts provides you with the actual Standard amp Poor s 500 Stock Index Total Returns for the last 40 years 1961 2000 For the 40 year range the Best 10 Y ears performance was identified which for these 40 years is the range from 1991 2000 The Growth Forecast choices are value going forward The Historical values reversed first year of simulation 2000 performance 21021999 and so on Best 10 Years First Best 10 year period is placed first Best 10 Y ears Second Best 10 year period is placed second Best 10 Years Third Best 10 year period is placed third Best 10 Y ears Fourth The best 10 year period occurs last N ote Coincidentally this is the historical result Thetable will roll over at the 41 year of a simulation and reference the original growth forecast choice and sequence the total return numbers appropriately Note S amp P 500 Growth Forecast modeling can be found in the Investment Retirement Plans and Insurance Variable Annuities only screens How Beta Affects I nvestment Returns The advisor applies this Beta factor about the asset if it is available If itis unknown it is always safe to enter a 1 For alower risk asset a valueless than 1 can be entered and for an asset that is higher ri
19. Enter the client s first name in the First Name field Enter the client s last name in the Last Name field Enter the client s birth date in the Birth Date field Enter the client s target retirement age in the Retirement A ge field Note This represents the client s Target Retirement Age and will trigger the Post Retirement income tax rate for this year and all remaining years as provided for in the Global Rates section of the Setup menu This figure may or may not be different from the tax rate in the client s working years AU BWN 56 RetireNow Users Manual E U X 00 N 13 14 15 0 Enter the client s gender in the Gender field Enter thefirst year of analysis in theFirst Y ear of Analysis field Enter the projected year of the client s death in the Y ear of Death field OR Place a checkmark in the Use Life Exp box to project life expectancy based on actuarial tables Enter the number of years you wish to analyze in the Years to Illustrate field OR 12 Click the icon to automatically fill the Years to Illustrate field with number T of years 40 If another client is to be included click the other client s information button and enter the information in the same format as above Note When two clients are entered they are assumed to be married For Estate Planning purposes at the death of the first spouse it is assumed that the first spouse has taken advantage of appropriate planning ve
20. Field Fil 3 Year Curr Exp New Exp 2 Click the Save button to save your entries OR click the Cancel button to exit the Schedule without saving any information 3 The Fill button can be used to fill all years or acertain range of years with the new policy expense rate Save Cancel Policy Expenses E dit Editing Policy Expense Rates Value to Fill 0 00 e Fill All Years Fill Certain Years Start Year 2001 stop Year 2040 OK Cancel 90 RetireNow Users Manual Scenarios Section The Scenarios section provides you and your dient with a graphical representation of their current financial condition It is the gateway to alternate financial possibilities or scenarios that you and your clients can create and compare against each other Y ou have the capability to create delete and edit the numbers and contents of up to 5 scenarios per client You can modify a scenario s numbers and updatethe cient fileimmediately This provides you the capability to instantly and interactively see the effects of the change All 5 or less scenarios can be compared to each other on graphs and reports to visually illustrate the pros and cons between the scenarios Scenarios and comparisons can be named and saved for future reference A scenario uses an initial or base scenario as a guideline The base scenario uses the information you first entered in the Discovery section Y ou can create 4 more scenarios in the Sce
21. File Edit Setup Online Help AAA Discovery Scenarios Solutions Selected Reports Net Worth Summary amp Print lag Net Worth Summary Cash Flow Real Property Activity EEE w Real Property Activity Print Preview Non working Activity ly Non working Activity Business Activity Print To File w Business Activity Insurance Activity lui Insurance Activity 4 Printer Setup Real Property Category Non working Category T Business Category Insurance Category E Itemized Real Property Itemized Non working Itemized Business Itemized Insurance Investments Retirement Wealth Transfer Sa er on tg Report Options Comparison Load Group Misc Select All Available Selected Printer HP LaserJet 4 Plus on LPT1 Note For all reports client years of death are highlighted in blue Available Reports Available report categories are displayed on the left hand side of the screen Clicking the desired category displays the reports within that category Types of Reports M ost of the reports are one of four types summary activity category or itemized e Summary Reports provide a general overview of a subject They are the most commonly printed reports Examples of summary reports include Net Worth Cash Flow Income Statement Wealth Transfer Asset Allocation and Asset Ownership e Activity Reports provide an overview of changes by major category For example it will illustrate growth withdrawals and
22. Fill J oint the item will be Fill All Years carried through until the STIS e Fill Certain Years death of the second person 2 Enter a value for the dient s annual QM mation spending habits in EET the Amount field OR leavethe entry made for spending in the previous screen OR a Click the computer icon to calculate future value b Enter the future Averages 4 00 Vee amount Clear Scheaue save MES 7 c Enter a growth rate d l Enter th e start ag e Calculating Future Yalue e Press the tab key on your keyboard to calculate the Present Value f Click the Use button to use the present value SS ae OR click Cancel to exit without using the value Growth Rate A Note This calculates the value today of a known value PRESE 60 we expect to receive in the future For example if we know that we ll need 100 000 at age 60 what is the value equal to that today assume inflation is 4 Present Value 85 480 2f 60 RetireNow Users Manual E O 00 N 12 0 g Ihe present value now appears in the Amount field 9 Click the Fill button to select the valuein the Tee Tatil 685 480 Fil A mount field and place it in the New A mounts column for the entire period of Inflation Rate 4 0075 Mau analysis ae s Fill All Years inflation Rete eld and dick the Fill button to aba nflation Rate field and click the Fill button to select the value in the Inflation Rate field
23. New Amounts field Specific entries for specific years may be entered in the A mount Over Exclusion field Adjustments in the inflation rate for a specific year may be made in the Inflation Rate column The Inflated Amount column displays the effect of inflation upon spending in a specific year Note This column is highlighted in yellow to draw the client s attention to the output here Key output columns are highlighted in yellow throughout the program 4 0 4 0 64 RetireNow Users Manual 13 Click the Save button to save your entries OR click the Clear Schedule button to clear your entries OR click the Cancel button to exit the Schedule without saving any information I nsurance Premiums Enter the annual amount of the life insurance premiums unless you chose to detail these in the Lifelnsurance section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Other Enter all other annual income uses in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item I ncome Sources The client s sources of income may be placed in the Income Sources section File Edit Setup Online Help AAA SNS a Home Scenarios Solutions Action Personal Information Income Sources Emp
24. OR click the Edit Delete button to change a previous entry OR click the Delete EIN button to delete an entry OR dick the OK button to save all entries and return to the Investments screen 4 f you clicked the A dd or Edit button enter the detail information for the item Enter the name of the item in the Name field 6 Theremaining fields to enter arethe same as the Details Button previously described for the Investments Category Class Please refer to the Details Button above Ul All Class and Item data entry operate in the same way for the every investment class Taxable Examples of taxable investments include items that pay taxable interest or dividends such as interest bearing bank accounts CD s Mutual Funds Corporate Bonds that are not tax exempt and Municipal and State issues that are not exempt from income taxes Any realized gains from sales or dividends are taxed at the Income Tax Rates as specified in the Global Rates section of the Setup M enu Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item Tax Exempt Enter the value of all tax exempt investments in this section For the purposes of RetireN ow tax exempt investments are defined as issues that are not income taxable Please refer to Investments Category Details Button section for entering detail data for a Class and
25. Returns Best 10 Years First Best 10 Years Second Best 10 Years Third Best 10 Years Fourth Average Special note when viewing the S amp P 500 Growth Forecasts Table Regardless of the growth forecast option chosen the Analysis Year column will not change and will always start with 1961 Thus when viewing the Historical growth forecast ONLY the analysis year will match with the actual corresponding return The key outputs to keep in mind are the Analysis Year and the Returns columns Analysis Year describes the first and succeeding years of the simulation For example if the first year of your simulation for a client starts in 2002 Analysis Year 1 2002 Analysis Year 2 2003 and so on Also note that this is a display table only and DOES NOT set any global values Individual S amp P 500 Growth Forecasts can be selected for each asset or category in the applicable asset sections The Standard amp Poor s 500 Index is a capitalization weighted index of 500 stocks The index is designed to measure performance of the broad domestic economy through changes in the LN LE ok amp NH La 8 73 22 80 16 48 12 45 10 06 23 98 11 06 8 50 4 01 aggregate market value of 500 stocks representing all major industries and is a common benchmark measurement of investment performance 38 RetireNow Users Manual Setup Advisor Setup I nformation The Advisor
26. Setup Information provides a place to store advisor contact information Advisor information will be printed on reports No field is mandatory 1 Select and click Advisor Setup A from the Setup drop TS e lee Advisor Robert Jones MID Senior Advisor 2 Enter information in as many fields as you wish Firm cenarioNow Inc 3 Click Save As Defaults if you wish PNefelg tt 4920 E State St Renae Rockford to save this information as the State rai AoT 08080 61108 0000 defaults OR dick OK tosavewhat MIBLTEE 815 227 4144 om o0 you have entered and close the Fax 815 397 4536 PITE Ss window OR click Cancel toremove gx what you have entered and close the window OR click Clear to make Save as Defaults Clear e Reload Defaults all fields blanks and start over 4 Click Reload Defaults to reload Cancel Help what you saved as the default Setup HTML Setup RetireN ow allows you to set the default web page that appears in the Home Solutions and Forms inside Action sections Each section has a default page shipped with the program You can choose any existing web page you have for each of these sections at any time Web pages can be from a web site you access from the Internet your company s intranet network or your own computer 2 3 1 Select and click HTML Html Setup Setup Information from the Setup drop down menu 2 Enter the directory path and Home lenarioNowiRetireNow homepages index htmiff Browse file
27. Total Calculate Box which totals the client s financial information for that category This total will override all other fields in this category Investments The Calculate box should not be checked itemize The value that you enter here will Assets represent the summary total for the NES HE Mec category and will override all previous Tax Exempt SORT totals for each of the input classes Ense sO Note When Calculate is unchecked the totals for each of the class inputs will gray out and TERI ME Details I become inaccessible SOM M 2 Class Specific Annual amounts may be entered for each class within a category that will override all other fields for that dass Theltemize Assets box for the item UM should not be checked Taxable 5 200 itemize 3 Itemized Annual amounts may be entered atthe item level within aclass In leds dees this instance the Itemize Assets box for the Bkisiiad 100 itemize item should be checked You can enterup Girdak 2 030 Itemize to 20 individual items Other 1 030 temize Personal I nformation Enter the client s personal information in this section If applicable the client s spouse s information or another single person may also be entered in this section and included in the analysis by checking the Include box 1 Select and click Personal Information from the menu on the left side of the Discovery home screen Enter the client s title in the Title field
28. Value Transactions are grayed out and unavailable A Term policy pays a death benefit only in exchange for policy premiums so cash values are not used Enter the cash value of all policies in the Cash Valuein Year 2001 field if applicable Enter the insured owner of all policies in the Owner field Enter the beneficiary of all insurance policies in the Beneficiary field Enter the death benefit option in the Death Benefit Option field a Death Benefit Only pays only the stated death benefit b Death Benefit amp Cash Value pays the stated death benefit plus accumulated cash value 5 Schedule T otal Insurance Schedule of Total Insurance Cash Value Growth Rate 5 00 ES a1 Yes i Is this a Term Policy Death Benefit SOT Annual Premium 0 Fill Cash Value in Year 2001 0 Owner Fill All Years e Fill Certain Years Beneficiary Heirs Death Benefit Option Death Benefit Only Cy Annual Death Cash Value Transaction Growth Age Premium Benefit Transaction Amount Rate so None so 5 00 so Nonef so 6 00 Ps None 0 5 006 so None 0 6 00 so Nonef 0 5 00 so Nonef so 5 00 so __Nonef 0 5 00 ps0 Nonef so 5 00 Clear Schedule Save Cancel Ins Ratings Help Enter the cash value growth rate for all policies in the Growth Rate field Click the Fill Button to place the selected cash value growth rate in the CV Growth Rate column below En
29. balance desired for all investments in the Minimum Balancefield If a valueis entered here it represents a floor that the schedule of investments will be drawn Minimum Balance So Es 27a down to and no further balances would be liquidated below this number Take as Needed b Click the Take as Needed button to ihun Paan H Aij liquidate assets as necessary according to the liquidation details E parameters in the Setup menu d anaes a c Click the Don t Touch Until Age button to select the age at which liquidation for all investments will occur Name Total Investments Liquidation Restriction Investments Class Level To enter data at the Investments Class level 1 Placea checkmark in the Total Calculate box by nemi e S E IE 0 clicking the box 2 Enter a value for the investment Itemize dass Assets 3 Click the Details button to soaMPME set specific attributes of the investment such as growth rates etc 2 3 If you clicked the details button to model an investment please refer to the Details Button above 80 RetireNow Users Manual Investments I tem Level To enter data at the Investments Item level Itemize Assets 1 dads box of any 5 200 l itemize M 2 Click theltemize button to model specifics about the investments such as growth rates dividends transactions etc Second Texan Kem pre 3 Click theA dd button to add edt an entry
30. desktop shortcut If you click cancel you will be asked if you would like to Resume set up or Exit Set Up Click Resume if you would like a desktop shortcut Click Exit Set Up if you do not want a desktop shortcut Clicking Cancel will not harm your computer Atthis point RetireN ow has been installed and can be executed Note Atthen end of the installation you will be given the option to load Macromedia Flash if you do not already have this program loaded on your computer You will need this program to view everything in RetireNow Congratulations Y ou have successfully installed RetireN ow To start RetireN ow double dick the shortcut that has been placed on your Windows desktop Heti reN ow Manually I nstalling RetireNow If theinstallation program does not automatically start when you insert the CD in the drive you can manually start the installation process by following the instructions below OVU BWNE Click the Windows Start button Stat Select and click Run Click Browse Select and click your CD ROM drive Click on the Setup Files short cut SetupFiles Follow the directions in the Installing RetireN ow Components starting with number 2 21 RetireNow Users Manual Uninstalling RetireNow If you want to remove RetireN ow for any reason it is highly recommended you usethe uninstall program The uninstall program will remove the RetireN ow components and delete the directories and files If you do n
31. e mail product support Support is available during normal business hours For technical support on content calculations and program features please contact ScenarioN ow from 8 30 am to 5 00 pm CST at Telephone 815 227 4144 or 866 272 3627 Fax 815 397 4536 E mail support ascenarionow com For technical support on technical issues such as installation error messages and Windows issues please contact Brentmark Software from 9 00 am to 6 00 pm EST at Telephone 407 306 6160 Fax 407 306 6107 E mail support com Partners ScenarioN ow is in the process of forming several partnerships with key individuals and corporations in the financial services industry in addition to the formal partnership with Brentmark Software We are proud to have developed a relationship with Expressive T ek Expressive Tek is an organization where creativity and technology intertwineto produce complete integrated media services The company offers a wide variety of creative and technical services including web site design multi media presentations programming and graphic design Expressive Tek may be reached at 18 RetireNow Users Manual Expressive Tek 702B Woodside Trails Drive Ballwin MO 63021 Phone 636 256 1362 Fax 636 391 0940 E mail sales expressivetek com Web Address www expressivetek com Technical Requirements Minimum technical requirements for RetireN ow consist of thefollowing Pentium II 333MHz Processor
32. entered in the Income Uses Spending class Input D efinitions Data inputs within the Discovery section are referred to in 3 different ways Category describes a section of data inputs Income Uses is an example of a Category Class describes a grouping of inputs inside a Category Spending is an example of a data input Class which is inside the Category of Income Uses Item describes a specific input item inside a Class note that you can only itemize data inputs in Itemize mode Standard of Living may be an example of a data input item insidethe Class of Spending which is itself insidethe Category of Income Uses Note When first starting the program sample data for Bill and Susan Sample will populate the data fields illustrating how the dynamics of Summary and Itemized mode work SAMPLE DATA will appear on the blue bar at the top of the screen To create a new client file choose File 2 New from the main toolbar at the top of the screen Scenarios The Scenarios section provides the advisor and the client with a graphical representation of the client s financial condition Scenarios may be created deleted or edited and up to 5 different scenarios the Base Scenario and 4 others may be created per client 14 RetireNow Users Manual The Base Scenario The base scenario uses the information first entered in the Discovery section Each new scenario uses the base scenario data as a start
33. investment Z This glossary is intended to provide a broad and accurate definition of applicableterms It is important to remember that Tax and relevant Estate Planning laws are constantly in flux and subject to change or revision It is provided with the understanding that ScenarioN ow is not in the business of rendering legal accounting tax or other professional advice If legal advice or other expert assistance is required the services of a competent professional advisor should be sought 125 RetireNow Users Manual BENE Appendix B Required Minimum Distributions Calculations Under The New Rules by Patrick Matthews 2001 Brentmark Software Inc All Rights Reserved The new regulations released on 1 11 2001 radically change the way minimum distributions have to be calculated They eliminate a lot of complexity and they reduce the number of decisions that must be made by a plan owner The distributions however still have to be calculated and the new reporting requirements make calculating this distribution accurately even more vital than ever When calculating the new distributions it s important not to be confused by the old rules The old recalculation options are no longer relevant There is no hybrid method or joint term certain method However the new methodology does still have some similarities to the old For example the distribution is still calculated by dividing the previous year s balance by a l
34. name of the page that get viens Uses Voir Solutions Browse HTML Setup default web page For Forms Browse example CA My Documents M y Page htm OR i y J Save Cancel Defaults Help 3 Click the Browse button and select the directory path and file name of the page that you want to use as your default web page 4 Click the Save button and the pages you selected will load the next time you run RetireN ow OR click Cancel to exit without saving your selection OR click Defaults to restore the default directory path and file name 39 RetireNow Users Manual Setup Location of Data Files The location of data files points to what directory client files are stored in The default for this is C Program Files ScenarioN ow RetireN ow Data f you prefer to save your client files A T d click the Browse button and select the Enter the folder where data files will be stored directory on your system C Program Files ScenarioNow RetireNow that you wish to use Zok Setup Liquidation Details RetireN ow allows you to choose how assets are liquidated to provide income You can tell RetireN ow when e To start liquidating an asset as needed e To makean asset available to liquidate based on a client s age e To stop liquidating the asset by specifying a minimum or floor balance Y ou can set liquidation schedules based on e Investment classes e Investment categories e Taxation In the Discovery s
35. or the after tax need is met Note The Sweep Account is first in the liquidation order by default representing cash on hand RetireNow liquidates assets at the beginning of the year Moving the Order of an Asset To movethe order of an individual asset taxability category investment class or category up or down do thefollowing 1 Highlight thetaxability category investment class or LLL category you wish to move Select a Liquidation Technique 2 Click the Up arrow button or Taxability the Down arrow button until Investment Class a taxability category e Per Asset Liquid investment class or category Current Liquidation Order isin the position you desire 1 Sweep Account 5505505507 itemize Liquidity 3 Click Save um 10 Stock Options 11 Other Retirement Taxability Liquidation Method On theLiquidation Order Form window if you select Taxability as the Liquidation Technique the Current Liquidation Order lists all categories that contain assets that are taxable and liquid An asterisk will identify itemized taxability categories that were previously setup in the Discovery section To set up theliquidation order for Taxability follow the steps in Moving the Order of an Asse 41 RetireNow Users Manual Y ou can determine when to start and stop liquidating taxability categories 1 Select and dick the taxability category you wish to set liquidation select a Liquidation Technique
36. other changes to the category Investments e Category Reports give a listing of totals of their subcategories For example the Investments Category reports shows the total investments broken into Taxable Tax Exempt Equities Tax Deferred and Other Investment subcategories e temized Reports givea listing of totals by individual itemized asset For example each individual stock mutual fund or insurance policy added A Suggestion Print one of each type to determine which fit your style and your client s needs You can then save them as a default set that are automatically selected for you each time you start the program Individual reports can always be added or removed 109 RetireNow Users Manual Clear Selected Reports and Select All Available Buttons The Clear Selected Reports button removes all reports from the Selected Reports field The Select All Available button selects all reports within an Available Reports category and moves them to the Selected Reports field To select a report for printing 1 Select and click on the Category button 2 Select and click on the desired report or reports in the Available Reports window 3 Click the right arrow button that points towards the Selected Reports window to move the report from the A vailable Reports window to the Selected Reports window OR double click on the desired report To remove a selected report to be printed 1 Select and click on the desired report
