Retirement Planner

The Retirement Plan Information section consists of the below tabs.

Retirement Plan Information

• Name - This field is prefilled from existing user/account data and is not editable by the user.

  • This is the users name.

• Age - This field is prefilled from existing user/account data and is not editable by the user.

  • This is the users age.

• Retirement Status - This field is defaulted to 'Not Retired' and may be changed by the user at any time.

  • This field will be used to determine if a user is already retired or not.

• Desired Retirement Age - This field is not prefilled, must be provided by the user and may be changed by the user at any time.

  • This is the age that the user would like to retire.

• Retirement Plan End Year - This field is not prefilled, must be provided by the user and may be changed by the user at any time.

  • The is the year they want the plan to end on.

• Expected Average Annual Inflation Rate - This field is prefilled/defaulted to 3% and may be changed by the user at any time.

  • This is the users expected average annual inflation rate before and during retirement.

• Total Annual Compensation - This field is prefilled from existing user/account data (Lower Band of Net Income) and may be changed by the user at any time.

  • This is the users current total annual compensation. This figure should include all things such as salary, bonus, commissions, etc.

• Expected Average Annual Compensation Growth Rate - This field is prefilled/defaulted to 3% and may be changed by the user at any time.

  • This is the average annual rate the user expects their total compensation to grow at.

• Expected Effective Tax Rate in Retirement - This field is prefilled/defaulted to 20% and may be changed by the user at any time.

  • This is the effective tax rate the user expects to pay on taxable distributions during retirement.

  

Monthly Income

• Income Label - Enter a Label for your Monthly Income.

• Amount - Enter the Monthly Income Amount.

• Taxable - Select Yes or No.

• Set a Start Date? - Select Yes or No. If you select yes, you will be prompted to enter a Start Date.

• Set an End Date? - Select Yes or No. If you select yes, you will be prompted to enter an End Date.

  

The Retirement Planner supports the ability to add one additional user. To do so, please take the steps outlined below.

1. Click + Add Individual.

   

2. Enter the Retirement Plan Information for the new user.

   

3. Enter the Monthly Income for the new user and press Save.

   

4. A confirmation screen will appear. Press Ok.

   

5. You will be navigated back to the original information screen. Press Continue.

   

6. Enter the additional information listed below and press Continue. You may add an external account by click the green + Add External Account button.

   

7. The users Expenses will populate on the screen. Press the + Add Monthly Expense button to add an additional expense. Press Continue, or press the pencil icon to edit the expense Amount, Start Date, or End Date.

   

   

8. A confirmation screen will appear. Press View My Outlook to view this users retirement plan information.

   

9. You will now be navigated back to the Retirement Planner home page where you can view and edit the users retirement plan information.

   

The Monthly Expenses section allows you to enter any monthly expenses you may have. To do so, please take the steps outlined below.

1. Click + Add Expenses.

2. Enter the Monthly Expense information.

   

3. If you select Yes to Set a Start Date and Yes to Set an End Date, you will be prompted to enter the start and end dates. Press Save to save this information.

   

4. Click Ok.

   

5. You will now be navigated back to the Retirement Planner home page where you can view and edit your Monthly Expenses.

   

The Retirement Planner supports the ability to add external accounts. The tool currently supports Brokerage, Bank, Real Estate and Other Asset account types. To add an external account, please take the steps outlined below.

1. Click the plus (+) icon to the right of Accounts

   

2. The Add External Account screen will populate. Select or search for the institution in which you would like to link.

   

3. Enter your login credentials for the external account.

   

4. You will see your external account populate under the Accounts section on the Retirement Planner screen.

   

5. Select the pencil edit icon to edit the external account information.

   

6. If you select Yes to Include in my Retirement Outlook, you will be prompted with the below additional questions.

   Brokerage Accounts -

   • Are distributions during retirement taxable? - We ask this question to determine if we should be deducting taxes from distribution during retirement.

   • Contribution Type - We ask this question to determine how the user will be contributing to the account before retirement.

     • Amount - Annual Contribution Amount - This is the amount that will be contributed to the account annually.

     • Percent - Percent of Total Annual Compensation - This is the percentage of their compensation that will be contributed to their account.

   Bank Accounts

   • Are distributions during retirement taxable? - We ask this question to determine if we should be deducting taxes from distribution during retirement.

   • Contribution Type - We ask this question to determine how the user will be contributing to the account before retirement.

     • Amount - Annual Contribution Amount - This is the amount that will be contributed to the account annually

     • Percent - Percent of Total Annual Compensation - This is the percentage of their compensation that will be contributed to their account.

   • Interest Rate - We ask this question to determine the interest the checking or savings account receives so that we can project the account growth throughout the retirement plan.

   Real Estate and Other Asset Accounts

   • Expected Average Annual Appreciation - We ask this question to determine the average annual appreciate or depreciation a user would expect to see for their other asset account.

   • How will you utilize this asset?

