Emergency Fund Objectives

• By default, an emergency fund equal to the clients’ average expenses for three months is included in the plan.
  • If no assets have been allocated to the emergency fund, reports will show that it is underfunded.
  • On the Emergency Fund page, the default emergency fund value can be modified to better meet the clients’ needs, assets can be allocated to the emergency fund, or the emergency fund can be removed from the plan.
• Only one emergency fund goal can be created for each plan.
• If the plan is a joint analysis (a plan created with both a client and co-client), NaviPlan assumes that the emergency fund goal is jointly owned with 100% transferring to the survivor upon death.

NaviPlan provides two options for defining the emergency fund goal. Select one of the following methods:

• Calculate target amount:
  1. Enter a value in the Multiple field. This value indicates how many month's-worth of expenses the emergency fund goal should cover.
  2. If applicable, select the Infl and/or +/- Add'l fields to index the cost of the goal.
  3. The total amount for the goal is shown under Target Amount.
• Specify target amount:
  1. Enter the Target Amount for the goal.
  2. If applicable, select the Infl and/or +/- Add'l fields to index the cost of the goal.
• Specify target savings period:
  1. Enter the Savings Period (in months) for the goal.

• The emergency fund asset is reserved until either Retirement or plan end. Use the options under the Reserve Asset Until section to control when the asset exits reserves.

• Use this button to view and edit the clients' current allocation of assets to goals. For more information, see the Goal Funding help page.

• All accounts allocated toward the emergency fund goal appear on this page under Emergency Funds Accounts. The market value of each account displayed reflects the value of the account—not the amount allocated to the emergency fund goal.
• Any accounts not allocated to a goal appear under Unassigned Accounts.