37. software just like a book except that you may copy it onto a computer to be used and you may make archival copies of the software for the sole purpose of backing up our software and protecting your investment from loss You must also agree not to reverse engineer the software By saying just like a book Brentmark means for example that this software may be used by any number of people and may be freely moved from one computer location to another so long as there is no possibility of it being used at onelocation or on one computer whileit is being used at another Just as a book cannot be read by two different people in two different places at the same time neither can the software be used by two different people in two different places at the same time unless of course Brentmark s copyright is being violated Limited Warranty Brentmark Software Inc warrants the physical diskette s and physical documentation enclosed herein to be free of defects in materials and workmanship for a period of 60 days from the purchase date If Brentmark receives notification within the warranty period of defects in materials or workmanship and such notification is determined by Brentmark to be correct Brentmark will replace the defective diskette s or documentation The entire and exclusive liability and remedy for breach of this Limited Warranty shall be limited to replacement of defective diskette s or documentation and shall not include or extend to
38. substantially equal payment In order to calculate the amount of the distributions the value of the account is considered to e aloan in which the retirement plan pays off to the participant including interest Annuitant An individual who funds an annuity and later receives its distributions Annuity A contract between an individual and an insurance company in which an annuitant contributes funds to the annuity in return for growth and regular income distributions at a later date 114 RetireNow Users Manual Annuity Distribution M ethod A method of distribution from a qualified retirement plan called a substantially equal payment The amount of these distributions are calculated according to the participant s life expectancy interest rate and the amount the participant has contributed to the retirement plan Asset Anything of monetary value that is owned by a person Assets include real property personal property and enforceable claims against others including bank accounts stocks mutual funds and so on Asset Allocation The distribution of assets in a portfolio in order to minimize risk and maximize return Attorney in Fact See A gent Beneficiary An individual who receives the benefit of an insurance policy annuity trust or retirement plan C Capital G ain Loss The gain or loss made by selling a capital asset This gain or loss is typically the difference between the price paid for the asset and its selling p
39. that no transaction occurs b Thelncrease option allows for the asset to increase in value without triggering a taxable event c TheDecrease option allows for the asset to decrease in value without triggering a taxable event d TheBuy option allows the client to buy more of the asset In a specific year or over a range of years e TheSell option allows the client to sell some or all of the asset in a specific year or over a range of years f TheGift option allows for the client to gift some or all of the asset in a specific year or over a range of years The value of the gift is deposited into the gift account and is removed from the client s estate If applicable enter the value of thetransaction for the year in which the transaction occurred in the Transaction Amount column field Enter the growth rate for all real property for a specific year in the Growth Rate column field 16 The End of Year column indicates the adjusted value of the asset at the end of the year 17 Click the Save button to save your entries OR click the Clear Schedule button to clear your entries OR click the Cancel button to exit the Schedule without saving any information 71 RetireNow Users Manual Real Property Class Level To enter data at the Real Property Class level l Place a checkmark in the Total Calculate box by clicking the box 2 Enter a valuefor the client s real property accounting for such items Hues IL CET Cure PET
40. to Hew File Startup Mode set in order to usethe RetireN ow software Access the Account Setup list by clicking Setup on the menu bar Insurance Rates Setup SAF 500 Growth Forecasts Advisor Setup Information HTML Setup Location of Data Files Liquidation Details Global Rates Estate Tas Calculation Setup New File Startup Mode New File Startup Mode determines how you will enter data in the Discovery 1 Summary Mode Data will be File Edit Setup Online Help entered at a category level in the Discovery section 2 temizeMode Data will be entered at the individual asset level in the Discovery section Theitemized column within the Discovery section will be automatically checked when you create a new client file Hew File Startup Made k Summary Made lhemize Mode S Account Setup Insurance Hates Setup i S amp P 500 Growth Forecasts Advisor Setup Information HTML Setup Location of Data Files Liquidation Details Global Hates Estate Tas Calculation Note Regardless of which Startup Mode is chosen you can freely enter client data in whatever mode or combination of modes that you find appropriate by checking or unchecking the itemize checkbox for each of the client data inputs in the Discovery section For t 31 RetireNow Users Manual Set Up Account Setup File Edit Setup Online Help New File Startup Mode Account Setup sets the defaults for three accounts which will b
41. transferred into thetrust and retains no rights to revoke terminate or modify the trust 119 RetireNow Users Manual J Joint Tenancy An arrangement in which two or more people own property together When one of the owners dies the surviving owner s automatically becomes the owner s of that share of the decedent s property K L Liquidity Thetrait of an asset that is already or that can be quickly converted into cash Living Probate The court administered process through which a conservator is appointed to an incompetent Living Trust A trust created to allow an individual to avoid probate and maximize certain tax benefits while enabling the trustor to retain control of his or her assets Living Will Power of Attorney for H ealth Care A document that allows people to specify in advance of an illness or injury which medical treatments will be administered or withheld in order to allow for a more natural death if thereis no hope for recovery Load N o Load A term that relates to the shares of a mutual fund that can be sold with or without a sales or distribution charge Long Term Care LTC Insurance An insurance policy that provides financial assistance to support medical personal and social services in order to meet the living needs of the chronically ill or disabled Lump Sum Distribution A benefit payment arrangement in which the participant receives the full plan benefit within one taxable year gener
42. used to appoint a conservator to manage the finances of an incompetent These proceedings are similar to probate and may involve significant expense Conservatorship continues until the incompetent is deemed to be capable or death Contribution Rules Rules relating to pension or retirement programs that dictate how much may be invested in an account Corporate Fiduciary A financial professional trained to manage another s assets Corporation A business entity created in accordance with state law Corporations are owned by stockholders who elect directors The directors oversee the corporation and elect officers to handle the management details Crummy Power Special rights by trust beneficiaries to withdraw funds from a trust for a limited period of time after a gift has been made This amount is usually limited to the greater of 5 000 or 5 of the trust corpus each year Crummy Rights See Crummy Power Custodial Account An account managed by a custodian for the benefit of a minor These arrangements are permitted under state laws that allow parents to manage funds owned by their children D D eduction A debt liability expense gift to charity or other item that can be subtracted on a tax return D eferral The process of delaying tax consequences to a later date 116 RetireNow Users Manual D eferred Compensation Plan Section 457 A non qualified compensation arrangement established by employers in which the empl
43. which an employer and an employee contribute pre tax dollars to an investment pool Contributions to a 401 k are tax deferred 403 b 4 403 b similar to a 401 k is a tax deferred retirement plan that lets employees of a tax exempt education or research organization to contribute pretax dollars to an investment pool Five By Five Power See Crummy Power 10 000 Annual Exclusion Rule Gifts of up to 10 000 per year may be made to any person without paying federal gift or estate taxes Gifts of more than 10 000 may be subject to gift taxes and will reduce the amount of the donor s unified credit 50 Percent Rule In any one year a tax deduction is limited to 5096 of the donor s adjusted gross income Some contributions may be limited to a 2096 or 3096 deduction A Slideshows The Slideshows subsection contains seven helpful slide shows that illustrate key concepts and planning vehicles that your clients may want to discuss in depth 1 Click on the Slideshows category 2 Click on the desired slideshow Accumulation Asset Allocation Charitable Trust Distribution Family Limited Partnerships Irrevocable Trusts Living Trusts Note These slideshows can also be accessed through the Home section 3 Navigate through the slideshow by clicking the Next and Back buttons at the bottom of the presentation screen 107 RetireNow Users Manual Action Section TheAction section is composed of a list of features that will allow the ad
44. 0 419 504 10 997 022 11 612 091 12 267 147 12 965 656 13 710 333 14 504 697 15 352 449 16 257 575 Bill 4 4 948 538 4 935 755 4 950 642 4 995 323 5 071 584 5 181 511 5 427 148 5 704 314 5 996 147 6 303 516 6 605 066 6 922 674 7 257 435 7 610 539 7 983 277 8 417 428 8 868 528 9 347 815 9 857 393 10 399 218 10 976 005 11 590 318 12 244 591 12 942 288 13 686 124 14 479 616 15 326 465 16 230 656 Bill 2 4 974 438 4 978 510 5 012 207 5 077 627 5 176 742 5 311 773 5 584 975 5 892 429 6 217 439 6 553 305 6 885 889 7 237 254 7 608 695 8 001 619 8 417 544 8 898 449 9 400 242 9 934 400 10 503 303 11 109 267 11 755 341 12 444 460 13 179 454 13 964 209 14 801 339 15 694 604 16 648 040 17 665 973 Note For all reports client years of death are highlighted in blue 101 RetireNow Users Manual Solutions Section RetireN ow Solutions is a gateway to educational content products and services uniqueto your company and practice and helpful presentation tools to guide your clients through their decision making process Solutions will help your client understand the big picture of the financial planning process key terms and definitions you will use and products and services you recommend Key topics in thefinancial planning process are broken down into specific targeted questions that you can discuss with your cient Using the
45. 010 and later years only Explanation 2011 Sunset current law with sunset Assumes repeal occurs in 2010 and prior law returns in 2011 with a 55 top rate and 1 million exemption This is the way the tax law is currently written This may bea reasonable assumption if one believes that no changes to the current law are likely and that the sunset provisions will prevail One of the other two choices may be a better assumption if one believes that the sunset provisions will not be implemented dueto futurelaw changes 2010 Repeal in 2010 current law modified to remove sunset and make repeal permanent Assumes repeal becomes effective in 2010 and stays effective thereafter This is what was originally intended by thetax writers but ultimate repeal remains uncertain dueto theinclusion of sunse provisions This may be a reasonable assumption if one believes that the sunset provisions will not beimplemented and repeal will ultimately prevail 2009 Rates in 2009 current law modified to continue estate tax with no repeal Assumes repeal never occurs and last scheduled rates are used in future years This may bea reasonable assumption if one believes that repeal is unlikely to occur This is the program default Using different estate tax calculations that can be graphically shown in the Scenarios section can have a significant impact on client estate planning 13 RetireNow Users Manual Home Home is the launching point for RetireN ow
46. 20 1 294 716 1 739 607 2 209 107 2 704 563 3 227 579 3 379 672 3 556 093 3 739 355 3 929 654 4 104 895 4 286 151 4 473 645 4 667 613 4 868 308 5 116 377 5 423 939 5 753 234 6 106 233 6 484 783 6 891 159 7 328 162 7 798 204 8 304 256 8 849 523 9 436 977 10 070 295 Retirement 545 000 594 050 647 514 705 790 769 312 838 550 914 020 996 281 1 085 947 1 183 682 1 290 213 1 406 332 1 532 902 1 670 863 1 821 240 1 985 151 2 106 003 2 232 777 2 365 592 2 504 545 2 650 058 2 801 876 2 960 008 3 124 930 3 296 135 3 474 150 3 658 978 Insuranc 20 871 21 801 22 76 23 78 24 85 25 97 27 151 28 381 29 68 31 041 32 4T 33 97 35 551 37 21 38 95 40 77 42 69 44 70 46 82 49 041 51 371 53 81 56 381 59 08 61 91 64 891 68 01 RetireNow Users Manual Scenario Comparison To create a scenario comparison you must first have created one or more additional scenarios from the Base Scenario data set To create a comparison l Click on the Comparison tab 2 Enter a namefor the comparison scenario in the Comparison N ame box 3 Click in the box next to the scenarios that you want to compare Y ou can select more than one scenario 4 Click Calculate Comparison Results N ot Current Press Calculate may be displayed Click the Calculate Comparison button if you seethis l File Edit Setup Onli
47. 56 18 44 32 42 4 91 21 41 22 51 6 27 32 16 18 47 5 23 16 81 31 49 3 17 26 89 8 73 22 8 16 48 12 45 10 06 23 98 11 06 8 5 4 01 2nd Ten 26 89 8 73 22 8 16 48 12 45 10 06 23 98 11 06 8 5 4 01 30 55 7 67 9 99 1 31 37 43 23 07 33 36 28 58 21 04 9 1 4 91 21 41 22 51 6 27 32 16 18 47 5 23 16 81 31 49 3 17 14 31 18 98 14 66 26 47 3 2 23 84 7 18 6 56 18 44 32 42 3rd Ten 26 89 8 73 22 8 16 48 12 45 10 06 23 98 11 06 8 5 4 01 14 31 18 98 14 66 26 47 37 2 23 84 7 18 6 56 18 44 32 42 30 55 7 67 9 99 1 31 37 43 23 07 33 36 28 58 21 04 9 1 4 91 21 41 22 51 6 27 32 16 18 47 5 23 16 81 31 49 3 17 4th Ten 26 89 8 73 22 8 16 48 12 45 10 06 23 98 11 06 8 5 4 01 14 31 18 98 14 66 260 47 37 2 23 84 7 18 6 56 18 44 32 42 4 91 21 41 22 51 6 27 32 16 18 47 5 23 16 81 31 49 3 17 30 55 7 67 9 99 1 31 3 43 23 07 33 36 28 58 21 04 9 1 A verages 1961 1970 1 9 038 2 1971 1980 10 344 3 1981 1990 14 627 4 1991 2000 18 39 37 RetireNow Users Manual To set up the S amp P 500 Growth Forecast l Select and click S amp P 500 Growth Forecast on the Setup drop S amp P 500 Historical Returns 1961 2000 and Growth Forecasts down list 2 Select and click an Investment Forecast Select a Forecast to View 3 Click OK Historical S amp P 500 Returns SESS 2 Reverse Historical
48. Decrease option allows for the asset to EN ees sola s number of years 9 Pare Note The Growth Rate Fill button Fill Certain Years affects the growth rate only The Transaction Amount fill button will Start Age 56 Stop Age work for either all years or certain years depending on which button is b c selected when fill is clicked b Enter the dient s age for the first year of the specified number of years in the Start A gefield c Enter theclient s ageat the last year of the specified number of years in the Stop Age field 70 RetireNow Users Manual 10 TheYear column Transaction Growth nd cates the year of Tear Transaction Amount Rate analysis 11 12 13 14 15 The Age column indicates the age of the client during a specific year The Begin of Y ear column indicates the balance of the asset at the beginning of the year If applicable enter the appropriate transaction for a specific year in the Transaction column field by clicking a specific year in the column Note There are shortcuts when working with transactions When the transaction selection is clicked pressing the F5 key will FILL ALL transactions to follow in the remaining years of the simulation with the same value Pressing the F12 key will FILL NEXT TRANSACTION only with the same value and advance the cursor to the next transaction field a Noneindicates
49. Equities International Emerging Markets 77 RetireNow Users Manual 7 10 11 12 13 14 15 Enter the appropriate Beta calculation by clicking the Beta field For a detailed definition of Beta and how it affects investment performance see Chapter 4 Set up S amp P 500 Growth Forecasts Beta values can be negative or positive Zero can be entered but the program will default back to 1 Note If the Beta factor for the asset is not known itis always safe to enter a value of 1 asset moves as the market moves Enter the appropriate S amp P Forecast selection if desired by clicking on theS amp P Raoni 8 Forecast field see Chapter 4 Set up S amp P Wee Historical 500 Growth Forecasts for details on these Transaction au Reverse selections First Ten None EE Second Ten Note If S amp P forecast is none beta is not Third Ten relevant None lFourth Ten Click the Table button to review the S amp P None forecast tables Note For further information on the S amp P 500 table and the alternate investment scenarios refer to Chapter 4 Setup S amp P 500 Growth Forecast Enter the appropriate growth rate for all investments in the Growth Rate field Click the Fill button to place the selected growth rate in the Growth Rate column below Enter the appropriate dividend percentage in the Dividend field Enter thetype of transaction for all investments in the Trx field a Noneindicates that no tr
50. Geimer Solutions Action zraunal niormalicoe Investments Fiage Scaneri III income Lines TT 95 000 Tamme EDIT incomes Sources TET Dest als eL Cort in Hi Tis Dafirrid Ciri ae Hi Other Deisi Rag Procerty Fu Hor Ti arking Ee neg e Tatal rga EPI S2 all E lu T Lisgini Plone T BUE R PESUMER PCT leri be ment g Kk LL SICELI 4d E Eales in poe ol IEFTITZ Tau a Er 60 ka Cogh Value 7113 MJ ka Darih S TT Lo i22 mn Investment data can be entered at any of thethree levels Category Class or Item 76 RetireNow Users Manual I nvestments Category Level To enter data at the Investments Category level do thefollowing 1 2 1 Click the Total Calculate Box and remove the checkmark When unchecked the Total Calculate Box Total fCalculate SOM Detais 3 overrides figures entered in the classes above and represents the total of all of the client s investments Enter a value in the Total field 3 Click the Details button to mode transactions S amp P investment performance modeling and so on Remember that unchecking total means data is being entered in summary mode Total now overrides all above items N Investments Detail Button representing Summary Mode inputs If you clicked the details button for investments 1 Enter the total Val ue Schedule T otal Investments of all investments in Schedule of Total Investments the Balance In Y ear Balan
51. Gift Account each year Selecting Tax Exempt will not impose a tax on the growth of assets inside the Gift Account Enter the Prior Adjusted Taxable Gifts for the client and spouse This is the value of any monies that the client gifted previously that were subject to Gift Tax Note that based on this figure the Prior Unified Credit Used by the client s will automatically calculate and display in that field Note Spouse information can only be entered if the spouse was included by checking the box on the Personal Information page in the Discovery section Enter the Prior Unified Credit Used by the client and spouse Thisis the amount of the client s Unified Credit that has been previously used to avoid offset the gift tax on prior adjusted taxable gifts Note that this field will auto calculate based on the inputted Prior Adjusted Taxable Gifts This figure can be overridden with another dollar figure from 0 to the maximum credit amount if desired Press Saveto savethe information OR click Cancel to exit without saving your selection E Save 33 RetireNow Users Manual Retirement Accounts The Retirement Accounts Setup is used to specify how early distributions from retirement Hetirement Accounts 5etup Retirement Accounts Setup accounts should be handled Early Distribution Rules Pre 5974 1 Select and click Retirement Apply 10 penalty to early distributions Accounts i e Allow for early distributions
52. J Eile Edit Setup Online Help Revie Home SCENARIC VIP SERIES Scenarios Solutions Action Personal Information Employment Information 58 Income Uses Income Sources Real Property Non working Assets Business Assets Investments Retirement Plans Insurance Retire Work Title CEO Occupation Company Sample Software Inc Address 123 Corporate Drive City State L 4m 60060 000 E mail Address Phone 312123456 Fax 312123456 Susan s Info Income Uses 100 000 Income Sources 67 127 Real Property 700 000 Non Working 305 000 Business 2 500 000 Investments 850 000 Retirement 500 000 Ins Cash Value 20 000 Ins Death Benefit 200 000 RetireNow Users Manual I ncome Uses Thelncome Uses section is designed to account for the client s use of income Note Remember that all inputs here should be in AFTER TAX figures For example if 50 000 is the amount for the spending class the program will liquidate assets if necessary to deliver the 50 000 net of any applicable taxes A helpful way to remember what figures should be in this category is to ask the client What dollar amounts do you NEED for these items AFTER TAX Ele Edit Setup Online Help KAUAN EE di Home Scenarios Solutions Action Personal Information Income Uses Employment Information Base Scenario Income Uses 10 000 Income Sources Spending i Income Sou
53. Multiple policies may be used New Client Setup Allowsthe advisor to select an insurance policy Oneinsurance policy per client may be selected S amp P 500 Growth Forecasts The S amp P 500 Growth Forecasts displays the historical Total Returns at this writing from 1961 to 2000 for the benchmark Standard amp Poor s 500 Index The options listed below in combination with a user supplied Beta factor provide for a variance in investment returns A Beta factor of l represents an investment that is at least as risky as the overall market as modeled by the S amp P 500 Beta values above or below 1 and choosing the order of when the 10 best years of the historical returns occur again can thus produce a wider variance of returns Five S amp P 500 Growth Forecasts are provided Historical Returns displays the performance of the S amp P 500 since 1961 Reverse indicates that historical values are displayed in reverse order for the next 40 years 1st 10 the best 10 year period is placed in the first 10 years for the next 40 years 2nd 10 the best 10 year period is placed in the second 10 years for the next 40 years 34 10 the best 10 year period is placed in the third 10 years for the next 40 years 4th 10 the best 10 year period occurs in the last 10 years this is also the historical result Note The historical return patterns listed here do not set any defaults throughout the program and can be accessed in the Investments Retiremen
54. Non Working 32 100 Business 2 110 Investments 9 360 Retirement 17 450 Ins Cash Value 203 030 Ins Death Benefit 20 500 Real Property Data Entry Real Property data can be entered at any of the three levels Category Class or Item Note The Real Property screens add additional features here such as Cost Basis and Ownership Don t forget to enter these values in the Details button if entering data in Summary Mode The Real Property screens introduce asset transactions that allow the values of assets to be manipulated in certain ways The basic principles of these manipulations will be discussed here but apply to all of the asset screens 68 RetireNow Users Manual Real Property Category Level To enter data at the Real Property Category level l Click the Total Calculate Box and remove the checkmark When Details unchecked the Total Calculate Box Total MfliCalculste 5 Harale overrides figures entered in the categories above and represents a total for all of the real property that the client owns Enter a value in the Total field Click the Details button to model the value of real property by year or the effects of growth and transaction amounts Total now overrides all above items 1 2 3 Real Property Details Button If you clicked the details button to model income uses l 2 3 Enter the total value of all real property in the Balance in Y ear 2001 fi
