PlanPlus Planit – Quick Reference Guide

PlanPlus Planit
Quick Reference Guide
Contents Features: Professional Level 1 (Complimentary Features) .................................................................... 3 Features: Level 2 & 3 (Additional Fees Apply) ....................................................................................... 4 Navigation ........................................................................................................................................... 5 Client Data Entry – Life Planning .......................................................................................................... 6 Personal Information ............................................................................................................................ 6 Planning Assumptions ........................................................................................................................... 7 Assets & Liabilities ................................................................................................................................ 8 Insurance ............................................................................................................................................... 9 Cash Flow Management ....................................................................................................................... 9 Risk Profile........................................................................................................................................... 10 Portfolio Objectives ............................................................................................................................ 10 Asset Allocation ................................................................................................................................... 11 Product Selection ................................................................................................................................ 11 Your Working Documents ................................................................................................................... 12 Calculators – Retirement Goal Needs Analysis ................................................................................... 13 Client Information ............................................................................................................................... 13 Assumptions & Notes .......................................................................................................................... 14 Goals ................................................................................................................................................... 15 Investment & Savings .......................................................................................................................... 15 Pensions & Other Revenues ................................................................................................................ 16 Results ................................................................................................................................................. 16 Planning Alternatives .......................................................................................................................... 17 Getting Help ...................................................................................................................................... 18 PlanPlus Planit – Quick Reference Guide 2 PlanPlus Planit – Quick Reference Guide Features: Professional Level 1 (Complimentary Features) A variety of modular Financial Planning Calculators with PDF reports, including the Modular Retirement Planning Calculator provides quick information to get answers i.e. Can I retire? Investment Policy Statement – Create an editable Word document that can be simple and quick or complex and rich. Investment Planning with Multiple Risk Profiles and Multiple Portfolios – i.e. money earmarked for different purposes, family with different risk tolerances, etc. Morningstar data – daily pricing available every night; including fund fact sheets Free Help Desk Support and Free Planit Learning Circle training (lunch & learn program 15‐20 minute training). CE credits on e‐learning where available. Includes Advanced Investment Planning – ability to enter detailed holdings into multiple accounts; create unlimited “Favourite Product” lists; create “Preferred Portfolios” making the investment recommendation process much more efficient. Security selection features allows you to create detailed implementation plans based on proprietary investment products (separately managed accounts) or using Morningstar data. 3 PlanPlus Planit – Quick Reference Guide Features: Level 2 & 3 (Additional Fees Apply) Level 2 •
Personal Financial Strategy document that uses a cash flow based approach with full graduated tax rates for each of the client’s goals (every goal can be considered not just retirement) •
Access to the unique Auto Model process to quickly and efficiently identify behaviour changes the client can make to have an achievable strategy •
Demonstrate the value of advice with a powerful before and after comparison •
Includes comprehensive needs on death and disability analysis •
Progress and Accountability Review process that measures a client’s progress and trends (past and present) in a visually pleasing manner •
Various other documents for specific client needs Level 3 •
Enhance Life Goals Planning by incorporating estate planning, long term care, and critical illness planning (i.e. distribution of estate upon death) •
Create multiple scenarios as an alternative to the standard Auto Model Process •
