Cash Flow Scenarios

Incomes:

• You can use the Scenario Manager to model changes to retirement and pre-retirement incomes for your clients. You can modify the amount, start and end date, as well as the effects of inflation on incomes.

Pensions:

• You can use the Scenario Manager to modify inflation and indexation assumptions, payout method, and future benefit values for any pensions in the selected scenario.

Existing Expenses:

• You can use the Scenario Manager to modify the percentage of pre-retirement and retirement expenses to cover for the selected scenario. This allows you to model the effects of increasing or reducing expenses during either period.

New Expenses:

• Use the Scenario Manager to add expenses that apply only in the selected scenario.

• The Scenario Manager reflects the information entered in the clients' current plan. To override this information with scenario-specific assumptions and strategies select the Override option for the appropriate item.
• The Override option will appear in one of two ways in the Scenario Manager:
  • As an unlabeled check box beside a disabled field: .
  • As a labeled check box: .
• Once you have selected Override, the relevant fields will become editable.
• Clearing the Override option will undo any changes you have made and revert information back to match the Current Plan scenario.

From the Incomes subtab, follow these steps to edit an existing income:

1. Select Override for the income.
2. If applicable, enter a new Amount, Start Date, and/or End Date for the income.
3. To enter additional changes, select for the income.
4. Use the Infl and the +/- Add'l fields to model the effects of inflation as well as any other rate of indexation that applies to the income.
5. When you are satisfied with these options, click OK.

Note: For information on entering new incomes, see the Cash Flow Help page.

From the Pensions subtab, follow these steps to edit an existing pension:

1. Select Override for the pension.
2. If applicable, enter a new Est. Benefit Amount or % of Final Salary for the pension.
3. Use the Infl and the +/- Add'l fields to model the effects of inflation as well as any other rate of indexation that applies to the pension.
4. If applicable, modify the Method of Payout from the Benefit Payout Options section.
5. You can also make changes to future benefit amounts for the pension from the Future Benefits subtab.
   • Review the displayed items. To override any of the data you see here, select Modify the Calculated Values and enter the benefit information you want to use.
     OR
   • You can use the options in the Fill Values container to define a starting value indexed at a given rate over a period of years. To do this, make a selection from the Column to Fill menu, enter the criteria by which NaviPlan should calculate the amounts, and click Fill.
6. When you are satisfied with these options, click OK.

Note: For information on entering new pensions, see the Cash Flow Help page.

From the Existing Expenses subtab, follow these steps to edit information for existing expenses:

• Use the Pre-Retirement and Retirement fields to indicate what percentage of fixed and discretionary expenses should be covered during the pre-retirement and retirement periods for the selected scenario.

Note: For information on expenses, see the Cash Flow Help page.

From the Pensions subtab, follow these steps to add a new expense:

1. Use Add Pre-Retirement Expense or Add Retirement Expense to enter a new expense to apply in the selected scenario.
2. Enter information for the new expense.
   • For more information on entering expenses into NaviPlan, see the How do I add my clients expenses? section of the Cash Flow Help page.
3. When you are satisfied with these options, click OK.

Note: For information on expenses, see the Cash Flow Help page.

• This graph displays your clients' cash flow surplus/deficit information annually. You can modify which years are shown using the Next 5 Years, Pre-Retirement, Retirement, and All Years links.

• You can use the Display menu to narrow the entries shown by a specific category.
  • For example: The Display menu on the Incomes subtab narrows the incomes displayed to show pre-retirement incomes, retirement incomes, or all incomes based on your selection.