55. RE S AEN UR EA EZK DEI I EE ERE ERE 68 Real Property Dat ENV soiis iaiia ask Ee dE Ra PARKER Eu SER RREWEREA EIU Cu ER EREN Saadah ia iaiia 68 Real Property Category Level 5 5 veis uu gun E nEE cain Uu ux uda En RE gw ENEREN ME ERN qM E VEU KE RER 69 Real Property Details Button oeoe rere ee eren aen a nana naeh nean uaa 69 Real Property Class Level 5 5 voa ix ex ruo uu nk V CaenUn EN MEN ES EekP Esa TERN MENOS CN EN ON CAU a aani 72 Real Property Item Level iones sin sx a nuUa ds BUS Eaa 72 Primary Residence ro cousd4os cua Ou o2 sos Gus cuo necu ova Durus en UE opea Sud cuo DR eR Pa US ED e SUR UC ERE aa 72 Secondary Residence 5 oos i sukus siora E ER SERERERERER S PEVR VE RM FRAREUR RN EVoR CREER ENE 73 LINA et 73 Rental PrODerty sisitiwidnacscctiersesctnsascachaceun E aa A 73 QUEER TTTDTDID DIO ITI ILIDIICT TITULUM UTI 73 Non WorkIng ASSets eco ieii iEn D EXE Ev CER ERE VR GNE ME x SYM DD ER 74 Personal Property isis aaxus ok os va s vus EEuvE Eaka cO eK US T va EP irea EEs RE EEan ER RUE 74 AUtomoDIIGS icio ixi el EEV UN EISE R E siu Rod ERA UU ERR VENE RR Ra RE EON MEN MEE CE MH NEN NR RUN N E LN NEN EEN IK NERE 74 OUDGE iiio viviamo onc RR OE RR EROR COE ACER E EM TCR RD C A EA oaa aeai 75 Business ASSETS oci hri ia ki REM COR SEES RE REOS DU ES SERE KI ON RN E RERNE RS 75 LANG coa E eda vEXSER CREE VPE WERE rai SR ERR ERAS SEE E EE ERE I FERE EWAS RESERVE E FEM VL FERE ER 75 B
56. RO SCR GR ER PRG NR OR QD 10 Insurance Rates Setup 0 d ocuasus oe ozw Vals a soe cus vabisa nea ga ovans neu aD or RE Vengo uE ENTER EE EE EE 11 S amp P 500 Growth Forecasts i ioa noo creo RO ROC ERR XE RERO ER RR 11 Advisor Setup I nformation iiis vci cio RR ORG CORRER RIC RHET REDE 11 HIME SOC iccins cates asaniaad iyu Fen D VIE ee saSE X FUSE VE VE KEV E REEURKVNSIU VE SR NC FEN TUNFDI LENA MER 11 Location of Data PIGS 5 esci enu ka ERE YER CER CENX REREXCAEWIR EE CER NE VERMAEMEEREREAMESU EI CU ERG IR 12 Select Liquidation Detalls civi ike Ea a ER REV ERR CIO OR P P CORR CRT RAR DR RON RR 12 GloDal Rates ioievvus disi vi rwv cR EV ERR VENE a wc c wa wp E aw a 12 Estate Tax Calculation Setup iissavacukcni eiii aari iG EGO no ERROR I ERO EO HCGOE EORR C RO 13 aiit me 14 DISCOVET Viii cid rp qa ODER EAEE 14 no Gl f g 9 audi conie LYCEE FEEERIS ER EUR OCA FECE EE EU RI EAR EL S12 259 IS UO REESE EIE 14 The Base Scendi lO oisaisusl uud nhu EAE EkSRIE CR VSEKSENRD NI VRISEIME RE F RI D FEE RSE MR EN EVE UEUEEN EKRI IEEE VOR 15 Conmiparson Scenarios iiisisss iex vi E ERE CHR ERE CER CRI ID ERO ni M FR GE RD RD DR RD RARE 15 SONU ONS X 15 ACBOD oinaan EON 15 ACTION UNSC i esas ett i FR REX ir GER a a ERR AR LE WE RR WR 15 A tae RR PODTEPEP TETTE LLLI OIN ILL 16 FONS ETPIT NIETO DIDI DETINUIT TINI EG 16 Chapter Doosesscus sas SERES Usus NE PARES EAS REM E MEEEEUEM END LT Welcome to RetireNOwW eeeeeereee ener n
57. RetireNow Software and User Manual Version 2001 01 Copyright 2001 ScenarioNow Inc All Rights Reserved August 20 2001 ScenarioNow Inc 4920 East State Street Suite 1C Rockford IL 61108 Telephone 815 227 4144 or 866 272 3627 Fax 815 397 4536 E mail info scenarionow com Sales inquiries sales scenarionow com Web address www scenarionow com Brentmark Software 3505 Lake Lynda Drive Suite 212 Orlando FL 32817 8327 Telephone 1 800 879 6665 or 407 306 6160 Fax 407 306 6107 E mail sales brentmark com Web Address www brentmark com For technical support on content calculations and program features please contact scenarioNow from 8 30 am to 5 00 pm CST at Telephone 815 227 4144 or 866 272 3627 Fax 815 397 4536 E mail support scenarionow com For technical support on technical issues such as installation error messages and Windows issues please contact Brentmark Software from 9 00 am to 6 00 pm EST at Telephone 407 306 6160 Fax 407 306 6107 E mail support brentmark com RetireNow Users Manual Quick Reference GUNG scecaccinwuceaevieercnetcarecteciucevencuese Welcome and Contact I nformation nennen 9 SUVS Gea Meek CLOUD ERN TETTE TETTE TIS 9 SOUD m 10 Select New File Start up Mode iisiuxaii n Ra Ri E EC Ri E RCER RR HE A Rr RR E 10 Select Account Setup EVE RR ROGER GO QOO QK E
58. TIE EKHE 29 Help Search For Help ON iix er vEVER EVE E EXER CES EHE ExVI WES EVEVR ER ER VE RCM ERE EU ER RR E RN 29 Help For Current Screen suc kic ccn ooa ngo c tnde Go GR RR RO RR 30 ScenarioNow Product Library e erre ere r rre nean a uana aiiai 30 Software Tramilig csse essanuu nu variR s a E sed nan RI ISA RCM APMduE QUEE E a aE EA RUNE HE 30 License AgreemellE iso ncusvesswea sees Ea A a UNIES 30 ADOMUU uui con di nof CHEE EEC PEP CRTC Eb Rc VERE V VO ITEP a da RN UR M CUR SR RR CCRT ETT EN 30 Chapter d ssssa EecaRR NEN EEERIESEREERE RE EREEOS a E Configuration and Setup eeeeeeeeeeeeeee nennen nnns 31 Configure Setup Menu na ick x eE urb B ROLE ECOL SR GRECE Ev EE ERR Cad a E NUR QR 31 Setup New File Startup Mode eeeeeeeeeee ee enn 31 Set UD Account Setup oiiiisstiienekiresebab uns Yon SENIS SV ERFESIxESEE EY RYE KE EN FEE EEaE 32 RetireNow Users Manual SWEED Account Setup isi oua osa cS ua swa CxAa CE DEN Ea KR UN CEN AMEN IUE MERDA MM CRI RS EMEN NFE NEN Ud iE ME 32 Gift Account Setup iinsiwiesab n xia i i OR On RERBA RARE DER RD 33 Retirement ACCOUNTS uioistks ein Onda C OC OUR ERTRONOR COR RD RR DAR RD RO ER RN 34 Trust Accounts A B sisisseicusvaguguRa suas Saas ReERUE EE EFEEE REESE REI EMEN EEFEME dE KIREESKM SML FREE RE KE E 34 Setup I nsurance Rates Setup e eeeeeeeeeeee nennen 34 Mainte n
59. Transfer retirement percentage Growth Rate in the Income Tax Rate Pre retirement field Save Cancel Clear Help 5 Enter the default income tax rate post retirement percentage in the Income Tax Rate Post retirement field Enter the default income tax rate heirs percentage in the Income Tax Rate H eirs field Enter the default assumed capital gains rate percentage in the Assumed Capital Gains Rate field 8 Enter the default assumed trust transfer growth rate percentage in the Trust Transfer Growth Ratefield TheTrust Transfer Growth Ratefield applies a default growth rate to investments that have been transferred into a trust 9 Click Saveto save your changes OR click Cancel to exit the window without saving your changes OR click Clear to make all fields blanks and to start over MPO 44 RetireNow Users Manual Setup Estate Tax Calculation Recent changes in estate tax law have resulted in higher exemption amounts and other changes affecting estate tax calculations uir ap aM rip Estate Tax Calculations RetireN ow allows you to select between three e 2011 Sunset potential scenarios e 2010 Repeal in 2010 2011 Sunset 2009 Rates in 2009 e 2010 Repeal in 2010 e 2009 Rates in 2009 program default These choices will affect program computations for 2010 and later years only ORK Cancel Explanation Save As Default 2011 Sunset current law with sunset Assumes repeal occurs in 2010 a
60. UH information for the item Enter the name of the item in the N ame field 6 Theremaining fields to enter arethe same as the Details Button previously described for the Category Class Please refer to the ncomes Uses Details Button section All Class and Item data entry principles operate the same for the Income Uses class Note The ability to itemize assets can be powerful Through the combinations of Summary and Itemize modes characteristics of client assets can be as detailed or as general as necessary 62 RetireNow Users Manual Spending Enter the annual spending amounts for your client in this section Spending items could include vacations recreational activities travel memberships etc Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Cash Gifts Enter the annual amount of all cash gifts in this section Entries in this field are placed in a gifts bucket that grows outsidethe client s estate If you clicked the details button to model cash gifts 1 Enter the owner of the spending in the Owner Schedule Cash Gifts Schedule of Cash Gifts 0 fi eld poate nflation Rate 2 Enter a val uefor the T MB 0 Fill dient s annual gifting in John TER the Amount field OR SUIDA leave the entry made for gifting in the previous Amount Over Inflation
61. Uses Item Level section for entering detail data for a Class Item Annuities Enter the annual value of all annuities already in the distribution phase in this section Annuities in the accumulation phase are modeled in the Insurance A nnuities category Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Deferred Compensation Enter the annual amount paid to the client in deferred compensation benefits in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item 66 RetireNow Users Manual Disability Enter the annual amount paid to the client in disability benefits in this section TENES SOMIT COLA Adjust 4 00 Fill Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Fill All Years e Fill Certain Years Disability fields are modified to reflect the disability benefit and COLA adjustment rather than the Amount Growth Rate fields Note The COLA adjustment in the Detail and Itemized sections functions the same way as the growth rate in other sections Long Term Care Enter the annual amount paid to the client in long term care benefits in
62. age 2 Navigate through Solutions by clicking the desired topic in the navigational sidebar 3 TheSolutions Homelink returns you to the Solutions Home page 4 Theprintlink prints the page that you are viewing File Edit Setup Online Help Planning Your Retirement 2 Managing Investments Planning Your Legacy Estate Tools Product Solutions Glossary 4 Retirement Income Planning Slideshows Important Please Read The ScenarioNow RetireNow Solutions section provides education product information and helpful tools to quide you through your decision making process SCEN ARIC wif SER Status Done 5 Click the plus sign to view the sub topics in that category 6 Click the left arrow to collapse the navigational sidebar to provide additional viewing space 7 Click the arrow again Planning Your Retirement to restore the Managing Investments navigational sidebar to Planning Your Legacy its original format 5 El Estate Tools Product Solutions Glossary Slideshows Important Please Read 103 RetireNow Users Manual General Navigation Tips Throughout the Solutions section FAQ Mouse overs Frequently Asked Questions provide on screen definitions with graphics in many cases for commonly used terms 1 Place your mouse over a term 2 A box will appear with the definition 3 You can turn the mouse over function on or off by clicking the Hints button in the upper left corner of the cur
63. ali6e ius oii ei ke xr a o OR ER E ERR ORAE ER ON DELE E RO V RU RUN OR CUI EA CR aO ORT ROT ER 35 Client Setub sisi iae v ERG E a E R R RE R X 35 Setup S amp P 500 Growth Forecasts eeeue 36 How Beta Affects nvestment Returns eere er eere nennen nn nnn 36 Setup Advisor Setup I nformation 39 Setup HTML Setup ccsccccsccscesesessscesessssssscscscsvsrseesessesavareeseeseesevavaveneneeees 39 Setup Location of Data Files creen 40 Setup Liquidation Details eeeeeeeeeeee eee 40 Moving the Order of an Asset e eere eere eese eren aenean nene n ununi uuu u aun 41 Taxability Liquidation Method eeee eere erroe eere eene nnn unn 41 Investment Class Liquidation Method eee ess 43 Per Asset Liquid Liquidation Method ee esses 44 Setup GIODaL Rates io aei eis a E 44 Setup Estate Tax Calculation ceeeeerreee 45 Cliapter Brosse mikasusAususkauaMdnsEdadUM UM ENUNNK iMEN NN O H me Sectio uoi oo Eno oru a ears 46 Co branding and Customization eeeeeeeeee eere 46 Home Section Navigation
64. ally after death disability attainment of age 59 or separation from service M M arket V alue SeeFair M arket Value 120 RetireNow Users Manual Minimum Distribution The smallest amount that is allowed to be withdrawn from a qualified retirement plan M utual Fund A company or an individual who pools funds from investors in order to buy securities This investment is managed by a professional money manager who buys and sells securities according to a particular investment strategy or objective NetAsset Value The market or face value of a fund s investments For a mutual fund the net asset value per share represents the fund s market price For a dosed end fund the market price may vary significantly from the net asset value O Option A contract that establishes a price and a time frame for the purchase or sale of a particular security An option may be exercised at which point the underlying security is purchased according to the terms of the contract it may be sold at its face value or it may expire at which point the option becomes worthless P P E Ratio See Priceto Earnings Ratio Pension Plan A plan established and funded by an employer that provides for periodic payments to an employee or other beneficiary designated by the employee upon retirement Personal Representative See Executor Pour O ver Will A specialized will used at death to transfer all assets outside of a trust into the trust P
65. and Highlight by Mi Monochrome Wi NT Printing clicking the font to ll Print Page Numbers display the Font dialog box Select the Font Style Size and Effects Title to apply to the Report 5 Click Save to save your Highlight changes OR click Cancel to exit report Save Cancel FO Restore Defaults Help options without saving your changes OR click Restore Defaults to reset all the report options to the defaults that were shipped with the product Forms The Forms area is intended to provide you with the required product forms applications disclosures etc that can be printed by you and completed with the client Forms require customization by you or your firm ScenarioN ow has supplied example forms for you to review For further explanation on customizing forms please contact ScenarioN ow at C ENARICMow 4920 East State Street Suite 1C Rockford IL 61108 866 272 3627 or 815 227 4144 sal es ascenarionow com 112 RetireNow Users Manual To view thelist of forms Click the Forms button Click on the Forms category to display a list of available forms Click on theform typeto display the form To print a form click Print in the upper right corner of the forms window Y ou can also display and print forms from the Internet your corporate or office Intranet or a pathway to files on your local machine Typein thelnternet address or filelocation Click the Go button or the press the enter key Thele
66. and Start Age IG stop Age B5 place it in the Inflation Rate column for the entire period of analysis Click the Fill All Years button if you wish to have the value in the Amount field and the value in the Inflation Rate field selected for the entire period of analysis OR Click the Fill Certain Years button if you wish to have the valuein the Amount field and the value in the Inflation Rate field placed for a specific period a Enter the client s age for the first year of the desired specified period in the Start Age field b Enter the client s age at the last year of the desired specified period in the Stop Age field Note Either or both of the Amounts or Inflation Rate fields can be edited for any one year You can introduce any economic dimension in this way throughout all of the data inputs in the program The Year column indicates the year of analysis TheAge column indicates the age of the client during a specific year Specific entries for specific years may be entered in the New Amounts field Adjustments in the inflation rate for a specific year may be made in the Inflation Rate column 6a 6b The Inflated Amount nae naian i Year Age Amounts Rate column displays the effect of inflation upon spending in a specific year Note This column is highlighted in yellow to draw the client s attention to the output here Key output columns are highlighted in yellow throughout the program Click the Save button to save your
67. ansaction occurs b Thelncrease option allows for the asset to increase in value Growth Rate 5 00 BIET Note This does not trigger any taxable nO events but allows values to be Dividena Fill increased urs EU Fil 13 c The Decrease option allows for the A None asset to decrease in value MH Increase Note This does not trigger any taxable Decrease events but allows values to be decreased d The Buy option allows the client to buy more of the investments The cash to do so is taken from the Sweep A ccount e TheSell option allows the client to sell some or all of the investments over a period of time Cash created from the sale is deposited into the Sweep A ccount f TheGift option allows for the client to gift some or all of the investments over a period of time See Real Property Details Button for more information If applicable enter the amount of the transaction in the A mt Field Click the Fill button to placethe transaction amount in the Transaction Amount column below 78 RetireNow Users Manual 16 1 18 19 20 21 22 23 Click the Fill All Years button if you wish to have the value in the Growth Rate field and the value of the transaction amount field selected for the entire period of analysis OR a Click the Fill Certain Years button if you wish to have the value in the Growth Rate Fill Growth Rate field and thetransaction BEP Gu Fill amount placed be
68. any claim for or right to recover any other damages including but not limited to loss of profit data or use of the software or special incidental or consequential damages or other similar claims even if Brentmark has been specifically advised of the possibility of such damages In no event will Brentmark s liability for any damages to you or any other person ever exceed the lower of suggested list price or actual price paid for the licenseto use the software regardless of any form of the claim BRENTMARK SOFTWARE INC SPECIFICALLY DISCLAIMSALL OTHER WARRANTIES EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE Specifically Brentmark makes no representation or warranty that the softwareis fit for any particular purpose and any implied warranty of merchantability is limited to the 60 day duration of the Limited Warranty covering the physical diskette s and physical documentation only and not the software and is otherwise expressly and specifically disclaimed The limited warranty gives you specific legal rights you may have others that may vary from state to state Some states do not allow the exclusion of incidental or consequential damages or the limitation on how long an implied warranty lasts so some of the above may not apply to you Governing Law and General Provisions TheLicense Statement and Limited Warranty shall be construed interpreted and governed by
69. be in effect until the death of the second person Click the Save button to save the edit or the Cancel button to close the window without saving your data To edit A mounts rm Double dick on Amounts Edit the amount for a specific year in the New Amt field OR click Fill to fill amounts by a range of years or all years If you clicked Fill a Enter the amount in the Valueto Fill field b Select the Fill All Years to fill all years with the amount OR c Select Fill Certain Years to fill a range of years with the amount 94 RetireNow Users Manual 4 d If you clicked Fill Certain Y ears 1 Enter the start year in the Start Y ear field 2 Enter the stop year in the Stop Y ear field 3 Click OK to save your data or Cancel to close the window without saving your data Click Save to save the edit OR click Cancel to close the window To edit Inflation Rates l 2 3 Double dick on Inflation Rates Enter the inflation rate percentage for a specific year in the N ew Rate field or click Fill to fill rates by a range of years or all years If you clicked Fill a Enter theratein the Valueto Fill field b Select the Fill All Years to fill all years with the rate OR c Select Fill Certain Years to fill a range of years with the rate d If you clicked Fill Certain Y ears 1 Enter the start year in the Start Y ear field 2 Enter the stop year in the Stop Y ear field 3 Click OK to save your data or Cancel to cl
70. ce in Year 2001 SUM s 2001 field rm Dividend Fill diis T MED ES nn 2 Enter thecurrent o Fill All Years Is the Asset Liquid Yes e Fill Certain Years cost basis Owner 3 Click the Class field Re invest Dividends to select the Beta 1 00 S amp P Growth Forecast Table Historical l nvestment type Transaction Growth Note Selecting the Transaction Amount Rate Dividend class of the 5 0096 0 0095 5 00 0 00 investments is for LI reporting and liquidation purposes only and has no effect on the performance of EEZ EZ the investments Clear Schedule Save Cancel Liquidation Info 4 Click the Is the Asset Liquid field and select whether or not the asset is liquid 3 Note All assets can be tagged as liquid or illiquid If the asset is Fach andl Mena Market tagged as liquid the default for all assets itis subject to the Fixed Income Short Term liquidation order that the user specifies and may be expended to meet Fixed Income Intermediate Fixed Income Long Term the cash flow needs of the client Fixed Income High Yield 5 Enter theowner of all investments in the Owner field Fixed Income International Note Other options are available when a second client is modeled Fixed Income Municipal 6 Click the Reinvest Dividends field to determine whether or E9ulties Large Cap Growth not dividends will be reinvested back into the investment Equities Mid Cap Equities Small Cap
71. cessive add ons to the VIP software series to share common data sets Applications that will allow saved client files to be imported and manipulated into other types of programs are currently in development File Open File Open opens an existing client file l Select Open on theFile drop down list 2 Select and dick on thefile you wish to open from the file list and dick 3 Click Open OR double click on the file 4 Click Cancel to exit this Filename Open J window without opening a 3 client file Files of type FietireN ow Files ee ae File Save File Save saves the file you are currently working on New information entered for your client will be saved when clicking Save If you have not previously saved the file you will be asked to name the client file See File Save As below for instructions 1 Select Save on the File drop down list 24 RetireNow Users Manual File Save As File SaveAs savesthe file you are currently working on as a new name New information entered for your client will be saved when clicking Save As l Select Save As on the File drop down list 2 Enter the new name of the client file 3 Click SaveOR click Cancel to not save the client file File Report Options File Report Options allows you to change the default settings for your printed reports 1 Select Report Options on File drop down list 2 EntertheHeadingfor 2 the reports if desired 3 Choose printing
72. d 43 RetireNow Users Manual Per Asset Liquid Liquidation Method If you select Per Asset Liquid the Current Liquidation Order lists all Investment and Retirement Plan assets that are liquid If you have not itemized assets the list displays the category name For example if you do not itemize the Equities category in the Investments section the list displays Equities Category If you have overridden an entire section with a single Total the list displays the Section name For example if you override the Investments section the list displays Total Investments Category To set up the Liquidation Order for Assets follow the steps in Moving the Order of an Asset Note It may be better to return to the Setup Liquidation Details screen after you have completed the input of client assets in the Discovery section and established any liquidation preferences that the client may have Setup Global Rates Global Rates are default percentage rates that are displayed throughout RetireN ow windows Therates can be modified in each window as desired 1 Select and click Global Rates from the Setup drop down list Growth Rate 5 00 2 Enter the default growth rate percentage Inflation Rate a Sets Income Tax Rates Pre retirement 3 Enter the default Post retirement inflation rate 40 00 TARS percentage in the l Assumed Capital Inflation Rate field Cains Tax Rate 4 Enter the default income tax rate pre Trust
73. data for a Class Item 74 RetireNow Users Manual Other Enter the value of all other non working assets in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Business Assets Enter the value of all business assets owned by the client in this section Note See How to Model Mortgages in the Real Property section for assets that have debt against them Depending on how complex the mix of business assets is it may be easiest to use Method 1 values are entered at market value less any debt Entry in the Business A ssets category is identical to entry in the Real Property and N on Working Assets category File Edit Setup Online Help IGA ADE ee ati Home Scenarios Solutions Action Personal Information Business Assets Employment Information Base Scenario Itemize Income Uses Income Uses Assets 10 000 Income Sources Land ss SO IDET Income Sources 0 Real Property Buildings SOIT n Real Property Non working Assets Other sol Details i 0 Total now overrides all above items Non Working ce rome feeder 0 Business Retirement Plans 0 Values represent balances in year 2001 Investments Investments Insurance 9 360 Retirement 17 450 Ins Cash Value 203 030 Ins Death Benefit 20 500 Land Enter the value of al