Perform a stock option analysis with a detailed report •
Identify the value of a business, farm, rental property or cottage on disposition including tax consequences •
This level is appropriate for advisors holding forth as a financial planner or performing more advanced estate planning functions 4 PlanPlus Planit – Quick Reference Guide Navigation French/English language selection. Live chat, help screens, and a wide selection of training materials. Search, add, & manage clients. Data entry process flow screens to enter information required to provide the selected service (Life Planning, Income Replacement, & Investment Policy). Advisor set‐up & preferences Calculators to perform a variety of financial functions: •
Retirement, Education, & Other Goal Needs Analyses •
Life Insurance and Disability Calculators •
Critical Illness Calculator •
Long Term Care Calculator •
Loan Calculator •
Historical Returns Calculator •
Registered Payout Illustration Calculator •
IRA Calculator •
Present and Future Values •
Rate of Return Calculator •
Bond Calculator •
Retirement Income Calculator •
Efficient Frontier Calculator •
Leverage Calculator •
Debt Consolidation Calculator Sign up for presentation sessions with the vendor Register for 30 minute webinar sessions with the vendor. 5 PlanPlus Planit – Quick Reference Guide Client Data Entry – Life Planning To begin: 1. Click Add Client or Client Search in the Selection area. 2. On the Home screen select Life Planning from the Client Data Entry menu. 3. Click on Personal Information to enter/verify data on the first screen in the process flow. Click Help to view detailed information about the specific screen you are viewing. PERSONAL INFORMATION
The Personal Information screen is the starting point of entering clients into the software. This is where you can enter personal details and information about any dependents. Move to the next screen in the process flow using the arrows or select a screen from the menu. Enter the information within each of the blue tabs and click Save. 6 PlanPlus Planit – Quick Reference Guide PLANNING ASSUMPTIONS
On the Planning Assumptions screen you can identify the various assumptions for future planning, for example unused RSP contributions, CPP/QPP eligibility, and OAS benefits. Rate Reduction ‐ used to reflect across the board reduction in returns (for example to offset MERs, cost of management, or to be more conservative in return assumptions for long‐term planning purposes). 7 PlanP
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e Guide
e The Assetss & Liabilities sc
reen allows you to identify the cclient’s assets an
nd liabilities, as well as any savin
ngs for these acccounts. ASSETS
& LIABILITIE
ES
Sufficient d
data can be ente
ered to generatee a net worth staatement for the client. You ccan enter a grand
d total for each section, or expaand the sectio
ons to enter specific assets usingg the Product Selection screen (see below). Clicck Report to opeen Holding Staatement & Net W
Worth rep
ports in a pop‐up
p window. Usee the Product Se
election screen tto search for funds by name,, company, or prroduct cod
de. oes not To manually input an asset that do
pear in the searcch, click Add Cusstom (i.e. app
non
n‐public productt). Note: Pricing will not upd
date for custom assets. Click Details to C
reeview Fund In
nformation from
m M
Morningstar. Note: Funds can N
be marked as faavorites, seearchable from th
he Favourites lisst
8 PlanPlus Planit – Quick Reference Guide INSURANCE
The Insurance screen is where you can record all life and/or disability insurance policies presently in place. The software will take into consideration all existing coverage in the analysis of client death or disability. CASH FLOW MANAGEMENT
The Cash Flow Management screen is where you can identify the income and family expenses for clients. This is important information for further analysis to determine the resources available to achieve personal goals and objectives. Click to open an Income Tax Projection report in a pop‐up window. After entering the Annual Income and Investment Income, click Calculate to generate the associated savings, taxes, and expenses. 9 PlanPlus Planit – Quick Reference Guide RISK
PROFILE
The Risk Profile screen covers the fundamental aspect of “Know Your Client” requirements for Financial Planners. It also identifies the client’s risk profile to create an appropriate asset allocation strategy. Once the risk profile is completed, the system calculates the risk tolerance (high, low, or average). Additional questions are available within the Know Your Client tab. Note: a risk profile can be completed for any adult in the plan. Portfolio Objectives
The Portfolio Objectives screen allows you to create multiple portfolios in the system with different investment objectives for each portfolio. Accounts associated with this portfolio are pulled in from the Assets & Liabilities screen. The client's Risk Tolerance is listed, with the option of having a different risk tolerance for the portfolio. Goals identified on the Objectives screen can be associated with specific portfolios (i.e. Education).
Click to create a New Portfolio for the client. This is helpful when managing goals with different time horizons (i.e. Educational goals). 10 PlanPlus Planit – Quick Reference Guide The Asset Allocation screen displays asset classes in a portfolio against a target portfolio based on custom weightings or a selected ASSET
ALLOCATION
investment style (income, growth, all equity, etc.). Select from client portfolios to display the current return, percent, and amount for each asset class. Choose the investment style or use custom to input your own weightings.
