Strategy Scenarios

This page covers the following location(s) in NaviPlan:

Scenario Manager - Modify Financial Data - Strategies - Savings

Scenario Manager - Modify Financial Data - Strategies - Debt Modification

Scenario Manager - Modify Financial Data - Strategies - Redemptions

Scenario Manager - Modify Financial Data - Strategies - Surplus

Planning Objectives :: Procedures :: Screen Notes :: Related Information

Planning Objectives

ClosedWhy edit strategy information for a scenario?

Savings Strategies

  • Use the Scenario Manager to recommend additional savings to your clients or to recommend changes to the savings strategies currently in place.

Debt Modification Strategies

  • Use the Scenario Manager to model the effects of your clients making additional liability payments or increasing the principal of an existing liability.
  • You can also use the Scenario Manager to model the effects of taking-on new liabilities.

Redemptions Strategies

  • Use the Scenario Manager to allow you to model the redemption of assets from an account, annuity, or trust at a given rate over a specified time frame.
    • Additionally, some trusts are available for deficit coverage through manual principal distributions, for the purpose of covering end-of-year cash flow deficits for the surviving spouse.
      Note: This applies to pre-retirement, retirement, survivor income, disability insurance, and long-term care.
    • Be sure to review the liquidation order and asset availability settings after adding all appropriate trusts to the plan.

Deficit Coverage Strategies

  • Use the Scenario Manager to modify the order in which accounts are to be redeemed to cover deficits occurring during the pre-retirement period.
  • Furthermore, some trusts are available for deficit coverage through principal distributions, for the purpose of covering end-of-year cash flow deficits for the surviving spouse.
    • You can define the order in which pre-retirement and retirement deficit coverage automatically make principal distributions from included eligible trusts. Furthermore, you can specify an annual maximum for the amount that can be withdrawn from the trust principal. As a planner, this gives you full control over the automatic distributions.

Surplus Strategies

  • Use the Scenario Manager to modify how surpluses are handled in NaviPlan.
    • Surplus savings: allows you to allocate surplus funds to various non-qualified assets over a period of time, regardless of ownership.
    • Surplus expenses: allows you to model hidden expenses (e.g. unexpected car repairs, dining out, etc).
ClosedWhy do I see system-generated savings strategies on this page?
  • Entering a value other than zero in the Additional Monthly Savings or Additional Lump Sum Savings fields for the: Retirement, Education, Major Purchase, or Emergency Fund sections of the Scenario Manager creates savings strategies in the Savings tab on this page.
    • Deleting these strategies will revert the corresponding Additional Monthly Savings or Additional Lump Sum Savings fields to zero.
ClosedHow do I override information in the Scenario Manager?
  • 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.

Procedures

ClosedHow do I make changes to savings strategies?

From the Savings subtab, follow these steps to edit an existing savings strategy:

  1. From the Qualified or Non-Qualified container, select Override for the strategy you want to modify.
  2. Replace existing data with new values.
    • For Non-Qualified strategies, you can modify the Amount and End Date fields.
    • For Qualified strategies, you can modify the Owner and End Date fields.

Note: For information on these strategies, see the Savings Strategies Help page.

ClosedHow do I make changes to debt modification strategies?

From the Debt Modification subtab, follow these steps to edit an existing debt modification strategy:

  1. Select Override for the strategy you want to modify.
  2. Replace existing data with new values.
    • You can make changes to the Amount, Frequency, Start Date, End Date, Infl, and +/- Add'l fields for this strategy.

Note: For information on these strategies, see the Debt Modification Strategies Help page.

ClosedHow do I make changes to redemptions strategies?

From the Redemptions subtab, follow these steps to edit an existing redemption strategy:

Redemptions

  1. Select Override for the strategy you want to modify.
  2. Replace existing data with new values.
    • You can make changes to the Redeem All and Start Date fields for this strategy.
  3. When you are satisfied with these options, click OK.

Substantially Equal Periodic Payments (SEPP)

  1. Select Override for the strategy you want to modify.
  2. Replace existing data with new values.
    • You can make changes to the Start Date, Frequency, and Distribution Method fields for this strategy.
  3. When you are satisfied with these options, click OK.

Principal Distributions from Trusts

  1. Select Override for the strategy you want to modify.
  2. Replace existing data with new values.
    • You can make changes to the Amount, Frequency, Start Date, and End Date fields for this strategy.
  3. When you are satisfied with these options, click OK.

Note: For information on these strategies, see the Redemptions Strategies Help page.

ClosedHow do I make changes to deficit coverage strategies?

From the Savings subtab, follow these steps to edit an existing deficit coverage strategy:

  1. Select Override.
  2. From Modify Pre-Retirement Deficit Coverage Order, select the Redeem from accounts to cover deficits in pre-retirement period option.
  3. You have two options for the method by which to redeem accounts:
    • To specify the redemption order by account type, select an option from the menu. You may skip the following steps.
    • To specify redemption order by individual account, select View/Modify Deficit Coverage Order and proceed to step 3.
  4. From the Manual Deficit Coverage Order dialog box, Select the Modify the deficit coverage order option.
  5. Use Move Up and Move Down to re-order assets. Assets will be redeemed in descending order.
    Note: You can also use the Account Sorting order menu to sort accounts in this dialog box. Make a selection from this dialog box and click Apply Sort.
  6. When you are satisfied with these options, click OK.

Note: For information on these strategies, see the Deficit Coverage Strategies Help page.

ClosedHow do I make changes to surplus strategies?

From the Surplus subtab, follow these steps to edit an existing surplus strategy:

  1. Select Override for the strategy you want to modify.
  2. Replace existing data with new values.
    • For surplus savings, you can make changes to the % of Surplus, Start Year, and End Year fields.
    • For surplus expenses, you can make changes to the Owner, % of Surplus, Start Year, and End Year fields.
  3. When you are satisfied with these options, click OK.

Note: For information on these strategies, see the Surplus Strategies Help page.

Screen Notes

ClosedCash Flow Graph
  • 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.
ClosedSurplus Cash Usage
  • This button defines the order in which surplus cash is allocated to surplus strategies.
  • Select Override and use the Move Up and Move Down buttons to define whether Surplus Savings or Surplus Expense should take precedence.

Related Information




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