74. death the distributions are taken out over a term based on the owner s life expectancy in the year of death Once again this works the same as the old term 126 RetireNow Users Manual certain method with the life expectancy being reduced by one for each year that passes after the owner s death Situation 4 Owner dies with spousal beneficiary When the owner dies with a spousal beneficiary the spouse gets special treatment n this case required distributions are generally based on the spouse s single life expectancy in each year after the owner s death If the owner dies prior to the calendar year in which he would have reached age 70 the spouse does not haveto start taking distributions until that year However if the owner dies before 12 31 of the calendar year in which he would have reached age 7072 and the spouse also dies before 12 31 of the calendar year in which the original owner would have reached age 701 then the second to die spouse is treated as the new owner with the rules of Situation 2 being applied if the second to die spouse has a designated beneficiary or Situation 3 if thereis no designated beneficiary If the spouse dies after the year in which the original owner would have turned 70 7 the distributions become term certain with the term set to the spouse s life expectancy in the year of death Again this works the same as the old term certain method with the life expectancy being reduced by one for each yea
75. dit Setup Online Help 9 How to Use the Action Section for further information Discover Scenarios Solutions Acton 1 Select and click Action on the Edit drop down list 27 RetireNow Users Manual Setup Drop Down Menu File Edi Setup nin Help See Chapter 4 Preparing RetireN ow for Use ere craton ore x Configuration and Setup e Account Setup k Insurance Hates Setup k S amp P S00 Growth Forecasts Advisor Setup Infarmatian HTML Setup Liquidation Details Global Rates Estate Tax Calculation Online Drop Down Menu Online Menu File Edit Setup Online Help The Online Menu gives you various options for e mail support and viewing web sites You can access the list by clicking Online on the menu bar E mail Technical Support 5cenariaM ow Web Site Brentmark Web Site Online E mail Technical Support E mail Technical Support launches your default e mail application already set up on your computer with anew mail message addressed to ScenarioN ow technical support E mail can be used to obtain answers to questions or resolve technical problems 1 Select and click E mail Technical Support on the Online drop down list Your default e mail will open a new message 2 Enter the subject 3 Enterthe e mail text 4 Send email Online ScenarioNow Web Site ScenarioN ow Web Site launches your default web browser application and the ScenarioN ow Web site You must be connected to the Inter
76. duct Library displays additional products and services availablefrom ScenarioN ow 1 Select and dick ScenarioN ow Product Library on the Help drop down list Software Training Software Training displays information about the ScenarioN ow software training l Select and dick Software Training on the H elp drop down list License Agreement License Agreement displays the ScenarioN ow license agreement 1 Select and click License Agreement on the Help drop down list About A bout displays information about the release of RetireN ow and how to contact ScenarioN ow and Brentmark Software 1 Select and dick A bout on the Help drop down list 30 RetireNow Users Manual Configuration and Setup RetireN ow has default values that must be set up prior to conducting a planning session with your client The values are entered once then retained and saved by RetireN ow for future use They can be created to meet the needs of your clients Configuring and setting up RetireN ow is a simple task that can be accomplished in a relatively short period of time Before starting you should review the directions below and collect the necessary information and data to complete the process Gathering the required information prior to starting will save you time and provide a base understanding of the data and information you and your clients will be working with Configure Setup Menu The Setup Menu lists a set of parameters you will need
77. e used during the financial planning process Account Setup Sweep Account Insurance Rates Setup d Gift Account S amp P 500 Growth Forecasts Retirement Accounts Advisor Setup Information HTML Setup Location of Data Files e Sweep Account e Gift Account e Retirement Accounts Liquidation Details Global Hates Estate Tax Calculation Sweep Account Setup Cash from excess income liquidated assets and dividends not reinvested will be placed in the Sweep Account It is an asset with a growth rate di o Sweep A ccount 2 Enter the name you wish to call the account in the Sweep Sweep Account Setup Name field 3 Enter the projected Sweep Name Sweep M rate Enter a dividend rate Owner Note Growth is compounded without tax Growth Rate until the asset is sold Capital gains are then MILII Tal b applied Dividends are taxed annually 4 Click Saveto savethe information OR click Cancel to exit without Saving your information Save Cancel Help Class Cash and Money Markets E 32 RetireNow Users Manual Gift Account Setup Gifting Functionality Version 2001 01 of RetireN ow is designed to illustrate the effect of gifting cash or assets from a client s estate The Gift Account is used to hold balances from investments cash etc that have been gifted by a client from the Cash Gifts input class of the Discovery Income Uses section or balances added to it by using the Gif
78. ection you have the ability to determine the liquidity of each itemized asset and when to start and stop liquidating it You can set up the liquidation order in Liquidation Details from Setup on the menu bar These assets are only available if you identify them as liquid A schedule or liquidation order can be created for each asset by three different methods 1 Taxability You can determine the liquidation order by Taxability category and by individual asset within each Taxability category 2 Investment class You can determine the liquidation order by Investment Class and by individual asset within each Investment Class 3 Per Asset liquid Basis You can determine the liquidation order by liquid assets by individual asset and category Each method employs the same liquidation technique as described below 1 RetireNow determines an after tax need based upon Income Uses Assets Purchased and Income Sources 2 RetireNow determines which assets are liquid and if there are any restrictions on those assets as you indicated by setting up the liquidation parameters in the Discovery section See Chapter 6 How to Usethe Discovery Section 3 Based upon the above RetireN ow completely liquidates each category or asset until an asset reaches its minimum balance as you indicate by setting the minimum balance in 40 RetireNow Users Manual the Discovery section see Chapter 6 How to Usethe Discovery Section for more details
79. eere os V LE cER For Ep v ERRE E es I av REED 26 Edit DISCOVENY P I 26 Edit SCONANMOS a sescanndodd od riv ORO COR lcd FR HC RR RR DR 26 VIEW Scenarto Results i sous Vwkoa ew ERR ERR Wl x FR ER FRE EA E E FR ERI RU A RE CRR Ra ER ERR FER CENE ERN ERR 26 Select SCenarlO usesxvasusida tvi LEE TRY UN EVIER IE EIS ER dEVVRERA IV OURRR E FER ERVVERVS RED EERM LET ERAS EVER EUEER 26 Create New Scenario iscaedvvsnkxiindis t iR il XR ER CO EIC TR LR RD Rr ERO RR Y RR 27 Delete Scenario secari Gon o dpiacini c e i nC Rn d nion Ro od RR RR 27 Edit SOIUBOLS iiisssps skin a EREKERARN RYRMEEASER CEU CIR WERE EAR ER TOR EAR ICER REM V ERROR D RERO DO N 27 EAE ACHO PTT IT TOT ILI DIIS 27 Setup Drop Down Menu 1 1 eere nnne nnns 28 Online Drop DOWN Menu crisss rive daa Ex rru edt aa Eb o EC ia ead 28 Online Men inencn Gon noi dori oce lc RR NF RT RC T RR 28 Online E mail Technical Support eee eres erre eere enne 28 Online ScenanoNow Web Site cicsssi xai iai RE RERO RR OR ER RE E RC RD ERR REN OR RR 28 Online Brentmark Web Site i io nia iO opi cR R ER DR ERR TR C RC RE D CRT ER CR 28 Help Drop Down Menwu 1 111eneeee erneuern nnn nnne 29 Help Menu sic iiokau iier VV RR Lv xV EAE EYR TELE REO vx cR CUR ERE RE KE ELE RRE RR em EF CIE IE RR VERREM 29 Help CONTINUES uos eiiis kox ka vkE RR ORE a DOR EIE REI FEE EE VER UR ECHO RE ONE
80. eirs Assumed Capital G ains Rate selects a global capital gains rate Trust Transfer G rowth Rate selects a global growth rate for all assets transferred to a trust The Global Rates represent key assumptions used throughout the program It is important to note that growth and inflation rates may be manually overridden in any of the input screens 12 RetireNow Users Manual Estate Tax Calculation Setup Estate Tax Calculation Setup offers three powerful choices regarding Estate Tax calculations for the client Federal Estate T ax The Economic Growth and Tax Relief Act Reconciliation Act of 2001 included significant changes to the federal estate tax The exemption for estate tax purposes increases to 1 million in 2002 1 5 million in 2004 2 million in 2006 and 3 5 million in 2009 with repeal in 2010 In 2002 the 596 surtax and rates in excess of 5096 are repealed with top rates going to 4996 in 2003 48 in 2004 47 in 2005 46 in 2006 45 in 2007 and 0 in 2010 The state death tax credit is reduced by 25 in 2002 50 in 2003 and 75 in 2004 and repealed in 2005 If thereis no change sunset provisions would result in a return to prior scheduled rates in 2011 or atop rate of 5596 with an equivalent exemption of 1 000 000 Estate T ax choices available in RetireN ow Federal Estate Tax choices e 2011 Sunset e 2010 Repeal in 2010 e 2009 Rates in 2009 program default These choices will affect program computations for 2
81. eld Enter the cost basis at which all property was acquired in the Cost Basis field Enter the owner of all real property in the Owner field Note Adding a second client introduces options for his or her ownership joint tenancy community property and a trust Enter the appropriate growth rate for all real property in the Growth Rate field Click the Fill Button to placethe selected growth rate in the Growth Rate column below 1 2 4 5 Schedule T otal Real Property Schedule of Total Real Property eater 5 00 Mina Balance in Year 2001 LEED EE None SOP MIEN Cost Basis Fill All Years a 3 i ears 3 Owner 2001 2002 2003 2004 2005 2006 2007 2008 RetireNow Users Manual 6 Enter thetype of transaction for all real property in the Trx field by clicking on thefield a Noneindicates that no transaction occurs 6 7 b Thelncrease option allows for the asset to increase in value el ua EE 5 00 ial decrease in value Note Using Increase or Decrease allows the user to manipulate the values up or down without triggering a taxable event For example this might simulate a reappraisal made of the real property later on in the simulation that raises the market value higher or lower d TheBuy option allows the client to buy more of the asset Note For real property this might simulate the cost of improvements to the property A Buy transaction uses available cash from the Sweep account to purc
82. ent scenario 26 RetireNow Users Manual Create New Scenario Create N ew Scenario provides you the ability to PCR ME create a new scenario that can then be updated in the Scenarios section See Chapter 7 How to Use Base Scenario the Scenarios Section for further information New Scenario 2 l Click Create N ew Scenario on the Edit drop Create 3 down list Current Scenario Base Scenario 2 Enter the name of the new scenario in the N ew Scenario field OK 3 Click Create to create the new scenario OR dick OK to exit without creating a new scenario Delete Scenario Delete Scenario provides you the ability to delete an existing scenario See Chapter 7 How to Usethe Scenarios Section for further information Select a Scenario to Delete 2 Base Scenario 1 Select and click Delete Scenario on the Edit drop down list 2 Select and click the scenario you wish to ET 3 de ete Current Scenario Base Scenario 3 Click Delete to delete the highlighted scenario OR click OK to exit without OK deleting a scenario Edit Solutions Solutions will take you to the Solutions home page See Chapter File Edit Setup Online Help 7 How to Usethe Scenarios Section for further information Discover Scenarios P Solutions Acton 1 Select and click Solutions on the Edit drop down list Edit Action Action will take you to the Action reports page Seethe Chapter File E
83. entries OR click the Clear Schedule button to clear your entries OR click the Cancel button if you wish to exit the Schedule without saving any information 61 RetireNow Users Manual I ncome Uses Class Level To enter data at the Income Uses Class level 1 1 Placeacheckmark in the Total Calculateboxby EER iv ec TH TIE JP dicking the box 2 Enter a valuefor the client s annual remize spending budget accounting for such LL items as house food vacations Spending 1 0008 T tuition etc in this section This represents a Summary M ode input for the Spending Class 3 Click the Details button if you wish to model income uses by year or model the effects of inflation 3 If you clicked the details button to model income uses please refer to the Income Uses Details Button section Income Uses I tem Level To enter data at the Income Uses Item level 1 1 Placea checkmark in the Total Calculatebox by Fa Calculate dicking the box 2 Click theltemize Income box next to itamizs the spending category to place a Income checkmark in the box CEE 3 Click the Itemize button Spending mm Y 4 Click theA dd button to add an entry 3 2 OR click the Edit button to change a previous entry OR click the Delete button to delete an entry OR dick the OK button to save all ng Add entries and return to the Income ane CENE Uses screen m ra 5 If you clicked the Add or Edit button enter the detail E
84. eriod of time d TheGift option allows for the client to gift a portion of the cash values of the policies in a specific year or over a range of years See Real Property Details Button for more information on the Gift transaction 22 If applicable enter the value of the transaction for the year in which the transaction occurred in the Transaction Amount column field 23 Make an entry for the cash value growth rate of a specific year in the CV Growth Rate column by clicking on the desired field 24 The Cash Value Y ear End column indicates the cash value of all policies at the end of the year in the analysis 25 The Death Benefit Y ear End column indicates the value of the death benefits for all policies and annuities at the end of the year 26 Click the Save button to save your entries OR click the Clear Schedule button to clear your entries OR click the Cancel button to exit the Schedule without saving any information 27 Click the Ins Ratings button to enter insuranceinformation e iL about the client Cost of Insurance Per 1 000 of Coverage a Select the client b Select Yes or No for 27a John Smoker Smoker Current Policy Sample Current Rates c Click on the policy you wish to select for your Select a New Policy client Seelnsurance zLugd EMO RUE 0 41 Sample Guaranteed Rates Rates Setup in Chapter 3 John 0 42 Menu Items for further 0 44 information and 0 45 explanation 0 47 d Click the Save butto
85. ft arrow button displays the previous page viewed Theright arrow button displays the next page that was viewed The Stop button stops loading the page UB wNrBD N O 5 1 Ele Edt Setup Onine Help AAO ELT Discovery Scenarios Solutions Action Action List amp Reports 7 Address Forms Home Prini 4 3 Fixed Annuity Application Important Please Read Status Done 113 RetireNow Users Manual Po Appendix A Glossary 401 k A qualified retirement plan into which an employer and an employee contribute pre tax dollars to an investment pool Contributions to a 401 k are tax deferred 403 b A 403 b similar to a 401 k is a tax deferred retirement plan that lets employees of a tax exempt education or research organization to contribute pretax dollars to an investment pool 5 By 5 Power See Crummy Power 50 Percent Rule In any one year a tax deduction is limited to 50 of the donor s adjusted gross income Some contributions may be limited to a 2096 or 3096 deduction 10 000 Annual Exclusion Gifts of up to 10 000 per year may be madeto any person without paying federal gift or estate taxes Gifts of more than 10 000 may be subject to gift taxes and will reducethe amount of the donor s unified credit A Agent A person given the authority to act on another s behalf A mortization Distribution M ethod A method of distribution from a qualified retirement plan called a
86. hase more of an asset e TheSell option allows the client to sell part or all of the asset Note Sell transactions add the dollar amount to available cash in the Sweep account You should police yourself in the Real Property screen as you can t sell off part of a house f TheGift option allows for the client to gift a portion of the asset Note Gift transactions transfer the dollar amount entered out of the asset and into the Gift Account to remove that portion gifted from the client s taxable estate You should police yourself again in the Real Property screen as you can t gift part of a house Gift transactions ARE NOT subject to Gift Taxes and no check is made against the client s annual exclusion limits The Gift transaction can be a powerful way to simulate transferring the bulk of an asset out of an estate and effectively using up the client s lifetime exemption 7 f applicable enter the amount of the transaction in the A mt Field 8 Click the Fill button to place the transaction amount in the Transaction A mount column in thelower portion of the screen 9 Click the Fill All Years button if you wish to have the value in the Growth Rate field and the value of the transaction amount field selected for the entire period of analysis OR a Click theFill Certain Years button if you wish to have the value in the entice 5 00 EZ Growth Rate field and the transaction amount placed below for a specific ees None aT c The
87. he Beneficiary Birthdate field and the Beneficiary s year of death in the Beneficiary D eath Y ear field Note If spouse is the beneficiary his her birth date and projected year of death will automatically fill in and be grayed out This information can be changed in the Personal Information screen If the choice is Charity birthdate and death year are not necessary and are grayed out 4 Click the Save button to save information entered OR click the Cancel button to exit without saving entered data 401 k Enter the value of all 401 k plans in this section Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item Note To simulate additional contributions to a 401 k or IRA account by a client use the Increase transaction These contributions occur outside the cash flow analysis of the program with pre tax monies remember that the Increase Decrease transactions allow asset values to be manipulated without triggering taxable events IRA Enter the value of all traditional IRAs in this section Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item Roth IRA Enter the value of all Roth IRAs in this section Note RetireNow will assume that all Roth IRAs have been held for a peri
88. he Scenarios section is a feature rich display of your client s assets and the possibilities open to them Useit well and havefun doing it Solutions RetireN ow Solutions is a gateway to educational content product information unique to your company and practice and helpful presentation tools to guide your clients through their decision making process Your company may develop a different content and navigational structure to better suit your needs To find out how please contact ScenarioN ow at 866 272 3627 or Sales scenarionow com Action The Action section is composed of a list of features that will allow the advisor and client to take action It features three areas Action List The action list provides a series of checklists that the advisor may use to be certain that the client has received a comprehensive retirement strategy Notes and comments may be entered at the bottom of the list 15 RetireNow Users Manual Reports T he reports function allows the advisor to select and print a variety of reports that contain the data and outputs of the Discovery and Scenarios sections Forms The Forms area is intended to provide you with the required product forms applications disclosures etc which can be printed by you and completed with the client Forms require customization by you or your firm ScenarioN ow has supplied example forms Your company may develop a different content and navigational structure to better suit
89. heprintlink will print the page E ScenarioNow VIP Series RetireNow 2001 00 Pre release 3 9 File Edit Setup Online Help OPI 1 os Discovery Scenarios Solutions Action CMON RN Home Print S i N R E Visual Interactive Planning What will we do today Case Studies TR y Whatis ScenarioNow FS L WA d E A g ri WD y EOL LEC Advisor Web Resources Presentations bs ScenarioNow Links Retirement Income Planning Glossary 5 i Important Please Read Sf E N ARIC Qa NEL Done 47 RetireNow Users Manual Web Navigation The Home section also acts as a browser to access the Internet Connect to the Internet Type in the desired web address in the Address field OR Click on the arrow to display a list of built in links Click the Go Button OR press the Enter key The web may be navigated through the Back Forward and Stop buttons These buttons also work when navigating through the H ome Section Click the Back Button to return to a previous screen Click the Forward Button to enter a screen Click the Stop Button to stop loading a screen Click the Home Button to return to the RetireN ow H ome section BUNRKNIEHG e ou SCENES UM Discovery Scenarios Sar ree fe Fe DIE What is ScenarioNow HOME Tools for Serious Play 48 RetireNow Users Manual Topics Home includes the following standard content
90. hicles so that no estate taxes will be paid Any income taxes due at that death will be assessed and displayed in the Wealth Transfer graphs in the Scenarios section All assets held in the first spouse s name and in joint tenancy will become assets of the surviving spouse Assets that have named beneficiaries will pass to them as designated Place a checkmark in the Include field to include this person s information in the analysis Note Including another person in the analysis will allow all data inputs to have characteristics unique to that person or shared jointly with the first client such as Income Uses and Sources J oint Tenancy in property ownership etc Click the A ddress button File Edit Setup Online Help SCENARIC EIN S Discovery Scenarios Solutions Action Personal Information Employment Information Title eo DES Income Uses First Name 100 000 Income Sources Income Sources Last Name Real Property 67 127 Birth Date Real Property Non working Assets 700 000 Business Assets Retirement Age Non Working 305 000 investments Gender Business Retirement Plans First Year of Analysis 2 500 000 Investments Insurance Year of Death Use Life Exp 850 000 Years to Illustrate 453 Retirement 500 000 Address Ins Cash Value 20 000 include Susan s Info ine Death Benefit 200 000 57 RetireNow Users Manual 16 Enter the client s address in the Address field 17 E
91. hip in a company Estate All assets owned by an individual or couple 117 RetireNow Users Manual Executor Theindividual designated by the probate court to carry out the terms of a will F Fair M arket Value The price negotiated between a willing buyer and a willing seller Federal Estate Taxes A tax imposed upon the transfer of property to beneficiaries Fixed Annuity A fixed annuity guarantees a certain level of interest earned interest and income options The insurance company credits interest and taxes are not paid on earnings until a withdrawal is made or annuity income Is received Future Interest An ownership interest in property that is delayed until a future date G Generation Skipping Transfer Tax GSTT A tax on the transfer of assets that skip a generation Gifting The willing transfer of property to another Grantee The buyer or recipient of a deed Grantor The seller or giver of a deed H Incapacity Lacking sufficient mental abilities to make the appropriate legal and financial decisions This determination is usually made by a physician 118 RetireNow Users Manual Individual Retirement A ccount IRA A retirement account Contributions to an IRA aretypically limited to 2 000 per year and the value of the account grows at a tax deferred rate until funds are withdrawn Insurance A contract between an individual and an insurance company in which theindividual contributes fund
