Retirement Scenarios: Redemptions

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 Redemptions container, select an account from the Choose Source Account menu, then click Add Redemption Strategy.
2. To define how and when the account will be redeemed, use one of the following strategies:
   • To redeem the entire account on a given date, select Redeem All and define a Start Date.
   • To redeem the account over time, enter an Amount, a Frequency, and a Start Date.
3. To add further details for the redemption strategy, select .
   • To indicate that early withdrawal penalties should not apply to this redemption, select Waive Early Withdrawal Penalties.
4. When you are satisfied with these options, click OK.

For more information on redemption strategies, see the Redemption Strategies Help page.

1. From the Substantially Equal Periodic Payments (SEPP) container, select an account from the Choose Source Account menu, then click Add SEPP Strategy.
2. Define a Start Date, Frequency, and Distribution Method for the SEPP strategy.
3. To add further details for the redemption strategy, select .
   • Use the Life Expectancy Table menu to define which life expectancy table to use for the SEPP strategy.
4. When you are satisfied with these options, click OK.

For more information on SEPP strategies, see the Redemption Strategies Help page.

1. From the Principal Distributions from Trusts container, select an account from the Choose Source Account menu, then click Add Trust Strategy.
2. Define an Amount, Frequency, Start Date, and an End Date for the trust strategy.

For more information on principal distributions from trusts, see the Redemption Strategies Help page.

• 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.