     • Sell the asset

       • Monthly expenses adjustment as a result of the sale - We ask this question to determine how your expenses are impacted at the time of the sale

     • Take a loan against the asset

       • Loan amount as a percent of the asset value - We ask this question to determine how large of a loan they would like to take against the asset

       • Monthly expenses adjustment as a result of the sale - We ask this question to determine how your expenses are impacted at the time of the sale

   • Liquidate Last - Users have the ability to designate only one of their Other Asset accounts as liquidate last. Doing so will result in the specific other asset account being utilized after all other possible accounts have been tapped.

7. Press Save to save the External Account information.

The Retirement Outlook consist of an interactive chart/graph along with a corresponding table to better depict the users retirement picture. Within the Retirement Outlook, you may chose between an Asset Value view and a Retirement Income view. The Asset Value view will show the user how the account values grow before retirement, the value of all accounts at retirement, and how withdrawals from the accounts impacts the value of all accounts throughout retirement. We also offer users to adjust the Period they are viewing so that they may zero in on specific time ranges within their retirement plan. The Market Performance dropdown allows users toggle between their various market performance assumptions to see how it impacts their retirement outlook. You may also chose to turn Inflation Adjusted to No so that you can see your retirement plan without the impact of inflation.

Chart/Graph

Within the Retirement Outlook, you may chose between an Asset Value view and a Retirement Income view.

Asset Value

The Asset Value view will show how the account values grow before retirement, the value of all accounts at retirement, and how withdrawals from the accounts impacts the value of all accounts throughout retirement.

Retirement Income

The Retirement Income view will compare yearly retirement income to yearly expenses during retirement. When the Retirement Income view is selected, the period start date will always be from the designated retirement date (year).

Table

Regardless of the view selected, the table will be shown to give users a detailed yearly breakdown of various retirement figures. Using the gear icon above the table, you may choose which table columns will be displayed.

• Year

• Age

• Starting Value

• Contributions

• Distributions

• Weighted Return

• Ending Value

• Total Retirement Income

• Total Expenses

• Surplus/Deficit

• Total Compensation

• Compensation Growth Rate

• Inflation Rate

• Distribution Income

• Additional Other Income

• Starting Other Assets Value

• Other Assets Sale & Loan Proceeds

• Ending Other Assets Value

Within the Retirement Planner tool, we make various assumptions to assist with projecting the users Retirement Outlook.

General

• Inflation - The inflation rate will remain constant throughout the retirement plan.

• Monthly Expenses - To estimate the users expenses during retirement, we use the current monthly expenses providing and adjust them for inflation accordingly until the end of the retirement plan.

• Compounding - Although we display a yearly frequency, we use monthly compounding throughout the length of the retirement plan.

• Interest Rate - The interest rate provided when including a Bank type account will remain constant throughout the retirement plan.

• Weighted Return - The weighted return takes into consideration each accounts individual expected return along with the account size. This figure will show the combined assumed return for all accounts which are included in the retirement plan.

• Annual Appreciation - The appreciation rate provided when including a Other Asset type account will remain constant throughout the retirement plan.

• Starting Value - The total value of all Brokerage, Bank, and Other Asset Accounts plus any Other Asset sales or loan proceeds.

• Ending Value - The ending value is the total ending value of all Brokerage, Bank, and Other Asset Accounts plus any Other Asset sales or loan proceeds.

Not Retired

• Total Compensation - The compensation provided by the user will grow annually in January at the provided annual compensation growth rate. Compensation will go to zero once retired.

• Compensation Growth Rate - This rate determine how the users total compensation will grow each year before retirement.

• Contributions - Contributions stop once retirement starts

  • Percent Contribution - Percent contributions are added monthly to the respective account as a percentage of total monthly compensation (total compensation / 12).

  • Amount Contribution - Amount contributions are made once annually in January

Retired

• Additional Monthly Retirement Income - Additional monthly retirement income grows annual by the expected inflation rate.

  • Taxable - The net income to be used to cover expenses is calculated by taxable income amount - (taxable income amount * effective tax rate).

  • Non-Taxable - No taxes are withdrawal from non taxable income.

  • Non distribution income will be applied first to cover expenses before any distribution income or sale/loan proceeds.

• Market Return - Market return for Brokerage accounts in retirement is equal to inflation.

• Distributions - Distributions occur only during retirement and only up to the amount needed to cover expenses.

  • Account Priority - Withdrawals are taken first from taxable accounts, then tax differed accounts, then non-taxable accounts, then Other Asset Accounts, then Other asset Last Resort.

  • Taxes - If an account has configured such that distributions are taxable, the total net distribution is calculated by distribution amount - (distribution amount * effective tax rate).

• Other Asset Sale - If selected, an other asset will be sold to cover expenses when all other higher priority accounts have been withdrawn to zero and additional income is needed to cover the total expenses. The sale proceeds will then be used to cover expenses when available. NOTE - Taxes are not deducted from the sale proceeds when selling a Real Estate or Other Asset account type.

• Other Asset Loan - If selected, a loan against an other asset will take place to cover expenses when all other higher priority accounts have been withdrawn to zero and additional income is needed to cover the total expenses. The loan proceeds will then be used to cover expenses when available.