92. i icacesSiuuscsaseuiiaCEmM a PR d M NER SRERD VES a ERU EU MREEMRE Eel REEUU UMEN EE 88 Insurance tem Level 2n enhn n uauuuuuuuuuuuuuuuuuuaRRRRRRRRRRRRRRRRRRRRRRRERRRRRRRA 88 Life TSU CAINGO RED ETE 88 VIRI TIR RECIPIT EON ELI 89 Chapter 7 m2 254 caza a CN NDE EE OL Scenarios SECON isisisi easda ANASA AAPEA IERI ro Es 91 Scenarios Maintenance ssssssssssnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnaa 92 Create New Scenario 5s ea ia ed x fiic P GG C RERO IORDANIS 92 Example Editing the Data Tree for Income Uses 94 Selectinig a Scenario 556a ix exo cosuvosas aaaea ir EAA CN FAEERE aA NRERRTKR DP READ EEE 95 Edit Current Scenario siiis suci V EeRR CREE REM NI SENE MESE ES Ki CI CU P RENE KV RNFU EUN EUREN E REM EN FEN EE 96 Delete Current Scenario 5isxexue kk do ROGO OEC RR CR T C AER UG ER RD TCR ARR 96 Viewing Graphs and Reports 1111eeeeeeeee erre 96 Graphis oso oO i bu aoro AANA NENE 97 ss Ro PO M 98 Scenario ComparTSOll 5a xexiu ah Rx E ARE REESE RE XXX FR CEREREM OUR ERE nnan 99 Comparison Graphs and Reports Leer errore eene nnne nnn nnn nn ann 100 GLANS ixi cian DOO CORO OC OR GRO OO RUE URGERE DR OUO RR RD nO GR ER 100 arse goce 101 Chapter eT wn duwubueeace Sede edceMeneNG E RE EE E E 102 Soltions SECTION icis ob
93. icts client scenarios enabling the advisor and the client to make an intelligent and informed decision The ScenarioN ow VIP Series consists of four additional software products that will complement RetireN ow The products currently in development are SaveN ow V asset and wealth accumulation prior to retirement CollegeN ow V financing a college education DivorceN ow V divorce or separation finance planning BusinessN ow financial planning for family and small businesses ScenarioNow Contact I nformation CENAR Now ScenarioN ow Inc 4920 East State Street Suite 1C Rockford IL 61108 Telephone 815 227 4144 or 866 272 3627 Fax 815 397 4536 E mail info scenarionow com Sales inquiries sales scenarionow com Web address www scenarionow com 17 RetireNow Users Manual Brentmark Software Contact I nformation ScenarioN ow has partnered with Brentmark Software to bring you RetireN ow Brentmark Software provides financial planning software products and services for a wide variety of financial professionals and consumers For inquires or comments on current or future products directly contact Brentmark at Brentmark Brentmark Software 3505 Lake Lynda Drive Suite 212 Orlando FL 32817 8327 Telephone 1 800 879 6665 or 407 306 6160 Fax 407 306 6107 E mail salesabrentmark com WebAddress www brentmark com Product Support ScenarioN ow and Brentmark Software provide telephone and
94. ife expectancy number Here s how it works Situation 1 Owner still alive If the owner is still alive the distributions are based on the divisor found in the M DIB table for owner s age The MDIB tableis a published table of joint life expectancies for an owner and a beneficiary who is ten years younger than the owner It simplifies the calculation to only using the owner s age No beneficiary information is needed and no recalculation options are available Thereis only one exception to this rule for cases involving spousal beneficiaries that are more than ten years younger than the owner Situation 2 Owner dies with nonspousal beneficiary When the owner dies with a nonspousal beneficiary a term certain distribution period is established based on the designated beneficiary s single life expectancy in the year after the owner s death As with the old term certain method this life expectancy is simply reduced by one for each year after it is calculated Situation 3 Owner dies with no beneficiary Thisistheonly situation wherethe owner s required beginning dateis relevant If the owner dies before the required beginning date and there is no beneficiary alive as of 12 31 of the year following the owner s death the five year rule applies all the money has to be distributed within the next five years If the owner dies after the required beginning date and there is no beneficiary alive as of 12 31 of the year following the owner s
95. ing point for a new scenario Comparison Scenarios Y ou may create a comparison scenario to compare with the client s base scenario To create a comparison scenario l Click the Analysis tab Click Create N ew Scenario Enter a namefor the new scenario in the name box The Data Tree window below the name box lists the same input categories and contains the same information that appears in the Discovery section These values may be manipulated Click the plus sign or double dick the category nameto view the subcategories or items Edit the details of an item by double clicking on the item An Edit window appears to add the required data and information Fill any values as appropriate Click Save to savetheinformation Different scenarios that are already created can be switched to the active scenario for viewing by dicking in the Current Scenario box or using the Edit gt Scenarios gt Select Scenario choice from the main tool bar at thetop of the screen 2 To compare different Scenarios dick the Comparison tab Select the scenarios to compare in the lower left portion of the screen by clicking in the box next to the Scenario name to include it Click the Calculate Comparison button to compare each of the selected Scenarios N ame your comparison in the Comparison N ame box Note that you can switch back and forth between the Graph and Report tabs above the graph window just as freely as when viewing a single scenario T
96. ittle or no earned income for the year This additional contribution will eventually increase from 250 to 2 000 Standard of Living The amount of goods and services required to live a given lifestyle Stepped U p Basis The higher income tax basis that becomes available to an heir following the death of the former property owner Stock Split An increase in the number of shares of a company In a2 for 1 split the stock loses half of its value but doubles in quantity All splits work in this fashion and valueis neither added nor lost T Taxable T ermination An event typically the transfer of property which triggers a tax Tenancy by the Entirety An arrangement whereby a married couple owns property jointly and when one spouse dies the other becomes the sole outright owner of the property 123 RetireNow Users Manual Tenancy in Common A property ownership arrangement in which two or more persons own property jointly Unless thereis a right of survivorship ownership percentages usually remain unchanged upon the death of one of the owners Time Horizon The period of time an individual is willing to keep his or her money invested Trust A legal entity in which a person or institution known as atrustee holds the right to manage the assets of a beneficiary in accordance with the specific guidelines stated in the trust agreement Trustee A person or corporation empowered by a trust to manage the administration of an es
97. l land owned by the client s business Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Buildings Enter the value of all buildings owned by the client s business in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item 75 RetireNow Users Manual Other Enter the value of all other business assets owned by the client in this section Items here would include notes receivable inventory work in progress and other significant assets from the balance sheet of a client owned business Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item I nvestments Enter the value of all of the client s investments in this section Investments may be broken down into Taxable Tax Deferred Tax Exempt Equities and Other Classes Retirement plans IRA s and stock options inside a retirement plan may be entered in the Retirement Plans Category Data can be entered in the same levels as previously described in Entering Monetary Values and Real Property Data Entry Please see these sections for further information rn DECR Ha re Ghosvers
98. low for a specific T None UNS 1888 number of years Fill All Years b Enterthedient sageforthefirst Fill Certain Years year of the specified number of years in the Start A ge field Start Age IE Stop Age C Enter the client s age at the last year b A of the specified number of years in the Stop A ge field Note The Fill All Years or Fill Certain Years buttons can be used in combination with either the Growth Rate or Dividend Rate buttons to produce a dynamic range of results The Year Transaction Growth col umn Transaction Amount Rate Dividend indicates a 0 00 range of years in Jur the analysis Tu 0 00 The A ge col u mn 0 00 indicates the age 0 00 of the client in 0 00 the analysis The Begin of Y ear column indicates the value of the investments at the beginning of the year If applicable enter the appropriate transaction for a specific year in the Transaction column field by clicking a specific year in the column a Noneindicates that no transaction occurs b Thelncrease option allows for the asset to increase in value Note This does nottrigger any taxable events but allows values to be increased c The Decrease option allows for the asset to decrease in value Note This does nottrigger any taxable events but allows values to be decreased d The Buy option allows the client to buy more of the investments The cash to do so is taken from the Sweep A ccount e TheSell option al
99. lowsthe client to sell some or all of theinvestments over a period of time Cash created from the saleis deposited into the Sweep A ccount f TheGift option allows for the client to gift some or all of the investments over a period of time See Real Property Details Button for more information If applicable enter the value of the transaction for the year in which the transaction occurred in the Transaction Amount column field Enter the growth rate for all investments for a specific year in the Growth Rate column field Enter the dividend percentage for all investments for a specific year in the Dividend column field 79 RetireNow Users Manual 24 The Adjusted Growth column indicates the percentage of growth of the investment for the given year according to the parameters selected in the S amp P forecast field and or the combination of the growth and dividend rates For example if the S amp P Growth Forecast is set to None Reinvest Dividends is set to Y and Growth is set to 5 with Dividends of 296 the Adjusted Growth rate would display 7 25 The end of year column indicates the value of the investment at the end of the year 26 Click the Save button to save your entries OR click the Clear Schedule button to clear your entries OR click the Cancel button to exit the Schedule without saving any information OR 27 Click theLiquidation Info button to select liquidation parameters for all investments a Enter the minimum
100. loyment Information i Base Scenario Dotais Detaiis ETY Details D Income Uses Income Uses 10 000 Ff Social Security Income Sources 0 Pension Real Property Work Real Property Non working Assets Rents 95 000 Tax Credits Details Details Details Details Details Detaiis Non Working 32 100 Business Assets Annuities Investments Business o a m v Deferred Comp Disability Retirement Plans 2 110 Investments Insurance 9 360 Ff Long Term Care Other Retirement 17 450 Ins Cash Value 203 030 Ins Death Benefit 20 500 ee a ae a aa a 0 Total Calculate Entry in the Income Sources detail is identical to that in Income Uses except the columns labeled Inflation Rate and Inflated Amount in the Detail and Itemized fields are now labeled Growth Rate and Growth A mount Note Remember that all inputs here as in Income Uses should be in AFTER TAX figures For example if 50 000 is the take home amount for the client s pay from work that figure would be entered A helpful way to remember what figures should be in this category is to ask the client What dollar amounts are you RECEIVING from these items AFTER TAX 65 RetireNow Users Manual Social Security Enter the annual amount of the client s social security benefits in this category Notethat the program does not provide this figure The advi
101. me Uses Assets Business Assets Total now overrides all above items Non Working Total ETEO Details 0 Business Retirement Plans 0 investments Values represent balances in year 2001 Investments 0 Retirement 0 Ins Cash Value 0 Ins Death Benefit 0 I nsurance Category Level To enter data at the Insurance Category level 1 Click the Total Calculate Box and Total now overrides all above items removethe checkmark When Total W Calculate 0 Details unchecked the Total Calculate Box n SoM overrides figures entered in the categories above and represents a grouping of all ife insurance assets for the dient Enter a value in the Total field Note This value represents accumulated Cash Values in client policies only Be sure to click the Details button to add other attributes If you enter a figure here when the Details button is clicked the question Is this a term policy will default to No 3 Click the Details button to add other attributes such as the death benefit of the policies 84 RetireNow Users Manual I nsurance Details Button If you clicked the details button to model a group of Life Insurance policies in Summary Mode l Wm amp UN 8 9 Enter Yesor No in Isthis a term policy field Note Selecting Yes here will simulate a Term Insurance Policy and has the following effects Cash Value Death Benefit Option Cash Value Growth Rate and Cash
102. n in 2002 1 5 million in 2004 2 million in 2006 and 3 5 million in 2009 with repeal in 2010 In 2002 the 5 surtax and rates in excess of 50 are repealed with top rates going to 49 in 2003 48 in 2004 47 in 2005 46 in 2006 45 in 2007 and 0 in 2010 The state death tax credit is reduced by 25 in 2002 50 in 2003 and 75 in 2004 and repealed in 2005 If there is no change sunset provisions would result in a return to prior scheduled rates in 2011 or a top rate of 5596 with an equivalent exemption of 1 000 000 Estate Tax choices available in RetireNow Federal Estate Tax choices e 2011 Sunset e 2010 Repeal in 2010 e 2009 Rates in 2009 program default These choices will affect program computations for 2010 and later years only 2011 Sunset current law with sunset Assumes repeal occurs in 2010 and prior law returns in 2011 with a 55 top rate and 1 million exemption This is way the tax law is currently written This may be a reasonable assumption if one believes that no changes to the current law are likely and that the sunset provisions will prevail One of the other two choices may be a better assumption if one believes that the sunset provisions will not beimplemented dueto futurelaw changes 2010 Repeal in 2010 4 current law modified to remove sunset and make repeal permanent Assumes repeal becomes effective in 2010 and stays effective thereafter This is what was originally intended by thetax writers b
103. n to 0 48 save your entries OR click 0 50 the Cancel button to exit 0 51 the Schedule without ut saving any information OR click the Help button for help 87 RetireNow Users Manual I nsurance Class Level 1 To enter data at the Insurance Class level Total Y ETELE 1 Place a checkmark in the Total Itemi Calculate box by clicking the box ILS 2 Click the Details button to model the client s policies Life Insurance PESON 2 If you clicked the details button to model Insurance please refer to the Details Button above I nsurance Item Level Enter each life insurance policy separately in this section To enter a list of separate life insurance policies ltemize 1 Click the Itemize Assets box Assets 2 Click the Itemize button to model the iPass EY client s insurance policies 3 Click theA dd button to add an 2 1 entry OR click the Edit button messes to change a previous entry OR click the Delete button to a delete an entry OR click the Add OK button to save all entries EUM and return to the Insurance Delete screen 4 If you clicked the Add or Edit ET Un button enter the detail information for the item 5 Enter the name of the item in the Name field 6 Theremaining fields to enter arethe same as the Details Button previously described for the Insurance Category Class Please refer to the Details Button under Category All Class and Item data entry operates the same for the In
104. na rener ss SOM retire nee None b Enter the client s age for the first east year of the specified number of ERR a Fill Certain Years years in the Start A ge field c Enter the dient s age at the last Start Age NEG Stop Age 95 year of the specified number of b c years in the Stop A ge field 16 The Year column indicates a span Annual Death Cash Value Transaction Growth of years for the Year Age Premium Benefit Transaction Amount Rate analysis f so None Say 5 00 0 None 0 5 00 17 The A ge column X None DT e cove indicates the age so None so 5 00 of the dient f 0 None LL 18 Make an entry to a specific year in ps0 o None so 5 0075 the annual premium column by clicking on the desired field 19 The Cash Value Y ear Begin column indicates the cash value of all policies in the analysis at the beginning of the year 20 Make an entry to a specific year in the Death Benefit column by clicking on the desired field 86 RetireNow Users Manual 21 If applicable enter the appropriate transaction for a specific year in the Cash Value Transaction column field by clicking on the desired field a Noneindicates that no transaction occurs b TheAddition option allows for funds to be added to the cash value of the policies over a period of time c TheWithdrawal option allows for cash valuefunds in the policy to be withdrawn over a p
105. nario section for a client Each new scenario uses the base scenario data as a starting point for your new scenario Y ou can modify the base scenario from the Scenarios or Discovery section All other scenarios 2 thru 5 should be modified from the Scenarios Section File Edit Setup Online Help Non 7 Sena Home Discovery Scenarios Solutions Action Panaiysts Y Comparison cNet Worth SE coe Cash Flow 44 000 000 42 000 000 eAllocation 40 000 000 eWealth Transfer Ie 116111 eMisc 32 000 000 30 000 000 Current Base Scenario ia aaa EX 22 000 000 Edit Current Scenario 20 000 000 16 000 000 14 000 000 12 000 000 R Delete Current Scenario 10 000 000 p l 8 000 000 Sar T 6 000 pl gm 6 000 000 ae 4 000 000 m aa 2 000 000 0 L L L L LI 2001 2005 2011 2017 2023 2029 2035 2041 55 54 59 58 65 54 71 70 7776 83 82 89 88 95 94 Year Ages EHE Total Real Property Total NonvYorking C Total Business Assets EX Total Investments BH Total Retirement E Total Insurance B Create New Scenario Manipulating data sets to produce alternate scenarios can appear fairly involved and complex at first We suggest creating sample data sets and manipulating their values Once you are comfortable with the many features the Scenarios section offers you will become skilled at 91 RetireNow Users Manual producing alternate possibilities on the fly for you
106. nd prior law returns in 2011 with a 55 top rate and 1 million exemption This is way the tax law is currently written This may bea reasonable assumption if one believes that no changes to the current law are likely and that the sunset provisions will prevail One of the other two choices may be a better assumption if one believes that the sunset provisions will not be implemented due to future law changes 2010 Repeal in 2010 current law modified to remove sunset and make repeal permanent Assumes repeal becomes effective in 2010 and stays effective thereafter This is what was originally intended by the tax writers but ultimate repeal remains uncertain due to the inclusion of sunset provisions This may be a reasonable assumption if one believes that the sunset provisions will not be implemented and repeal will ultimately prevail 2009 Rates in 2009 current law modified to continue estate tax with no repeal Assumes repeal never occurs and last scheduled rates are used in future years This may bea reasonable assumption if one believes that repeal is unlikely to occur This is the program default 45 RetireNow Users Manual Home Section Home is the launching point for using RetireN ow with a client Home provides a place to introduce your company to your prospects and clients through web site links slide shows and presentations Home uses HTML based content Through Home you have the ability to access corporate or public web
107. nderlying detail numbers for the graphs Note For all reports client years of death are highlighted in blue 96 RetireNow Users Manual Graphs 1 WN Select and click the Analysis for the current scenario or Comparison for comparing two or more scenarios tab Select and click the desired scenario in the Current Scenario field Click the Graphs tab above the display window Click the desired category button and the matching selection field Available graph and report choices for the category button will be displayed 3 File Edit Setup Online Help Revie f Home Net Worth Cash Flow Discovery f Solutions Action eWealth Transfer Allocation Ownership eMisc Current Scenario Ez Edit Current Scenario zi amp Create New Scenario Delete Current Scenario E 400 000 200 000 100 000 0 L LU LI LI LI 2001 2004 2008 2012 2016 2020 2024 2026 2032 2036 2040 56 59 63 67 71 75 79 83 87 91 95 Year Age EHE Total Real Property E Total NonivVorking C Total Business Assets XXX Total Investments HS Total Retirement EJ Total Insurance A specific valuein the graph may be displayed by placing the cursor on the desired portion of the graph and clicking An information box will be displayed with the details Item Income Sources Year 2010 Value 15 585 John s Age 65 97 RetireNow Users Manual Select and click the Analysis for the current scenario
108. nding is an example of a data input Class which is inside the Category of Income Uses Item describes a specific input item inside a Class note that you can only itemize data inputs in Itemize mode Standard of Living may be an example of a data input item insidethe Class of Spending which is itself insidethe Category of Income Uses Select Account Setup The Account Setup selection provides a list of parameters for three key accounts and allows you to set up growth rates and other information for these accounts Sweep Account is used to store excess cash that is not reinvested or depleted by income uses Cash from liquidated assets is automatically placed in the Sweep A ccount Gift Account is used to store balances of assets that have been gifted by a client via the Cash Gifts input class from the Discovery input category Income Uses and all gifts made by the Gift transaction in the asset screens Retirement Accounts sets up defaults for Pre 59 72 distributions from Retirement accounts 10 RetireNow Users Manual I nsurance Rates Setup Insurance Rates Setup displays the cost of insurance per 1000 of coverage for a client and provides the capability to set up insurance policies for male and female smokers and non smokers Insurance policies are set up using the Maintenance function and selected by using the Client Setup function Maintenance Allowsthe advisor to add modify or delete insurance policies
109. ne Help GIC SG ew Home Discovery Scenarios Solutions Action Net Worth Cash Flow L 32 1 1 110a Transfer 3 800 000 3 600 000 Net Worth Comparison 3 400 000 q2 n nnn Po Zz Jev YUU 3 oO a0 0 DO 2 800 000 2 Comparison eal Name Comparison 2 600 000 2 400 000 Select the scenarios to T compare 2 000 000 Base Scenario 31 800 000 3 Scenario1 1 600 000 Scenario2 1 400 000 1 200 000 1 000 000 800 000 meran aAa EUER a 4 _ 2Calculate Comparison pem 2001 2003 2015 2018 2021 56 56 70 73 76 67 Year Age Gl Base Scenario Bl Scenariot Bill Scenario2 Help 99 RetireNow Users Manual Comparison Graphs and Reports Whilein Comparison you havethe capability to select graphs and reports that are available by the category buttons located in the upper left input box Each of the first three buttons Cash Flow Net Worth and Wealth Transfer will have a graph and report that represents the data previously entered for each scenario Thereports provide the underlying detail numbers for the graphs Note Allocation Ownership and Misc categories are not available in Comparison Graphs To create and view a graph in Comparison Select the Comparison tab Click the Graphs tab abovethe display window Click a category button Click Calculate Comparison Results N ot Current Press Calculate may be displayed Click the Calculate Comparison button if you seethis
110. net to browse the ScenarioN ow web site l Select and dick ScenarioN ow Web Site on the Online drop down list Online Brentmark Web Site Brentmark Web Site launches your default web browser application and the Brentmark web site You must be connected to the Internet to browse the Brentmark web site 1 Select and click Brentmark Web Site on the Online drop down list 28 RetireNow Users Manual Help Drop Down Menu Help Menu EN ume The Help Menu provides access to the Seach For Hab Dn RetireN ow Help content and information E HelpForCureni Screen FI about other ScenarioN ow products services Home ScanaioNow Product Library and the software license agreement You can Softee Training access the list by clicking H elp on the menu a ee EEA gemeni Help Contents Help Topics ScenarioNow px Contents will display the available help 2 Contents index Find topics Click a topic and then click Display Or click another tab such as Index We Welcome ta RHetireM ow l Select and dick Contents on the H elp 3 drop down list 2 Click the Contents tab 3 Doubleclick the topic you wish to see OR highlight the desired topic with your cursor and click Open OR click Cancel to exit Online Help 4 Doubleclick the item you wish to see dz Discovery Overviews Discovery Personal Information Employment Infermatian Income Uses Income Sources Mon w arking Assets Business Assets Investments