Click Calculate to display the target portfolio based on the investment style selected or custom weightings. PRODUCT SELECTION
The Product Selection feature allows you to select specific securities to fulfill the client’s asset allocation target. Deselect accounts and click Update View to display only the products within select accounts on the bottom half of the screen. Click Select under Choose Portfolio, Add Favourites, or Choose Fund to select a pre‐
established portfolio or a specific fund. To cancel the selection, click Reset. Edit the Recommended allocation by dollar amount or percentage. Clicking on the $ or % symbol will allow you to switch between the two. 11 PlanPlus Planit – Quick Reference Guide Within the Your Working Documents screen you can generate reports for your client and save them to your ‘Safety Deposit Box’, located on the homepage. YOUR WORKING DOCUMENTS
Choose the document from the Select Document area, click Generate Document, select the sections to include in the report, and click Continue. Once the report has been processed, it will be ready to download from the Your Processed Documents area. Enter a description and click Save to add the document to your Safety Deposit box on the homepage 12 PlanPlus Planit – Quick Reference Guide Calculators – Retirement Goal Needs Analysis To begin: 1. Search for client in the Client Search area (If client is not added, continue to step 2). 2. Select Retirement Goal Needs Analysis from the Calculators menu. The Retirement Goals Needs Analysis calculator is a valuable tool that identifies if clients can achieve their retirement income goals. To complete the calculation, enter the details within each of the tabbed sections and click Save. CLIENT INFORMATION
13 PlanP
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e Within thee Assumptions &
& Notes tab you can identify thee various differen
nt assumptions ssuch as, CPP/QP
PP eligibility, and
d OAS beneffits. ASSUMP
PTIONS & NO
OTES
Click on Edit Govvernment Beneffits to specify the percentage off eligible CPP as C
w
well as the client
t’s start age. In the Old Age Se
ecurity (OAS) seection, select thee number of years of residency t
the client will ha
ave in Canada byy the time they rreach age 65. Clicck on Add/Remo
ove Benefits to aadd CPP
P Disability or reemove CPP and O
OAS from the Assumptions screen. 14 PlanPlus Planit – Quick Reference Guide The Goals tab is where the goal is identified along with the inflation rate, tax rate and length of the goal. Checking the Full Tax Calculation box will prompt the analysis to use full graduated tax rates for the client and spouse starting in the year of retirement. When this box is NOT checked the analysis will use an average tax rate approach. Note: both the average tax rate and graduated tax rate versions will use the tax rate entered in the Tax Rate field for the pre‐retirement period. This means that the manually entered tax rate will be used when calculating the tax on investment income pre‐retirement since in the pre‐retirement period the calculator has no information about the client's other taxable income so it cannot apply graduated tax rates. GOALS
Clicking the plus symbol beside Requirement allows you to tier the retirement income goal in 1, 2 or 3 tiers. For example, if there is a need for higher income during the client’s young and healthy retirement years, then scaling their income down as they age and have smaller requirements. The Investment & Savings tab is where you can identify any investments your clients have as well as any annual savings. INVESTMENT
& SAVINGS
Use the drop‐down list to select the client's current portfolio, their target portfolio, or any of the standard portfolios available which will determine the rate of return and the standard deviation to be used in the analysis. You also have the option to select a custom rate of return which will let you manually set the rate of return to any number you choose. 15 PlanP
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e The Pensioons & Other Revvenues tab is whhere you can reccord revenue the client will receeive. The screen will be pre‐popuulated with any ggovernment ben
nefits that are ap
pplicable. PENSION
NS & OTHER REVENUES
S
The Resu
ults tab providess a quick glance o
of the total net present value off all investmentss, revenues, taxees as well as the goal. It will subtr
ract the goal fro
m the after tax income to deterrmine whether tthere is a shortfaall or a surplus. RESULTS
S
Clickk Percent of Goaal Achieved to reveeal a graphical reprresentation indicating the ome available. inco
Select a report from the Docum
ments menu and
d click View. Cheecking Include ncludes options ffrom the Plannin
ng Alternatives ttab highlighting Alternatives in
possible changes that can be m
made to eliminatte a shortfall. To save the rep
port in the Document Vault, entter the file namee and click Save. The Reliability ecast calculator Fore
analyzes the bability of a prob
clien
nt being able to achiieve their retirrement goals reco
ognizing a series of liffe expectancy and rate of return umptions. assu
16 PlanPlus Planit – Quick Reference Guide The Planning Alternatives tab allows you to modify the income available, rate of return, the retirement date, the age of mortality, or alternate capital savings to determine how changing these factors will impact the client’s ability to meet their goal. A note at the top of the screen indicates how much of an adjustment is required to meet the goal. PLANNING ALTERNATIVES
Select a Planning Alternative and click Calculate. Once the planning alternative is calculated, an Interactive Target scroll bar is presented. This allows you to change the alternative to see how it impacts the target goal. 17 PlanP
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e Gettingg Help ware. A wide vaariety of help and training options are available directly from thhe PlanPlus softw
Each screeen has a Help link at the top of the page that oppens a secondaryy window contaiining a detailed exxplanation of the screen, including instructional videos (where available). Clicking thhe Training link oon the top menuu bar opens the PlanPlus Planit TTraining Centre, which includes links to the Plannipedia user guidee, Learning Circle
e webcasts, e‐Leearning modules, FAQs, Quick Tips, and Fact Find
der client questiionnaires. 18 PlanP
Plus Planit – Quick Re
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e Through thee Live Chat link on the top menu bar you can sppeak to a PlanPluus support repreesentative live too answer questioons regarding th
he software. Technical support is availab
ble by calling thee PlanPlus suppo
ort line at 1‐800‐601‐1762 or byy email at [email protected]
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