Xplan Retirement Funding Calculator

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1 Using as part of your new client or review process The Xtools retirement funding calculator is a powerful point of sales tool. It allows you to project the clients existing portfolio position and identify whether the client has sufficient funds to meet their retirement objectives, as well as identify the required annual contribution required to meet any identified shortfalls. It can be a useful tool within an initial meeting with a prospect. Alternatively, you may choose to use this as part of your review process with existing clients. Note: There are a number of standalone Xplan calculators which provide powerful point of sales results for clients. Refer to the Help guide or contact your Adviser Systems trainer. Input screens 1. Ensure basic client data is entered into Xplan as per your normal client process. 2. Go into Xtools and click on Retirement Funding 3. Create your scenario name in the free text box and click on Add In our example we have simply called the scenario Current Position. RI Advice Group Pty Ltd ABN AFSL Registered office Level 13, 347 Kent Street Sydney NSW

2 Page 2 of 9 4. The process is simple. Simple go through all of the Input screen found on the left hand side. DO NOT click on OK until all the input screens have been completed. By click on OK, this will take you into the display or results screen. Simply follow the input screens. Do not click on OK until you have completed all the INPUT screens. 5. Enter the clients Personal Data 6. Enter any client objectives This includes retirement age, current income, living needs and other expenses (eg holiday, new car every 4 years, estate planning residual etc). Important: Under personal objectives, the system asks you to enter the client s salary. This is for superannuation projections only. You must input the client s income again, under the Income section below. Simply use the drop down screens to change the variables. In this example, we will show projection for the client s life expectancy with a proposed retirement age of Enter the clients Investment information. This includes the clients Super, Non-Super and non financial assets.

3 Page 3 of 9 8. Click on the Retirement screen. This screen allows you to select when you wish to rollover the funds into an income stream. It also allows you to select what income level you wish to draw. The super fund will be rolled over at age 65. As TAP s no longer exist, this can be left at 0. In our example we have selected Expend Portion. This will effectively draw the income required to meet the income needs of the client. You are able to select a different income level by using the drop down box. 9. Input any Income Support components required.

4 Page 4 of The Insurance screen allows you to identify the impact on the clients/partners situation should someone pass away based on their existing level of insurance cover. In our example, the client is single hence we will not use this screen. It can be quite powerful to demonstrate the positive impact insurance can have on a client situation. 11. Select Economic and update any risk profile and applicable fee charges. Once you have completed entering all the clients data, you can now click on OK. This will take you to all the display screens. Important point to note: Liabilities The retirement funding calculator does not provide provision to input a liability. In order to capture a liability, you need to input the regular loan repayments as part of your ongoing expenses. With relation to the repayment of the principal loan amount, you need to input this as a capital expense requirement in the year the client would like this liability paid off.

5 Page 5 of 9 Results screens You have two options with relation to how you can view the results of your inputs. You can view this through the display screen or through the charts screen. Display view this provides an analytical view of your results. You can break down the projections into a general overview via the Retirement Wealth screen, or alternatively drill into a breakdown of specific individual components of the client s situation such as super or tax. Retirement Wealth the RW screen provides a general breakdown of both the asset position and cash-flow position of the client. The cash-flow position (found by scrolling down the page) is especially important and will provide the basis of strategic discussion (eg if insufficient cash-flow, where is money being spent, or how can shortfall be made up). Note: If the client has particular circumstances which have not been captured under the Input screen such as a tax deduction which you wish to capture, this can be done under the detailed Display screen. In our example below for instance, if the client has a tax deduction which you wish to capture, by clicking on Tax you can see that the system has data entry boxes available to input the relevant deduction (note, if the value is a recurring value, click your right mouse button, and enter the recurring sequence).

6 Page 6 of 9 Chart view This provides the result diagrammatically which for some clients is easier to understand. As per the Display view, simply select the applicable charts you wish to discuss. How do you determine what the funding shortfall is? Through the different charts or projections, you can identify if the clients has sufficient capital and income to meet income requirements. Xplan does have a Target screen which provides you with the ability to identify any shortfalls in funding requirements. There are a number of different target benchmarks which can be captured. In the example below, we have simply selected the clients pre tax position. This provides the level of salary sacrifice contributions required.

7 Page 7 of 9 Other interesting points of analysis The Retirement Funding calculator also has a number of charts which assist in you in positioning a strategic focus. Examples include the impact on your portfolio for taking on different levels of risk, retiring earlier/later, or varying the level of expenses. Once you have complete d your analysis of the client s CURRENT position, you are able to take a copy of this and make changes. To do this, simply place your mouse cursor over the scenario name, click your right mouse button and select Save As. Call the new scenario an appropriate name (eg salary sacrifice etc). This function also allows you to switch inbetween scenarios.

8 Page 8 of 9 Producing a report of your results In order to provide your clients with a result of your analysis, there are a number of ways to produce the reports from Xplan. 1. Simply click on Print at the top of the page. This will provide a print out of the display currently being viewed on your screen. 2. Go into back into Client Focus, select Wizards and click on Xtools Outputs. This will allow you to select a number of individual reports from your analysis. When in Xtools Outputs, click on Add at the top of the page. Once you have selected add, it is simply a matter of selecting the options from the available drop down boxes. Where you wish to provide your own commentary, this can be done in the free text box. If you wish to add additional analysis as part of your output, simply tick the Add More box and select Save at the top of the page.

9 Page 9 of 9 Simply choose your options from the drop down boxes. When you have completed your selections, simply click on Save. Once complete, select Merge Outputs to produce your results. The final step is to select the scenario which you wish to print out. Simply click your mouse on the magnify glass. This will create a drop down box which allows you to select the applicable scenario which you have modelled. Once selected, click on Execute at the top of the page.