111. nne nana uua aa naa ananas 17 ScenarioNow Contact nformation eene 17 Brentmark Software Contact I nformation 18 Product SUPPO ico imo aa 18 PAN INOS E S E A E E A E E EE E 18 Technical Requirements e ecce eeeeeeee nennen nena nnn nnne 19 Trademarks Service Marks Patents 19 Chapter 2 ossesxax uEEisuEi EEUMNU EEEEIKNSNEEREKUIEEKMPNKUNI MG IrisEallalIOD aiio Door id a E ke E av OD Tr e E YR E Fu a E ERR RE 20 Installation Components eeeeeeeeeeeeeeeeee eee enn nnn nnne 20 Installing RetireNow Components 41 sse 20 RetireNow Users Manual Manually I nstalling RetireNow 21 Uninstalling RetireNOW uisis aora PX DoD ER EX ER cn a o S Ex EE C E RR 22 Start RetireNOW 111eeeeeee eren e eene nnn n nnn nna a uuu u uus u n nnn aaa 23 Chapter Jo csssosssns susx ussuusEEAT Ea sawRRKE aa d MENU FCN c a a 24 File Drop Down MenU sssini 24 Pre il TI UII T 24 Bl Re SEPTIMI 24 Fle SVC RC ITI E WT I ILICE TEILTE ETE 24 File Save AS wER ERO ERGO R E E CR RC HR RNV ECCO 25 File Report ODUONS iiis esl erasa NEN NE RESI FOR EE E VEFVOEKER FERRO UI EEREIRISUMNS E VEREERENENSEME 25 File EXIRET CURE C C DE ORE VR RENDER 25 Edit Drop Down MOU in
112. nt plan must take place This date is typically April 1 of the year after an individual turns 70 12 Residuary Bequest The gift of all or a portion of remaining estate assets after making distributions to specific bequests Retirement Plan A pension or other retirement plan that gives an investor a stream of income Typically these payments do not begin without penalties until an investor retires from employment and or reaches the age of 59 2 Revocable A provision specifically stating the right to change any and all terms within a document 122 RetireNow Users Manual S Simplified Employee Pension Plan A non qualified retirement plan designed for employers with 25 or fewer employees Contributions are made to each employee s IRA until retirement Single Distribution M ethod A type of substantially equal payment method in which the cash value of the account is paid out to the partici pant s over the course of his or her remaining life Special N eeds Trust A trust created to provide for the disabled while retaining the benefits of M edicaid or other public assistance program Specific Bequest Therequest that a specific item or asset be named to a person or entity Specific bequests are usually made at the beginning of a will or living trust and followed by other provisions for the distribution of assets in the estate Spousal Contribution An additional contribution may be madeto an IRA by a worker whose spouse has l
113. nter the client s city in the City field 18 Enter the dient s home state in the State field Address 19 Enter the client s zip codein the Zip Code field City 20 Enter the client s home phone number in the Home State Phone field 21 Enter the client s e mail address in the E Mail field 22 Click OK to savethis information OR click Clear to clear the information shown in this screen OR click Cancel to cancel out of this screen without saving any information 8219879876 Home Phone 8211231234 E mail Bill sample com ZipCode Employment I nformation Enter the client s current place of employment in this section Select and dick Employment Information from the menu Enter the client s work title in the Work Title field Enter the client s occupation title in the Occupation field Enter the name of the client s company in the Company field Enter the client s business address in the A ddress field Enter the name of the city in the City field Enter the name of the state in the State field Enter the zip codein the Zip field Enter the client s business email address in the E mail Address field Enter the client s business phone number in the Phone Number field Enter the client s business fax number in the Fax field If the client is married or another single person is included click the other person s information button and enter the information in the same format as above OONAUBWNE HB e O _ N
114. o nn xa Enn X ska a ag So Ck UDDUDO VER EXER CERE SERE 102 Customization Unique to YOUR Business 102 Solutions Home Page 3 varo ca rera ERR nu EE MEE E EY ERES FEVER REN BE NNR 103 General Navigation Tips eeeeeeeeee eee 104 Solutions TOPICS ciii eer n CERE EE WEE EE 104 Planning Your Retirement 5 cos asi oos aaa RR ER aRRUEPRUEEEERREREREAES 105 Managing nvestments e eLeie ie ie sese enun unu unun uua u uana uana uana ua ua uH uaa 105 Planning Your Legacy eos i weua Rua vsu kx En nERRK ex REN PEEE ER ERE UNENESEKIM NN EU CER UR EYEEEKENEE 106 Estate TOONS ci nica aii sik ERR EIER ERES REO EE YR ERR EREFE EN ERR UEEKERV NRI EXER CK RI FED E EM ER 106 Product SOIUIOHS iiir RIFLES SUE CHEN ETE DN REV RA REI Pa SUE CU C DI RR VUL KRERI Oa 106 elfe RM a a 107 clle re sirida 107 RetireNow Users Manual Chapter Osanna sz wiR REN RIS aRCi Nr SN EsaE LOO ACHON SECCO osos iioi ERU ERN RESCUE EE SRTVE ATAATA 108 ACBOnD CISTS Soir eee did co on ced aon enn e c EUe E SC ERES ERU EUM CD ERI 108 BS SOI ES e 109 AVallable Reports secitcicisccscnsuvecacscnasncccasiavnwcesssudavanssiusncdndsvasusectssudctucnciuaveesauiuens 109 Types OF REPOS airone 109 Clear Selected Reports and Select All Available Buttons 110 Load Group and Save G
115. od of at least 5 years and thus distributions from them will be tax free Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item Stock Options Enter the value of all stock options included inside retirement plans in this section Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item 83 RetireNow Users Manual Other Enter the value of all other retirement plans in this section Please refer to Investments Category Details Button section for entering detail data for a Class and Investments Item Level section for entering detail data for a Class Item I nsurance Enter the value of all life insurance policies and annuities in the accumulation phase in this section Note Life Insurance Cash Values and Annuity Balances are listed in the reports Death Benefits do not show up in the reports until the client dies File Edi Setup Online Help SUM ry Scenarios Solutions Action Personal Information Insurance Employment Information Base Scenario Itemize Income Uses 10 000 Income Sources Life Insurance Eee Details Income Sources 0 Real Property Annuities SOMITE Real Property Non working date Articles Other 5 7 0 pur Inco
116. olice yourself here as a client can have only one primary residence 72 RetireNow Users Manual Secondary Residence Enter the value of the client s secondary residence or the value of all other residences in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Land Enter the value of all land owned by theclient in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Rental Property Enter the value of all rental properties owned by the client in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Other Enter the value of all other properties owned by the client in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Note How to Model Mortgages Mortgages against real property can be modeled in one of two Ways e Method 1 Enter the current market value of the property LESS any outstanding mortgage s againstthe property In the year that the mortgage s a
117. ome Sources should be the desired after tax or out of pocket figure 53 RetireNow Users Manual Discovery Home Page The Discovery home page displays ten categories in which aclient s information is entered Click on a category to select it Personal Information Employment Information Income Uses Income Sources Real Property N on working Assets Business A ssets Investments Retirement Plans Insurance O coro Ur i UP HD H File Edit Setup Online Help SCENIC Discovery Scenarios Solutions Action Personal Information Summa Employment Information Base Scenario Income Uses 10 000 Income Sources M Income Sources SCO UNY 15 040 C Income Uses Real Property A Real Property Non working Assets i r E 95 000 Business Assets LY Non Working 32 100 Investments Business Retirement Plans 2 110 Investments e Personal Informatior e Assets 9 360 e Employment Information Insurance Retirement 17 450 e Income Uses amp Sources Ins Cash Value 203 030 Ins Death Benefit 20 500 General Navigation Tips Hot Keys Some fields may display text when clicked These selections may be chosen with a left mouse click or by striking BHL the key highlighted in blue on the keyboard First Name 54 RetireNow Users Manual FAQs Frequently Asked Questions If an item name turns yellow when you place your mouse over it clicking on it will display a FAQ Fre
118. on Components The RetireN ow installation program will install several components on your hard drive and desktop Each of these components is required to execute the RetireN ow application RetireN ow executable product software that contains the Reti reN ow functionality RetireN ow help files files that contain user and product help HTML files and folders that are the H ome Solutions and A ction Forms content Uninstall program software program to uninstall the RetireN ow components RetireN ow desktop short cut graphical icon placed on your Windows desktop and used to start RetireN ow M acromedia Flash Player media playing software required to play M acromedia movies 7 ScenarioN ow Program File where the RetireN ow program resides on your computer WmBWN D eo I nstalling RetireNow Components l Placethe CD in your CD ROM drive and the installation program will start automatically If the installation program does not start see M anually Starting the Installation Program 2 TheSplash background page with the Welcome box will be displayed a Click Next to proceed or cancel to stop the installation or Back to go to the previous screen b Click Cancel to stop installation you will be asked if you would liketo Resume Set Up or Exit Set Up c Click Resume if you would like to continue with the installation d Click Exit Set Up if you like to stop the installation e Clicking Cancel will not harm your computer The Cho
119. options by clicking in the appropriate box 4 Adjustthe margins by entering the Top Bottom Cover Page V Print Date Left and Right page Table of Contents Print Heading margins in inches 5 Format the Report Title Text Headers and Highlight by clicking the Wi Print Page Numbers font to display the Font dialog box Select the Font Style Size and Effects to apply tothe 4 text and click OK 6 Click Save to save your changes OR click Cancel to Save Cancel Restore Defaults Help exit report options without saving your changes OR click Restore Defaults to reset all the report options to the defaults that were shipped with the product Disclaimer Print Time Monochrome NT Printing Title Report Headers Highlight File Exit File Exit will close RetireNow Remember to save any additions or changes to your current client file before exiting 1 Select Exit on the File drop down list 25 RetireNow Users Manual Edit Drop Down Menu The Edit Menu lists sections within RetireN ow and enables you to perform certain functions or takes you directly to that section Y ou can access the list by clicking Edit on the menu bar Edit Discovery Edit Discovery provides you with a list of File Edit Setup Online Help the Discovery categories to select from 1 Discovery Scenarios k See Chapter 6 How to Use the Discovery ion i Salut Section for further information olubons
120. or Comparison for comparing Select and dick the desired scenario in the Current Scenario field Click the Reports tab abovethe display window Reports 1 two or more Scenarios tab 2 3 4 98 Click the desired category button and the matching selection field Available graphs and report choices for the category button will be displayed Note To view the full details of a report the scroll bars at the bottom and right of the display window should be moved as desired eCash Flow eWealth Transfer eAllocation Ownership eMisc Current Scenario Edit Current Scenario j BTE Delete Current Scenario E p F orapn Y Report Year Real Property 714 000 728 280 742 846 757 703 772 857 788 314 804 081 820 163 836 567 853 298 870 364 887 772 905 527 923 637 942 110 960 953 980 172 999 775 1 019 770 1 040 165 1 060 968 1 082 188 1 103 832 1 125 909 1 148 427 1 171 395 1 194 823 Discovery l Solutions Action Non working 306 300 307 642 309 027 310 458 311 935 313 460 315 035 316 662 318 343 320 080 321 874 323 728 325 643 327 622 329 667 331 781 333 965 336 223 338 558 340 971 343 467 346 048 348 717 351 477 354 332 357 285 360 340 Business 2 500 000 2 000 000 1 500 000 1 000 000 500 000 Note For all reports client years of death are highlighted in blue Investments 872 7
121. or higher 64MBof RAM 128M B recommended OMB hard drive space CD ROM drive Microsoft Windows 95 98 Microsoft Internet Explorer 4 0 or higher Macromedia Flash Player plug in Adobe Acrobat Reader plug in M acromedia Flash Player is available on the RetireN ow CD Macromedia Flash Player may also be downloaded from the M acromedia web site at ww w macromedia com Adobe Acrobat Reader may be downloaded from the Adobe web site at www adobe com Trademarks Service Marks Patents ScenarioN ow M is a registered service mark of ScenarioN ow Inc ScenarioN ow VIP Series RetireN ow and DivorceN ow are registered trademarks of ScenarioN ow Inc Brentmark is a registered trademark of Brentmark Software Inc Microsoft Windows 95 and Windows 98 are registered trademarks of Microsoft Corporation Adobe and Acrobat are registered trademarks of Adobe Systems Inc This RetireN ow software contains M acromedia Shockwave Player and Macromedia Flash Player software by M acromedia Inc Copyright 1995 2000 M acromedia Inc All rights reserved Macromedia Shockwave and Flash are trademarks of M acromedia Inc T n X hu e Pr kE EH BLE 19 RetireNow Users Manual I nstallation Before using RetireN ow it must be installed on your computer and set up An install program is included on the CD that will create the necessary directories and install the necessary RetireN ow components Installati
122. or reports in the Selected Reports window 2 Click theleft arrow button that points toward the Available Reports window OR double click on the report To move the print order of a report 1 Select and click on the desired report or reports in the Selected Reports window 2 Tomoveareport up in the print order click the up arrow 3 Tomoveareport down in the print order click the down arrow Load Group and Save Group Buttons A group of selected reports can be created and saved as the default group of reports Add reports to the Selected Reports window using the steps above Click Save Group to save the selected reports Click Load Group to load the selected reports Click Clear Selected Reports to clear the default group of reports PWNEP 110 RetireNow Users Manual Printing Options Theright side of the screen displays certain printing options availablefor the reports function l ThePrint Button prints all reports in the selected reports field 2 ThePrint Preview button previews all reports in the Selected Reports field 3 ThePrintto File button allows the advisor to save and edit a report s to a word saris processing file or spreadsheet Text files are saved with the extension TXT You can edit them using any word processor file on the hard drive Clicking the Print To File j e Spreadsheet File button wi display the Spreadsheet files are saved with the extension WK1 Exporting Reports box You can impo
123. ose Destination Location box will be displayed a Clicking Next will install RetireNow in the default directory of C Program Files ScenarioN ow RetireN ow b Clicking Back will return you to the previous screen where you can make modifications If you click Cancel you will be asked if you would like to Resume Set Up or Exit Set Up Click Resume if you would liketo continue with the installation Click Exit Set Up if you would liketo stop the installation e Clicking Cancel will not harm your computer an 20 RetireNow Users Manual f If you wish to install RetireN ow in a different directory and folder click Browse and select thelocation ScenarioN ow recommends using the default directory and folder 4 TheStart Installation box will be displayed a b o20n Click Next to start the installation or Cancel to stop the installation Click Cancel if you would liketo stop the installation you will be asked if you would liketo Resume Set U p or Exit Set Up Click Resume if you would liketo continue with the installation Click Exit Set Up if you liketo stop the installation Clicking Cancel will not harm your computer Clicking Back will return you to the previous screen where you can make modifications 5 When the RetireN ow files have been installed you will be asked if you would liketo create a RetireN ow desktop shortcut a b C ampa Click Yes to create the short cut Click No if you do not want a
124. ose the window without saving your data 4 Click Save to save the edit OR click Cancel to close the window Note The editing methodology here in Scenarios is exactly the same as when the data was Originally entered in the Discovery section Once you are comfortable with the dynamics of client inputs editing these inputs in the Scenarios section will come naturally to you Selecting a Scenario Editing and deleting a scenario requires you to select a specific scenario from the Current Scenario field This field will update as new scenarios are created and saved to the client file To select a scenario to edit or delete 1 Click on the Current Scenario Base Secon io field to display alist of available uiia scenarios LLLI Select and click on the desired scenario 95 RetireNow Users Manual Edit Current Scenario Edit Current Scenario allows you to modify an existing scenario make any changes you desire and save it for further reference or for comparing it to other scenarios l Selectthe scenario you wish to edit See Selecting a Scenario above 2 Click the Edit Current Scenario button 3 A Data Tree Window appears to edit the required data and information The key inputs in each input area are identical to those originally entered in the Discovery section 4 Click Savelocated at the bottom of the Scenario data tree window to save your edits OR Cancel to exit without saving The methodolog
125. ot use the uninstall program it is possible to get undesirable results the next time you Install and use RetireN ow l 2 3 Open the ScenarioN ow program folder Click the uninstall program shortcut SJ UNWISE The Select Uninstall Method box will be displayed It is recommended you use the default selection Automatic Click N ext to proceed or cancel to stop the installation or Back to go to the previous screen If you click Cancel you will be asked Are you sure you want to cancel theuninstall Click Yesto proceed or No to Cancel Clicking Next will display the Perform Uninstall box Click Finish to proceed or Cancel to stop the installation or Back to go to the previous screen Clicking Cancel will ask Are you sure you want to cancel the uninstall Click Yesto proceed or Noto Cancel RetireN ow has now been uninstalled Select Uninstall Method 4 ED xj Welcome ta the ScenanoNow VIP Seres HaetireM ow uninstall program You can choose to automatically uninstall this software or to choose exactly which changes are made to your system Select the Custom button to select which modifications are to be made during the uninstall Select the Automatic button for the default uninstall options Press the Nest button to continue Automatic C Custom Repair x Back Cancel 22 RetireNow Users Manual Start RetireNow Start RetireN ow by clicking the RetireN ow icon installed on your Windows desktop d
126. our Scenario by l 2 3 Clicking the Income Uses plus sign to display additional menu categories within Income Uses Clicking the category plus sign to display additional items below the Income Uses items for the category To edit data at the detail level click the item plus sign to edit the detail item Thisis the last level you may go to Key inputs of each item can be edited here such as owner amounts inflation rates etc Different input categories have different key inputs For example editing an item in the Investments category produces a very different list of key inputs than an item from Income Uses does Note When editing data input values in Scenarios new items cannot be added to the data tree Editing the values of previous inputs is allowed here only You are now ready to edit the information in the displayed window Each of the categories within Income Uses functions in the exact same way and utilizes the same data entry windows and steps to enter data The only exception to this is Cash Gifts which includes an additional function to modify the amount over the exclusion l 2 3 Owner Amounts Inflation Rates To edit Owner data 1 2 Double click on Owner Edit the owner name in the Owner field Remember that all Income U ses and Sources can be tagged to a specific person or listed as Joint if two clients are represented A joint income use or source will continue to
127. oyee agrees to defer compensation in favor of payout at retirement D efined Benefit Pension Plan A qualified retirement plan managed by an employer that promises either a stated benefit at retirement or provides a benefit that is determined by a fixed formula D ependent Children parents a spouse or other person whom one has an obligation to support Derivatives An investment vehicle that may be bought or sold The value of a derivativeis based upon the value of its underlying security Direct Skip The process through which a grantor bypasses his or her children and gives property to grandchildren more remote descendants or other designated skip persons Distribution Rules Rules for a retirement plan pension plan or IRA that state when and at what age distributions are allowed and required Dividend A portion of a company s profit either cash or stock which is paid to shareholders Dividend Reinvestment Plan A program that automatically reinvests shareholder dividends in shares of stock or a mutual fund without incurrent a tax on income Dollar Cost Averaging The process of investing consistently over an extended period of timein order to negate the effects of volatility Durable Power of Attorney Documents under which an agent is granted the authority to act on an individual s behalf in accordance with certain instructions This document remains valid in all cases Equities An investment that represents owners
128. quently Asked Question window File Edit Setup Online Help Ree Mn San Home l Scenarios Solutions Action Personal Information Income Uses Employment Information Spending Tracking your spending uses and habits How much do you need How much do you want Spending Which areas do you want generalize or itemize in your spending Income Sources Real Property Cash Gifts Entries should be after tax and Non working Assets Insurance Premiums in pocket funds Business Assets Other Investments EY ETELE Retirement Plans Insurance Entering Monetary Values You can record and store financial data at three different levels depending upon your client s desires l Category level within Discovery Section and grand total 2 Class level within a category Class will total to the Category level 3 Item level within a class Items will total to the Class level Note Individual items can only be entered for each class when Itemize Assets is checked for that class At the item level you can add as many specific items that meet your client s needs for the particular Category and Class These items are completely customizable and can be modified or deleted as desired 55 RetireNow Users Manual Thethree different ways to enter monetary values 1 Category Summary M ode Entry Total now overrides all above items Annual value may beentered inthe WEGE SISTERE B3
129. r clients and show them results that neither of you could haveimagined before Visual outputs include graphs and supporting numbers The six major categories of report and graph types are Net Worth Cash Flow Wealth Transfer Allocation Ownership Miscellaneous AU BWNE Scenarios Maintenance To create edit or delete a client scenario click the Analysis tab and then click the appropriate maintenance button 1 Edit Current Scenario 2 Create New Scenario 3 Delete Current Scenario Create New Scenario Create new scenario allows you to createa scenario give ita name and save it for further reference or comparing it to other scenarios When creating a new scenario the base scenario data will be loaded to provide you with a starting point After the base data is loaded modify the fields as necessary 1 Click the Analysis tab 2 Click Create New Scenario DER Summary Cash Flow Wealth Transfer Allocation Ownership Misc Current JOEA Base Scenario Edit Current Scenario amp Create New Scenario Delete Current Scenario 92 RetireNow Users Manual 3 In the Name box enter a name for the new Scenario Information scenario Notice the Data Tree of Input Categories box that now appears below the amm N ame box These are the same categories that appear in the Discovery section of the program a Income Sources amp Real Property E Primary Residence amp
