Retirement Objectives

• In NaviPlan, retirement is treated as a goal rather than just a period of time. This means you can:
  • identify a specific need
  • allocate funds to goals
  • see any shortfalls in savings
• NaviPlan makes recommendations to achieve the retirement goal without taking cash flow into consideration.

• NaviPlan assumes that the retirement period begins on January 1 of the year in which the first client retires and ends on December 31 of the year in which the last client in the plan dies.
  • Retirement dates can be entered as an age or as a specific date. Changes made on one page carry through to other relevant pages.
  • Retirement dates can be changed for the purposes of specific planning goals (modules) such as life, disability, and insurance.

• NaviPlan contains detailed reports for both the current and proposed plans. You are able to generate client reports for both scenarios in order to demonstrate the value of your planning.
  • The current plan represents the clients' current financial situation as entered in the Enter Financial Data and Set Goals sections. This situation shows the clients' current progress toward their goals.
  • The proposed plan represents the current plan with any modifications you have made.
• For more information on the Scenario Manager, see the Analyze Goals help page.

• If you enter a start age for an income or expense, the income or expense starts at the end of the month in which the owner turns the specified age.
• If the frequency is Annual, the entire annual income or expense is included in the first year of retirement.
• If the frequency is Monthly, the income or expense starts at the end of the month in which the owner turns the specified age, resulting in less than one full year of income or expense in the first year of retirement.
• If a retirement income or expense must start on a specific date and not at a specific age, it should be entered on the Cash Flow page, along with an appropriate end date.
• Expenses can be entered for the entire retirement period, or they can be entered in a stepped format.
  • The latter is useful when the clients’ needs change during the retirement period.
    For example: clients may expect to need $65,000 annually from age 65 to age 75, but then expect to reduce or increase spending from age 75 to 80.

1. From the Objectives container, define <client>'s Retire At date using either the Age or Date field.
2. From the Objectives container, define the <client>'s Life Expectancy using either the Age or Date field.
3. Repeat steps 1-2 for <co-client>, if applicable.

NaviPlan offers three methods to help you determine retirement expenses for your clients. You can enter expenses as:

A percentage of the clients' current income

1. Enter a percentage value into the field. You will notice that the clients' income has already been populated here from the Cash Flow page.
2. NaviPlan now calculates the annual and monthly value for the expense.
3. When you are satisfied with these options, click Add to Retirement Expenses.

A percentage of the clients' current lifestyle expenses

1. Enter a percentage value into the field. You will notice that the clients' expenses have already been populated here from the Cash Flow page.
2. NaviPlan now calculates the annual and monthly value for the expense.
3. When you are satisfied with these options, click Add to Retirement Expenses.

A specific amount

1. Enter a specific annual amount for the expense into the field.
2. NaviPlan now calculates the monthly value for the expense.
3. When you are satisfied with these options, click Add to Retirement Expenses.

• Use this page to add expenses that apply exclusively to the retirement period. If your clients have incomes and expenses that begin in pre-retirement and continue into the retirement period, add them on the Cash Flow page instead.

1. Select Override from the Profile container.
2. Make a selection from the Investor Profile menu.

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

• Use this button to view and edit the clients' investor profile.

• Use this button to view and edit the clients' current allocation of assets to goals.

• Use this button to view and edit the clients' strategies in place for the liquidation of assets in retirement.

• Use this button to view and edit the clients' strategies in place for the transfer of value from one asset to another.