Disability Income Scenarios: Goal and Expense Analysis

Goal Coverage graphics and Slider Bars

• On each goal page in the Scenario Manager you will find a Goal Coverage graphic and a set of slider bars. See an example of each below:
  
• Goal Coverage is the percentage of all cash outflows allocated to the goal that can be covered using all resources allocated towards the goal.
  • The Goal Coverage graphic indicates what portion of the clients' goal is projected to be adequately funded in the selected scenario.
• The slider bars allow you to easily modify some of the major factors that go into this projection. Drag the slider bar to the right or left to change the value.
  • Alternatively, you may also type values into the associated text fields.
  • Important! When you make changes to slider bars the rest of the selected scenario will update according to your changes.
    For example, adding $225 to the Additional Monthly Savings slider bar for the retirement goal will create a savings strategy for $225 on the Strategies page in the Scenario Manager for the selected scenario.

What Are My Options? (WAMO)

• NaviPlan allows you to make changes to many variables associated with your clients' goal. This allows you to create highly customizable and detailed plans. However, creating an optimal scenario can be difficult with so many options.
• You can click What Are My Options? to get a list of solutions for the current goal. Each solution will result in 100% Goal Coverage.
  • You can select one of the presented options—or—you can go back to the goal screen and create a strategy that uses a combination of the strategies suggested by NaviPlan.
    For example, selecting What Are My Options? for a retirement goal may result in a suggestion to save more monthly, retire later, or to save a large lump sum today. If these options are not feasible for your clients, you can go back to the goal page and recommend a combination of all three; save a smaller sum today, save a smaller amount monthly, and retire only a short time later than originally planned. In either case, the What Are My Options? feature can add value.
• WAMO calculations are useful even when a goal is adequately funded or overfunded.
  • In the case of an adequately funded goal, WAMO can still be used to find optimal allocations for the goal.
  • In the case of an overfunded goal, WAMO will show the amount needed to adequately fund the goal, allowing you to leverage the remaining value elsewhere.

• 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.

1. From the Assumptions subtab, select the relevant Override option for Disability Retirement Age, Disability Life Expectancy, and/or Analyze Disability To.
2. Enter new data into the Age or Date fields.

1. From the Ongoing Expenses subtab, select the Override option for Percentage of lifestyle and medical expenses to cover.
   • Enter new data into the field.
2. If applicable, select Education Expenses.
   • For each education goal you wish to modify, select the Override option and enter a new value into the % to cover field.
3. When you are satisfied with these options, click OK.

1. From the Ongoing Expenses subtab, select Add Additional Expense.
2. Enter information for the new expense including a Description, an Amount, the Frequency, the Start Date and End Date, as well as whether or not to index the expense for inflation.

To add new incomes in the Scenario Manager:

1. From the Additional Annual Income subtab, select Add Additional Income.
2. Enter information for the new expense including a Description, the Income Type, the Annual Amount, the Start Date and End Date, as well as whether or not to index the expense for inflation or any other indexation.

To make changes to existing incomes:

1. From the Additional Annual Income subtab, select Override for the income.
2. Replace any of the existing data with new data.

1. From the Lump Sum Needs subtab, select Override liability pay off strategies.
2. Select one of the two following options:
   • Pay off all liabilities: Select this option if the clients would like to pay off liabilities in a disability situation.
   • Maintain all liability balances: Select this option if the clients have sufficient cash flow and do not want to have liabilities paid off.

1. From the Lump Sum Needs subtab, select Override for the major purchase goal.
2. Enter a new value for % to Cover.

1. From the Lump Sum Needs subtab, select Add Lump Sum Need.
2. Enter a Description and Amount for the newly created need.
3. If applicable, use the Infl and +/- Add'l fields to model the effects of inflation as well as any other indexation amount to the need.

• Scenario reports analyze detailed information related to the selected scenario.
• The exact information shown depends on the goal and which report you choose to run.
• For more information, see the Scenario Reports Help page.

• Use Compare Scenarios to quickly get detailed comparison information for a single goal from two scenarios.
• The exact information shown depends on the goal.
• For more information, see the Compare Scenarios Help Page.