130. r that passes after the spouse s death Situation 5 Owner dies and a spousal rollover When the owner dies with a spousal beneficiary the spouse has the option of doing a spousal rollover with the spouse becoming the new owner In such a case the rules of Situation 1 apply after the spouse becomes the new owner Situation 6 The Exception to Situation 1 The exception to situation 1is when there is a spousal beneficiary who is more than 10 years younger than the owner In this case the life expectancy used while the owner is aliveis the joint life expectancy of the owner and spouse recalculated in each year Once the owner dies the exception no longer applies and the distribution is handled according to the situations described above As you can see each of these six situations is fairly straightforward except possibly for the Spousal beneficiary case Taken together however they still reoresent a fairly complicated set of calculations which have to be correctly performed to make sure you calculate the correct distribution for your clients For the latest information on Required Minimum Distributions see the N ewRM D Com Web Site at www newrmd com 127 RetireNow Users Manual The Economic Growth and Tax Relief Act Reconciliation Act of 2001 The Economic Growth and Tax Relief Act Reconciliation Act of 2001 included significant changes to the federal estate tax The exemption for estate tax purposes increases to 1 millio
131. rces 15 040 Real Property Cash Gifts Real Property Non working Assets 95 000 Business Assets Other Non Working A 32 100 Total now overrides all above items LOCIE eT E 10 000 PEIE Business Retirement Plans 2 110 investments Investments Insurance 9 360 Retirement 17 450 Ins Cash Value 203 030 Ins Death Benefit 20 500 Income Data can be entered at any of the three levels Category Class or Item Income Uses Category Level 1 Click the Total Calculate Box and Total ides all ab tenu de dede beh otal now overrides all above items unchecked the Total Calculate Total fMiCalculate SONI Details Box overrides figures entered in the classes above and represents all income uses for the client on an annual basis This represents a summary total for an entire category 2 Enter avaluein the Total field 3 Click the Details button if you wish to model income uses by year or model the effects of inflation The Details button will define attributes for the entire category 1 2 3 59 RetireNow Users Manual I ncome Uses Details Button The steps below outline how to enter values that represent the entire Income Uses Category in Summary M ode If you clicked the details button to model income uses 1 2a 2 1 Enter the owner of the spend ng n the Schedule Total Income Uses Owner field Schedule of Total Iricome Uses Ip P3 Fin Note If the owner is Inflation Rate
132. re expected to be paid off use the Increase transaction to adjust the value of the asst upward by the amount of the original mortgage Example A home is worth 150 000 and has a 100 000 mortgage against it paying off in 15 years The home is entered with a value of 50 000 and this value will be modified by the growth rate In the 16 year of the simulation an increase transaction is entered for 100 000 This method essentially models the growth of equity in the property over time instead of the growth of overall market value This method does not track market value as well as Method 2 but provides a more accurate amount of the actual cash realized from the sale of the property if this occurs before the mortgage s are paid off e Method 2 Enter the full current market value with no adjustments for outstanding mortgage s This method tracks market value more accurately but remember if a sell transaction occurs before the mortgage s are paid off enter the portion for the sale that represents equity In the year following this sell transaction use the decrease transaction to remove any surplus values 73 RetireNow Users Manual Non Working Assets Enter the value of all of the client s non working assets in this category N on working assets are assets such as household goods furniture automobiles stamp collection etc owned by the client Entry in the Non Working Assets category is identical to that in
133. remature Distribution A distribution from a qualified retirement plan that occurs before the age of 59 2 These types of distributions are typically subject to a 10 penalty however some exceptions such as death disability or a qualified domestic order are available 121 RetireNow Users Manual Price to Earnings Ratio A common ratio used in analyzing stock performance The priceto earnings ratio gives investors an idea of how much they are paying for the earnings power of a company The ratio can be found by taking the price of a stock and dividing it by its earnings per share Principal Theoriginal amount of an investment Probate The court administered process of distributing property in accordance with the terms of a will Probate does not usually apply to the distribution of joint property life insurance benefits retirement benefits or other payments made to a designated beneficiary Q QTIP Trust A special trust used in estate planning to provide benefits to a surviving spouse while obtaining a marital deduction and naming the final beneficiaries of the trust Qualified Retirement Plans Qualified retirement plans meet the standards set by the Employee Retirement Income Security Act ERISA of 1974 and qualify employers for favorable tax status Contributions to qualified plans are made before taxes and grow at a tax deductible rate R Required Beginning Distribution The age at which distributions from a retireme
134. rently selected window Solutions Home Print Standard of Living Feat The amount of goods and services required to live a given lifestyle STANDARD OF LIVING HOME CLOTHES 1 Do you plan to rent an apartme retire CAR J VACATION ement Lifestyle 2 Will you be moving to a differer 3 Does your standard of living rig 4 What s your ideal standard of living 5 Do you believe you have the right mix of core assets to fund your concept of retirement 6 What are your main concerns about retirement Solutions Topics When viewing the navigational sidebar you will find the main categories that will guide you through Solutions The main categories are Planning Your Retirement M anaging Investments Planning Your Legacy Estate Tools Product Solutions Glossary Slideshows 104 RetireNow Users Manual Click on the plus sign to expand the category and display the sub categories Click the sub category you wish to view 3 Usethe Continue and Previous buttons to navigate through additional pages in the sub category Np File Edi Setup Online Help odes Bee Discovery Scenarios Action 1 Planning Your Retirement Your Retirement Lifestyle Family Considerations 2 Chantable Inclinationz Contingency Planning Managing Investments Planning Your Legacy Estate Tools Product Solutions Federal Estate Taxes Glossary 1 Are you reconciled to giving away a portion of your estate
135. rice Charitable A nnuity A contract between a charitable organization and an individual in which the organization agrees to pay theindividual a stream of incomein return for the gift of an asset This stream of income is based upon the value of the gift Charitable Foundation A foundation created through the willing donation of property Charitable G ift Thewilling gift of property to a charitable organization Charitable Lead Trust A trust that pays incometo a charity for a period of years after which the remainder is paid to non charitable beneficiaries Charitable Remainder T rust A charitable trust that pays a beneficiary an annual income from the amount of the assets placed in the trust for life or a period of up to 20 years U pon the death of the donor a qualified charitable organization receives the remainder interest of the trust 115 RetireNow Users Manual Charitable T rust A trust that either pays income from the trust to a charitable organization for a certain amount of time or distributes the remaining assets of the trust to a charitable organization when the trust is terminated Community Property Property except for property received as a gift or inheritance acquired by a married couple that vests a 50 ownership interest for each spouse This concept only applies in Arizona California Idaho Louisiana Nevada New Mexico Texas Washington and Wisconsin Conservatorship A court monitored process
136. roup Buttons ere ee eren nennen nena 110 Printing Gre oro eee 111 Report ODUO S uucnaiaaaondcconnciel cnr oro o obe e RR RICO RR RD 112 FOIS esis ace sa ois eraewseacrv a cusaav eutsointcsp asda ncaaesvespiespeeamapecassaeh 112 Appendix A BHR RRR RRR RRR RRR RRR RRR RRR RRR RRR RRR RRR RRR eR eee ee eee eee ee 114 6 Coo NV Bee rreE ree PER PECEC CEE CEE ERT eeer CERT PEPeeECECECEPE CT TT PRT nrc errr T rere CeCe ee Ceerr Tere 114 Appendix B BENHNHNEHNHNHNHNHHEHHHHEHHEHHHEHHEHHEHHHEHHHEHHHHEHHEHHHEHHHHHHHEHHHEHHEHHEHEHEHHHHHEHHEHHHEEHNH 126 Required Minimum Distributions Calculations Under The New The Economic Growth and Tax Relief Act 128 Reconciliation Act of 2001 eere rennen nnn nnn 128 Appendix D BRE RRR RR RR RR RRR RR RR RRR RR RR RRR RR RRR RRR RRR Ree eee eee ee 2 129 ScenarioNow RetireNow Software Credits 129 License Agreement 555222222222222n5curuuuuuuuuuuuuuuuum 130 RetireNow Users Manual RetireNow Users Manual Quick Reference Guide Welcome and Contact I nformation Welcome to RetireN ow the most flexible and powerful financial planning tool available Follow the steps in this Quick Reference Guide to get started quickly and easily For questions on content calculations and program features please call ScenarioN ow Inc Telephone 815 227 4144 or 866 272 3627
137. rt them into your own Excel Lotus or a Click Text Fileor Quattro Pro spreadsheets Spreadsheet File b ClicktheCreateFile Create File Cancel button Select the folder to save the report in Enter the name of the reports fileto be saved Click Save to savethefile OR click Cancel to close without saving f Click the Cancel button to dose the Exporting Reports window 4 ThePrinter Setup button Print Setup 2 xl executes the Windows printer Printer setup dialogue allowing the le z re EEG 3 EE user to change parameters for 3 NEED is Status Default printer Paper aut Offline User intervention documents waitir a specific printer From the Type HP Lasenlet 4 Plus Windows dialogue box select where LPTH the printer name you want Gener use and orientation you desire then click OK oan Onentation Portrait Paper Size Letter Bi 2Z 11in Source Auto Select C Landscape Cancel 111 RetireNow Users Manual Report Options The Report Options box allows you to change the default settings for your printed reports 1 Enter the Heading for the reports if desired 2 Choose printing 1 options by clicking in the appropriate box 3 Adjust the margins by entering the Top Bottom Left and Right page margins in Cover Page V Print Date Ene Table of Contents li Print Headi 4 Formatthe Report 2 MM Title Text Headers Disclaimer Print Time
138. s coming soon and Slideshows that the advisor may use with a client or in a seminar These slideshows are ideal for explaining certain planning techniques and products l Click the Presentations category 2 Click Slideshows Note These slideshows can also be accessed through the Solutions section 3 Click on the desired slideshow A ccumulation Asset Allocation Charitable Trust 1 Distribution Family Limited Partnerships Irrevocable Trusts Living Trust 4 Navigate through the presentations by clicking the N ext and Back buttons at the bottom of the presentation screen 0oocowv tQ 3 Accumulation Asset Allocation Charitable Trust Distribution Family Limited Partnership Irrevocable Trust Living Trust For the Client What will we do today Case Studies For the Advisor Whatis ScenanioNow Advisor Web Resources Presentatons ScenanoNow Links Glossary Important Please Read Home Print 51 RetireNow Users Manual ScenarioNow Links ScenarioN ow Links provides you access to information about other ScenarioN ow products and services and links to our partners web sites 1 Products a Click on ScenarioN ow links b Click on Products to view a list of ScenarioN ow products c Click on the desired product 2 Web Sites a Connect to the Internet b Click on ScenarioN ow links c Click on Web Sites to view alist of our partners web sites d Click on the desired
139. s in the form of premiums in return for a payout after a specific period of time or circumstances Types of insurance are e Tem e Universal Life e WholeLife e Variable Life e Variable Universal Life Intangible Asset The legal claim to a future benefit such as a claim to future cash Interest The cost of borrowing money which is expressed as a percentage of the amount borrowed Intestacy Laws State laws that explain how property should be distributed at death if no legal arrangements have been made IRA Education An IRA that allows an individual to save for higher education without certain tax obligations Contri butions are not tax deductible but earnings can grow at a tax deferred rate if distributions are used for higher education expenses IRA Roth Contributions for a Roth IRA are made from post tax funds However funds in this IRA grow without the burden of taxes and most withdrawals are tax free if certain conditions are met Irrevocable Unable to be changed All terms of an irrevocable entity must remain the same as when that entity was created Irrevocable entities often have tax advantages that offset the disadvantage of their inflexibility Irrevocable Life Insurance Trust An Irrevocable Life Insurance Trust ILIT is an irrevocable trust which holds a life insurance policy and property In return for a moreliquid estate as well as certain tax benefits the trustor completely gives up all rights to the property
140. screen OR Exclusion Rate a Click the computer i o v icon to calculate 2002 5 M future value 2003 5c M So 2004 59 M vM 90 b Enterthefuture 2005 co ME s value amount ZEE vM 0 c Enter a growth rate 20077 62 M 0 2008 63 NM So d Enter the start age 2009 64 o 0 4 00 e Press the tab key on Averages 0 0 4 00 your keyboard to Clear Schedule Save Cancel Help calculate the Present Value f Click the Use button to use the present valueOR SESLE click Cancel to exit without using the value Future Value 100 000 Growth Rate A Start Age 60 Present Value 85 480 63 RetireNow Users Manual 10 11 12 g The present value now appears in the Amount field EEF Vitel see 5 480 Fill Click the Fill button to select the value in the Inflation Rate Fi Amount field and placeit in the N ew SCAS AILA Som A mounts column below for the entire 6 Fill All Years period of analysis 6a AEAEE Enter the appropriate inflation rate in the Start NA 60 Stop Age Inflation Rate field and dick the Fill button to select the value in the Inflation Rate field and 6b 6c place it in the Inflation Rate column below for the entire period of analysis Enter the appropriate amount that is over the client s annual gifting exclusion amounts in the Amount Over Exclusion field and click the Fill button to place it for the entire period of analysis Note The
141. sites on the Internet intranet corporate network or your local machine RetireN ow ships with a standard content pack of slide shows seminars forms financial planning terms and partner information On a periodic basis you will receive e mail upgrades for the various content and information as well as new and exciting information you can share with your clients Co branding and Customization Homeis shipped with standardized content but all of thetopics presentations glossary terms and web links visuals can be completely customized by you or your firm Your logos graphics case studies presentations and web sites may be included here To find out how you can customize RetireN ow to meet your needs please contact ScenarioN ow SCENARICMow 4920 East State Street Suite 1C Rockford IL 61108 866 272 3627 or 815 227 4144 sales scenarionow com 46 RetireNow Users Manual Home Section Navigation 1 Useyour mouse to click the Home button which will bring you to the Home page Note The program will start by loading the HTML home page from the location that you have Specified in the Setup HTML Setup section 2 Navigate through Home by using the menu in the navigational sidebar and clicking the desired topic Some categories display sub categories that may also be accessed with a click Once the desired category is chosen it is displayed in the screen on the right 3 TheHomelink will return you to the main or home page 4 T
142. sk a value of greater than 1 can also be entered It is important to note that a choice of None for the S amp P Growth Forecast turns off the above calculations and straight line calculations would then be used In other words a selection of None and a Growth Rate of 3 for an asset would apply that 396 growth rate compounded for every year of the simulation for that asset 36 RetireNow Users Manual S amp P 500 D ata shaded area tracks where the 10 best years are placed Year 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 26 89 8 73 22 8 16 48 12 45 10 06 23 98 11 06 8 5 4 01 14 31 18 98 14 66 26 47 37 2 23 84 7 18 6 56 18 44 32 42 4 91 21 41 22 51 6 27 32 16 18 47 5 23 16 81 31 49 3 17 30 55 7 67 9 99 1 31 37 43 23 07 33 36 28 58 21 04 9 1 Historical Reverse Return Return 9 1 21 04 28 58 33 36 23 07 37 43 1 31 9 99 7 67 30 55 3 17 31 49 16 81 5 23 18 47 32 16 6 27 22 51 21 41 4 91 32 42 18 44 6 56 18 23 84 37 2 26 47 14 66 18 98 14 31 4 01 8 5 11 06 23 98 10 06 12 45 16 48 22 8 8 73 26 89 Ist Ten 30 55 7 67 9 99 1 31 3 43 23 07 33 36 28 58 21 04 9 1 14 31 18 98 14 66 26 47 3 2 23 84 7 18 6
143. sor will provide a best esti mate for the client s expected Social Security benefit Reference the FAQ on Social Security by clicking on the Social security class name For additional information contact the Social Security A dministration and visit the Social Security website at www ssa gov Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Pension Enter the annual amount paid to the client from a pension in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Work Enter the annual amount earned by the client from employment in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Rents Enter the annual rental income received by the client from associated properties in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Tax Credits Enter the annual amount of all of the client s applicabletax credits in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income
144. surance Class Life Insurance Enter the cash value of all life insurance polices in this section N ote that two types of cash value policies Death Benefit and Death Benefit Cash Value and Term policies can be modeled Please refer to Insurance Category Details Button section for entering detail data for a Class and Insurance Item Level sections for entering detail data for a Class Item 88 RetireNow Users Manual Annuities Enter the cash value of all annuities in this section For other basic inputs that are similar to the Life Insurance screens please refer to Insurance Category Details Button section for entering detail data for a Class and Insurance Item Level section for entering detail data for a Class Item F Schedule Life Insurance Annuities Schedule of Life Insurance Annuities Vier le meeiidam it ise 5 00 Fill Account Value in Year 2000 1 0 Death Benefit 0 Fill Owner i wner Annual Contribution o Fill Elies Spouse i eneficiary MEL v NEN NEN AUN GS n R Fixed Fi Annuity Type Ixed o Fill All Years Variable Beta 1 00 e Fill Certain Years S amp P Growth Forecast Historical AV Annual Death Acct Value Transaction Growth Contrib Benefit Transaction Amount Rate po so None 5 00 so None J 5 00 ps0 None 5 00 so None J _5 00 so Non 5 00 so None J _5 00 so None J 007 ps0 Nene T 500 Inp
145. t transaction in the asset screens The Prior Adjusted Taxable Gifts and Unified Credit Used by Prior Gifts will be entered herefor the client and or spouse and are referenced in future calculations l Select and click Gift Account Enter the name you wish to call the account in the Gift A ccount N ame field Enter the growth rate Pick theinvestment class you wish to assign to the gift account from the list provided Cash and Money Markets is the default value To select another investment dass dick on the down arrow then click on the class Gift Account Setup Gift Account Setup Gift Account Growth Rate Cash and Money Markets Taxable Class Taxab Gift Account Name Investment Class Ul A w N Prior Adjusted Taxable Gifts ES IES 6 you wish to select Use the scroll bar on the right to view the entire list Gifts Unified Credit Used by Prior a p Note The Investment Class is for description only and has no bearing on the growth rate of the Cancel Help account Pick the tax status of the account by selecting Taxable or Tax Exempt for the Taxable Class field Taxable is the default value To select Tax Exempt class use your mouse to place the cursor or arrow on the field with Taxable and click then use your mouse to place the cursor or arrow on your selection and click Note Selecting Taxable will impose the Heirs income tax rate on the growth of assets inside the
146. t Plans and Annuities Variable only screens Advisor Setup I nformation Advisor Setup provides a place to store your contact information Simply enter the relevant information in the appropriate fields and it will be printed on reports created by the reporting engine HTML Setup HTML Setup points to the locations where you or your firm have stored the HTML pages that provide for customized content in each of the Home Solutions and A ction Forms sections RetireN ow ships with default pages that have been supplied by ScenarioN ow To select a page to view in any section of RetireN ow l Selectand click HTML Setup Information from the menu bar 2 Click Browseto select the directory path and file name of the desired page 3 Click the Save button to store this information 11 RetireNow Users Manual Location of Data Files The location of data files points to what directory client files are stored in The default for this is C Program Files ScenarioN ow RetireN ow Data f you prefer to save your client files inside another directory click the Browse button and select the directory on your system that you wish to use Select Liquidation Details When client assets must be liquidated to meet cash flow needs RetireN ow provides a facility to select one of three liquidation techniques T axability lists all categories of assets that are liquid and organized by taxable class You can determine the liquidation order by Taxabili
147. tate on behalf of a beneficiary U Unified Credit A credit from the federal government that is allowed to anyone as an offset against federal estate tax and federal gift tax Unlimited M arital D eduction A tax deduction which shelters most property transferred from one spouse to another from federal gift and estate tax V Variable Annuity Variable Annuities have characteristics of traditional fixed annuities but offer a different method of realizing potential returns Monies are invested in the stock market in accounts referred to as sub accounts These sub accounts are structured as either mutual funds or as segregated investment portfolios that are managed by professional investment managers V olatility A measure of the variation in the price of an investment For example an investment with a price that changes quickly is said to be volatile Historically investing over a large period of time has the effect of lessening volatility W Will A written declaration by an individual of his or her intentions for the disposition of assets after death In this document an individual chooses beneficiaries names an executor and if necessary selects a guardian 124 RetireNow Users Manual X Y Yield A yield is defined as a rate expressed as a percentage at which an investment pays interest or a dividend The yield of an investment can be found by dividing the earnings paid to the investor by the price of the
148. ter the death benefit for all policies in the Death Benefit field Click the Fill Button to place the death benefit in the Death Benefit column below 10 Enter the annual premium paid for all policies in the Annual Premium field 11 Click the Fill button to place the annual premium amount in the Annual Premium column below 85 RetireNow Users Manual 12 Enter thetype of transaction for all policies in the Trx field a Noneindicates that no transaction occurs Cash Value Growth Rate 5 00 Fill b TheAddition option allows for Death Benefit ss SO JST funds to be added to the cash value Eee so of the policies over a period of l i gaa Art om c TheWithdrawal option allows 12 balances from cash values to be g cdition Withdrawal withdrawn over a period of time Gift d TheGift option allows for the dient to gift portions of the cash value of the policies in a specific year or over a range of years 13 If applicable enter the amount of the transaction in the Amt Field 14 Click the Fill button to place the transaction amount in the Transaction Amount column below 15 Click theFill All Years button if you wish to havethe values in the Cash Value Growth Rate field the Death Benefit field the Annual Premium field and thetransaction amount field selected for the entire period of analysis OR TIMERS nce 5 00 BT a Click the Fill Certain Years button if e go NE yOU wish to havethese values for a ee
149. the Real Property Category File Edit Setup Online Help SAAN e d Home Scenarios Solutions Action P Inf ti duele cnc Non Working Assets Employment Information Base Scenario Itemize Income Uses Income Uses Assets 10 000 Income Sources Personal Property a Details Income Sources 0 Real Property Automobiles vo EBENE Real Property Other MED oiis S Business Assets Total now overrides all above items Non Working Oc EEOAE Details 0 Business Retirement Plans 2 110 Values represent balances in year 2001 investments Investments Insurance 9 360 Retirement 17 450 Ins Cash Value 203 030 Ins Death Benefit 20 500 Personal Property Enter the value of all of the client s personal property household goods furniture stamp collections etc in this section Please refer to Real Property Category Details Button section for entering detail data for a Class and Real Property Item Level section for entering detail data for a Class Item Automobiles Enter the value of all automobiles in this section Note Most automobiles are subject to depreciation and entering a negative growth rate here can be effective in modeling how these assets can dramatically decline in value over a short period of time Please refer to Real Property Category Detail Buttons section for entering detail data for a Class and Real Property Item Level section for entering detail
150. thelaws of the State of Florida and any action hereunder shall be brought only in Florida If any provision is found void invalid or unenforceable it will not affect the validity of the balance of this License and Limited Warranty which shall remain valid and enforceable according to its terms If any remedy hereunder is determined to have failed of its essential purpose all limitations of liability and exclusion of damages set forth herein shall remain in full force and effect This License and Limited Warranty may only be modified in writing signed by you and a specifically authorized representative of Brentmark All rights not specifically granted in this statement are reserved by Brentmark 130 RetireNow Users Manual 131
151. this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item Long Term Carefields are modified to reflect the disability benefit and COLA adjustment rather than the Amount Growth Rate fields Note The COLA adjustment in the Detail and Itemized sections functions the same way as the growth rate in other sections Other Enter the annual amount of all other sources of income in this section Please refer to Income Uses Details Button section for entering detail data for a Class and Income Uses Item Level section for entering detail data for a Class Item 67 RetireNow Users Manual Real Property The Real Property category lists real estate personally owned by the client Business owned property is listed in another category File Edit Setup Online Help KAUA SJENA UR Home Scenarios Solutions Personal Information R eal Employment Information Income Uses E ILS sek Income Sources Primary Residence 7B Secondary Residence a Details ie Non working Assets Land EE ctais M Business Assets Rental Property otis M Other PST Investments Total now overrides all above items Retirement Plans Total Calculate SOR Details Insurance Values represent balances in year 2001 Base Scenario Income Uses 10 000 Income Sources 0 Real Property 0
152. tireNow Users Manual Discovery Section The Discovery section is designed for interactive data collection with the client through an interview process Itishere where you record information about the client i e name and address the assets owned etc The various sources and uses of client income are identified and entered Current Real Property Investments Insurance coverages and other financial data are captured during the interview which will be used to build the alternative scenarios and financial plan An important thing to remember about the Discovery section is that not only are we actually entering dient data here we re also discovering the fadings and attituds of the client toward the most important things in their lives As you walk through the various input categories be sure to ask if any of the input classes within them apply Not every client will have an entry in every one of these classes but they are hereto help elicit conversation and thoughts from the client Wethink you will find that asking about each of these input classes will help a client remember other income sources uses and various assets that may not be in theforefront of their immediate memories Values entered for a client may be actual figures such as the after tax amount for a salary at work or projected such as future Social Security benefits according to the client s needs and wishes Note All monetary amounts entered for Income Uses and Inc
153. tools provided in Solutions your client can see the steps in this process and specific product information can be discussed to enhance the buying process TheSolutions section will provide a forum to introduce your specific product recommendations for your dient and integrate these recommendations into the planning process Note In the sections to follow the Solutions section as shipped with the software will be discussed Your company may develop a different content and navigational structure Customization Unique to YOUR Business The Solutions section is shipped with a standard set of topics visuals questions glossary and other content All of the topics questions glossary terms and visuals can be replaced by materials selected by you or your firm You have the ability to include your firm s logos graphics marketing material product information and brochures prospectuses presentati ons web links resources and so on Note The Solutions section can be completely customized in the manner that best suits your needs The only limit is your own imagination ScenarioN ow can customize the Solutions to meet your needs To find out how please contact ScenarioN ow at SCENARICMow 4920 East State Street Suite 1C Rockford IL 61108 866 272 3627 or 815 227 4144 sal es ascenarionow com 102 RetireNow Users Manual Solutions Home Page l Click the Solutions button on thetop navigation bar to view the Solutions home p
154. ty category and by individual asset within each Taxability category Investment class lists assets by Investment Class that areliquid You can determine the liquidation order by Investment Class and by individual asset within each Investment Class Per Asset liquid lists all Investment and Retirement Plan assets individually that are liquid You can determine the liquidation order by individual asset Note that the Sweep Account is a unique asset that appears in all three liquidation techniques You may change a liquidation order by highlighting the appropriate selection and using the up and down arrows to the right to change its place in the schedule The Itemize Liquidity button allows the liquidation order of assets inside a category to be set Global Rates Global Rates are default percentage rates displayed and used throughout the RetireN ow asset windows and calculations Rates that may be modified are G rowth Rate selects a global growth rate for all assets and income sources Inflation Rate selects a global inflation ratefor all assets and income sources Income Tax Rate selects a global income tax rate for Pre Retirement Applies this global rate in the years before the client s Retirement A ge as set in the Personal Information screen Post Retirement Applies this global rate in the years after the client s Retirement A ge as set in the Personal Information screen Heirs Selects a global income tax rate for the client s h
155. uildings iseaccot so n use a as Lavs 2b e cueU su E RaasinN P Ua pauc SEE FURuCURUe da USQUE ad CRwE UR aaa 75 ONG ea cxii n r ERE E TEP ERR EN OCCURRERE ERI C ER OC DC EE RACE CERCA EAR DO ECC TC TR ER 76 Bn u cupp gpemBt t 76 Investments Category Level 11e eere aaah aidaa sakiai 77 Investments Detail Button representing Summary Mode inputs 77 I nvestments Class Level iicsnixukid Ri DX ARCET A ROC cfr RR RR CR ED RE RC 80 Investments Item Level xi Vua on VER PR ER AR RIO DER ERR E ER E CR TRE CERRAR ERR 81 TaXabDle sissivetevon na odo nde ino OL Kr iri RC RE RC DUE RO RR ROCA ODE EG EO RO E TR RE 81 HEP Qi i re ue 81 Pme M 81 Tax Defer O i isssicicni a Ea EVE EV EaR ER anak aa RS Er VkXC VERRE FRE ERR 82 Other iion VEM RU E EE E SEES a MES FEVER FXEESKR DU EUREN d rRAM Ex Lrva PR QI IDE aU Ra 82 RetireNow Users Manual Retirement PISIS uidi seo eetuse xad erus as sudtai vl Urasaes esos EE vcas iun V ENS 82 ONY t 83 IRA c M 83 PROG lj eoe E H M 83 STOCK Quel ONS ariii in iuba wEEREESNVE SN RID a 83 ONET NOTET IET TETTE ESTER 84 fati LI TIU III EE 84 Insurance Category LeVel iiss xv eux vaukuE uva Fa EA iaaa iaiia iaai 84 Insurance Details Button 2c ceaneuuunuuanuuuau uua eR RRRRRRRRRRRRRRRRRRRRRRRRRRRRRAR 85 Insurance Class Leyel
156. ules established on 1 11 2001 See Appendix A for more information File Edit Setup Online Help AUAN ss 1 is a3 ring j Home Scenarios Solutions Action Personal Information Retirement Plans Employment Information Base Scenario Itemize Income Uses Assets 10 000 ss PEST Income Sources 0 NENNEN Details 7 Real Property Non working Assets Roth IRA PEDE 0 Income Uses Income Sources 401 k Real Property IRA Business Assets Stock Options Details Non Working Details Other Investments Total now overrides all above items Business UE ETEO EEEE Insurance Investments Values represent balances in year 2001 Retirement Ins Cash Value 203 030 Ins Death Benefit 20 500 In all Retirement Plans screens Cost Basis and Reinvest Dividends are grayed out and are not accessible For taxation purposes upon withdrawal cost basis is not relevant and all dividends are reinvested in a retirement account until distributions actually begin 82 RetireNow Users Manual To enter Beneficiary Distribution data pe l Click the Ben Designation button in the Schedule Beneficiary Heirs of Retirement Plans screen 2 Upon viewing the Beneficiary Designation screen dini dick the Beneficiary field and select the Beneficiary Death Year Parau beneficiary Save Cancel Help Heirs Beneficiary Birthdate Charity 0 3 Enter the Beneficiary s birth date in t
157. urance policies your client has purchased or will purchase RetireN ow is shipped with sample policies that cannot be updated or deleted You can set up multiple insurance policies each having a defined administration expense and rates To add a new policy List of Policies Sample Current Rates Add Policy 1 Click the Add Policy button x 2 Enter thename you wish to assign to the policy in the Name of Policy field 3 Enter an administration expense in the Vanna o Administration Expense field Administration Expense NIETO 4 Add or modify the rates by entering data in the appropriate rate boxes 5 Click theOK button to save your changes 0 00 0 000 EE i f 0 000 To delete a policy Select and dick on the policy you wish to delete Click the Delete Policy button M 2 3 Click Yesto deleethe policy OR dick No to keep the policy N p Client Setup Insurance Client Setup allows you to select an Cat of insurance Par 1 000 af Coverage insurance policy your client has purchased or O moker will purchase Oneinsurance policy per dient 1 ann can be sel ected Sara Current Policy Sample Current Rates Select a New Policy To select an insurance policy for a client 3 EDEN John 1 Select and dick the dient you wish to pn set up an insurance policy 0 62 2 Click Yes or No for Smoker 0 63 3 Click the policy you wish to select for s your client 0 68
158. uring installation If you cannot find the icon or it was not installed on your Windows desktop during installation you can start RetireN ow from the Start M enu as follows l Click the Windows Start button 2 Useyour mouseto place the cursor or arrow on Programs which will display a menu of program folders installed on your computer 3 Look for the ScenarioN ow folder If you do not see the ScenarioN ow folder on the initial list displayed click on the double down arrows at the bottom of the Program list Additional program folders will be listed Find the ScenarioN ow folder and use your mouse to place the cursor or arrow on ScenarioN ow and a list of ScenarioN ow folders will be displayed 4 Look for the RetireN ow folder and use your mouse to place the cursor or arrow on RetireN ow and double click to launch RetireN ow 23 RetireNow Users Manual Menu Items File Drop Down Menu The File Menu lists tasks you can perform with your client s files Cre Bii Setup Online Help and provides the ability to set up report options and exit Mew RetireN ow You can access the list by clicking File on the menu Open F3 bar Save Save As Fz File New Report Options File New creates a new client file with blank fields except where Exil default information has already been supplied in Setup l SelectNew on theFile drop down list Note RetireNow files will be saved with the extension RET The RET format will allow suc
159. ut ultimate repeal remains uncertain dueto the inclusion of sunset provisions This may be a reasonable assumption if one believes that the sunset provisions will not be implemented and repeal will ultimately prevail 2009 Rates in 2009 4 current law modified to continue estate tax with no repeal Assumes repeal never occurs and last scheduled rates are used in future years This may bea reasonable assumption if one believes that repeal is unlikely to occur Thisis the program default unless changed 128 RetireNow Users Manual BEN Appendix D ScenarioNow RetireNow Software Credits The S amp CENARICMeow Team Original Concept and Design Patrick Sullivan David L Lazenby Ph D Project M anagers Greg Ike Eicher Patrick Sullivan M anual Content Authors Ike Eicher Derek Bremer M anual amp Help Editor Cindy Larsen Brentmark The e rf r4 amp E Tesis RetireN ow Project M anager Patrick Matthews Software Coding Keith Reynolds Technical Writer Kris Fury Special Thanks ScenarioN ow and Brentmark Software wish to thank thefollowing for their contributions and feedback to version 2001 01 Greg Downey John Foster Carol Cantrell Tim Erickson Eric Lans Peter Olsen Pat Brazzle Richard Feldmann Jay Buckman 129 RetireNow Users Manual License Agreement License Statement This software is protected by both United States copyright law and international treaty provisions Y ou must treat this
160. uts that differ for the Annuities screen are as follows Annuity Types l Fixed Fixed Annuities offer a minimum guaranteed growth rate Beta and S amp P Growth Forecast are grayed out if Fixed is chosen 2 Variable VariableAnnuities havethe ability to incorporate Beta factor and S amp P Investment scenarios to randomize the performance of the underlying investments within the annuity For details on how these features work refer to Chapter 4 Setup S amp P 500 Growth Forecasts Other notes in comparison to the Life Insurance screens l Account Value Growth Rate This replaces Cash Value Growth Rate 2 Death Benefit This feature is available in some annuities like a Life Insurance policy 3 Annual Contribution This replaces Premium and represents the yearly amount contributed to the annuity 4 Transactions These affect the account value of the annuity instead of the cash value 5 Adjusted Value output column Adjusted growth rates will be displayed here for Variable Annuities that use an S amp P Growth Forecast model 89 RetireNow Users Manual Annuities have an additional Policy Expense button when clicking the Policy Expense Detail or Itemize button To enter policy expenses that represent the investment management fees etc associated with the underlying investments of an Annuity click the Policy Expense Button l Enterthe expense percentage in the N ew Exp Editing Policy Expense Rates _
161. visor and dient to take action The Action section is composed of three different functions 1 Action List 2 Reports 3 Forms Action Lists The action list button provides a series of checklists in key sections that the advisor may use to be certain that he or she has completed a comprehensive review of the client s retirement strategy Each task within the action list has an associated completion date that can be filled in and a box to check when completed Y ou may enter notes and comments at the bottom of the list To select the action lists 1 2 3 File Edit Selup Online Help 1 Click the Action Retire SCENARI List button Home Discovery Scenarios Solutions 2 Click on the ENT CN Forms m Selon Ferre ros MN RN TTC display all EM eo sate compete Action lists 1 Discovery client data inputs are RT z tirement Accounts 674 200 E 3 To select alist gt Hataults farthe swanp ili and ralicementaccountaamnee sneer E enter the 3 Global default rates have been entered ul appropriate H ot Key or click on the desired list text 4 Enterthe appropriate due date for the action in the Due Date field 5 Toindicate that an action has been completed click on the Completed box 6 Click theNotes field to begin entering notes 108 RetireNow Users Manual Reports The reports function allows the advisor to select and print reports that encompass the client s financial history and projections
162. web site Glossary Theglossary is a navigable tool that provides definitions of both technical and commonly used terms The Glossary may also be accessed through the Solutions section l Click on the Glossary category 2 Atthe beginning of the glossary is a linked alphabet bar Click on the first letter of the desired term The user will find that many of these terms also include an image to illustrate their meaning 3 Movethe mouse over the button labeled image to view the illustration Home Print Bn Glossary 2 As BS Ue ADs RES Sie as TER SES Sdn SR Lee IS SMS DAS Ro EIS BIS 2S TG EO D MM SED ONN S 3 401 k 4 qualified retirement plan into which an employer and an employee contribute pre tax dollars to an investment pool Contributions to a 401 k are tax deferred 403 b 4 403 b similar to a 401 k is a tax deferred retirement plan that lets employees of a tax exempt education or research organization to contribute pretax dollars to an investment pool Five By Five Power See Crummy Power 10 000 Annual Exclusion Rule Gifts of up to 10 000 per year may be made to any person without paying federal gift or estate taxes Gifts of more than 10 000 may be subject to gift taxes and will reduce the amount of the donor s unified credit 50 Percent Rule In any one year a tax deduction is limited to 5096 of the donor s adjusted gross income Some contributions may be limited to a 20 or 3096 deduction A 52 Re
163. which is completely customizable by you or your firm RetireN ow ships with a standard home section with Slideshows explaining the RetireN ow process sample Case Studies and educational slideshows and advisor links Y our company may develop a different content and navigational structure to better suit your needs To find out how please contact ScenarioN ow at 866 272 3627 or sales scenarionow com Discovery The Discovery section is designed for interactive data collection with the client through an interview process Asset and income information in the Discovery section may be entered in either Summary or Itemized mode Category Summary M ode Entry A total value may be entered in the Total Calculate Box for a Category by removing the checkmark that totals the client s financial information for that category Note that this total will override the totals of all other input fields in this category Class Summary M ode Entry A total amount may be entered for each input dass within a category that will override any itemized inputs for that classi The Itemize Assets box for the item should not be checked and the Details button sets other input attributes temized Entry Individual assets may be entered at the itemize level within a class The temize box for the item should be checked The Itemize button allows up to 20 items to be entered uniqueto that input class For example up to 20 different items could be
164. without penalty 2 Select the early distribution e Don t allow for early distributions rule you wish to apply 3 Press Save to save the information OR click Cancel to exit without saving your selection Trust Accounts A B meg ee MEI S Iur Handling of Assets at Death If no s assets are owned by Trust the program default is for all assets that Dadence in fear JWH do not otherwise have a designated beneficiary to go to the surviving Se arent Pr spouse at death Assets Owned By Trust Assigning ownership of an asset to Trust creates A B Trusts and puts the asset in the appropriate trust for the husband wife See Global Rates in Setup to input a Trust Transfer Growth rate for this account Setup Insurance Rates File Edit Setup Online Help Setup C Nen Fie Startup Mode t ie E Insurance policies are set up using the M aintenance function and selected for a dient using the Client Setup function Account Setup g Insurance Rates Setup Maintenance S amp P 500 Growth Forecasts Client Setup Advisor Setup Information HTML Setup Location of Data Files You use the age and rate factor to determine the cost of insurance as follows Cost of Insurance Rate factor x number of units 1000 Liguidation Details Global Rates Estate Tas Calculation 34 RetireNow Users Manual Maintenance Insurance Maintenance allows you to add modify or delete ins
165. y for editing data and information is identical to the Create N ew Scenario section above Delete Current Scenario Delete Current Scenario allows you to delete the current scenario l Selectthe scenario you wish to delete See Selecting a Scenario above 2 Click theDelete Current Scenario button Note Clicking the Delete Current Scenario button results in the immediate deletion of the scenario listed in the Current Scenario box Be sure you have first selected the right scenario to delete The program will then load the Base Scenario into memory and open the Data Tree Window for further editing tasks Viewing Graphs and Reports When launching the Scenarios section or editing scenario information in the data tree window you have the capability to select graphs and reports by clicking the desired category button in thetop left selection box A graph or report relating to the button selection can be displayed by dicking the Graph or Report tabs located at thetop of the graph display window Each tab will have a set of graphs and reports that represents the data previously entered for a scenario The graphs and reports depict information for the current scenario only To display the graphs and reports for a different scenario you must select a different scenario by clicking on the name in the Current Scenario input field or from the Edit Scenarios Select Scenario choice from the main toolbar at the top of the screen Reports provide the u
166. your needs To find out how please contact ScenarioN ow at 866 272 3627 or sales scenarionow com 16 RetireNow Users Manual Chapter 1 Welcome to RetireNow Welcome to RetireN ow the first wave of a software and sales training revolution for financial advisors and the financial services industry ScenarioN ow Inc is the first company to combine high tech and high touch to enhance the relationship between the client and advisor Previously in thefinancial services industry companies focused on one or the other rather than both Thefoundation of RetireN ow relies on the combination of computer technology scenario planning and collaborative selling to help people make complex financial decisions faster ScenarioN ow provides the tools to enable an advisor to combine technology selling complexity client relationship building and decision making into one visually interactive and entertaining experience RetireN ow the first produc of the ScenarioN ow VIP Series is designed to be used in front of the client to visually represent financial retirement scenarios This allows for an unequaled experience in financial planning and provides clients with the means to make decisions quickly and effectively RetireN ow provides the advisor with the capability to collect client financial information data and investments and develop multiple financial scenarios or plans that meet the client s financial objectives RetireN ow graphically dep

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