Quick Overview & Detailed Tutorial · profile and read company announcements. From My Site you can also access supporting documentation and training resources. My Site is divided

Quick Overview & Detailed Tutorial

2

Copyright Notice:

Copyright © 2003-2006 Impact Technologies Group, Inc. All Rights Reserved. Information in this document is subject to change without notice. The software described herein is furnished under a license agreement. The software may only be used in accordance with the terms of that agreement. No portion of the contents within this document may be reproduced, stored in a retrieval system, or transmitted in any form by any means without the expressed written consent of Impact Technologies Group, Inc.

Trademarks:

PlanLab® is a trademark of Impact Technologies Group, Inc. Adobe Reader® is a trademark of Adobe Systems Incorporated. Other brands and products may be trademarks or registered trademarks of their respective holders and should be noted as such.

Tutorials and Support:

For more detailed information concerning the content found in this tutorial, please consult the other tutorials available online at http://www.impact-tech.com/. Should you need additional support, have questions, or if you would like to provide feedback, please contact our Customer Support Department at 1-800-438-6017 Ext 2.

3

Table of Contents

Quick Overview & Detailed Tutorial.............................................................................................................. 1 Copyright Notice: ................................................................................................................................... 2 Trademarks:........................................................................................................................................... 2 Tutorials and Support:............................................................................................................................ 2

Table of Contents ......................................................................................................................................... 3 PlanLab System Requirements ..................................................................................................................... 5 Introduction to PlanLab ............................................................................................................................... 6 Quick Overview............................................................................................................................................ 7

Login to PlanLab..................................................................................................................................... 7 My Site ................................................................................................................................................... 8 Clients Screen ........................................................................................................................................ 9 Client File ............................................................................................................................................. 10 Detailed Planning................................................................................................................................. 11 Product Views ...................................................................................................................................... 12

Detailed Tutorial ........................................................................................................................................ 13 My Site ................................................................................................................................................. 13

Start a New Client File with PlanFacts..................................................................................................................................................... 14 Clients with Tasks Due............................................................................................................................................................................ 14 My Info................................................................................................................................................................................................... 15 Announcements....................................................................................................................................................................................... 16 Prospecting Center .................................................................................................................................................................................. 16 Training .................................................................................................................................................................................................. 17 Support Services...................................................................................................................................................................................... 17

Clients Screen ...................................................................................................................................... 18 Creating a New Client ............................................................................................................................................................................. 18 Accessing an Existing Client ................................................................................................................................................................... 20

Client File ............................................................................................................................................. 21 Navigation .............................................................................................................................................................................................. 21 Dashboard............................................................................................................................................................................................... 22 Analysis & Documents............................................................................................................................................................................ 23 Tasks ...................................................................................................................................................................................................... 24 Client Management ................................................................................................................................................................................. 25

4

Detailed Planning................................................................................................................................. 26 Detailed Planning Sections (Quick Overview).......................................................................................................................................... 26 Client Data.............................................................................................................................................................................................. 28 What-If Scenarios.................................................................................................................................................................................... 29 Cash Flow Snapshot ................................................................................................................................................................................ 33

PlanLab Product Views......................................................................................................................... 35 ‘Client-Centric’ Approach ....................................................................................................................................................................... 35 Financial Needs Analysis......................................................................................................................................................................... 36 Financial Strategies ................................................................................................................................................................................. 39 Estate Tax Analysis ................................................................................................................................................................................. 42 Wealth Distribution Analysis ................................................................................................................................................................... 46 QPDA..................................................................................................................................................................................................... 50

Thank You .................................................................................................................................................. 54

5

PlanLab System Requirements

Internet Access

Internet Explorer 6.0 with Service Pack 1 or later

Other Software Requirements

Adobe Acrobat Reader version 4 or later

6

Introduction to PlanLab

PlanLab delivers complete planning power to advisors allowing them to serve any type of client regardless of need or income level. PlanLab is designed with all advisors and clients in mind, and uses intuitive features that make it easy to collect and analyze client data, motivate clients to action, and monitor their progress. PlanLab’s design is based on a “client-centric” approach that gives you the ability to enter client data in one place and then view that data from multiple planning perspectives, such as a quick capital needs analysis presentation, a detailed, comprehensive, fee-based analysis presentation, estate planning, cash flow analysis, qualified plan distribution analysis, etc. One of the major benefits of the “client-centric” approach is that all client information and printed presentations are kept together in one place. One set of data is stored for each client. One set of calculations is used to analyze a wide range of planning needs. One set of presentations creates a consistent look and feel for your client presentations. And when it is time to collaborate with other planning experts, advisors can add experts as “team members” and allow them to view the client file. PlanLab gives you one system to service all of your clients—regardless of their income level or planning need.

7

Quick Overview

Login to PlanLab

To login to PlanLab you will be asked for your access information. Enter your User ID Enter your Password Click on the ‘Login’ button In case you forget your password, click on ‘Forgot your password?’ A new password will be sent to your email account.

8

My Site

After logging into the system, you will land on the ‘My Site’ screen. The ‘My Site’ screen is designed to accomplish two things:

1. My Site provides the home office a way to communicate with advisors whenever they access the site.

2. My Site gives advisors a place to quickly access

commonly used tools. To navigate to different screens in PlanLab, use the tabs at the top of the screen. To log out of PlanLab, click the ‘Log Off’ button.

9

Clients Screen

The Clients screen provides access to your client list. On this screen, you can create new clients as well as access existing ones. Client Search The Clients screen allows you to search for specific clients by name or geographic location. Create a Client If you are entering client information for the first time, you will be able to create a new client by clicking on ‘New Client’. Client List The Clients screen contains a comprehensive list of all your clients presenting the household name, the date and time when the client information was modified, the name of the client’s primary advisor, and the client’s address information. Client Detailed Information To access or enter detailed information for your clients, you can click on the client’s name to bring up the ‘Client File’ for that client.

10

Client File

The Client File is an electronic version of the ‘manila folder’ advisors typically maintain for each of their clients. It contains the following components. Dashboard Contains an overview of the client household information and additional instructions and materials powered by business rules. Analysis & Documents Lists the latest printed presentations delivered to the clients. Also allows the advisor to upload any documents received from the client. Tasks Allows advisors to assign tasks to themselves or to other team members they have added to the client account. Client Management Allows advisors to add team members to a client account. Also allows advisors to maintain notes on the client account and manage any other client relations and contacts.

11

Detailed Planning

Detailed Planning allows you to enter basic or detailed information regarding your client’s assets and financial situation. You can then create proposed and alternative scenarios to model recommendations, as well as potential solutions to financial problems. Detailed Planning allows you to view the results on screen and create powerful printed presentations for your clients. Client Data Provides a complete list of data entry screens for all client information. Client information is grouped in sections that can be expanded and collapsed depending on your view preference. What-if Scenarios Create new ‘What-if Scenarios’ to easily illustrate the effects of proposed planning or compare the effects of multiple planning strategies versus the client’s current situation. Journal The Journal automatically archives all client presentations generated in the software and all ‘What-if Scenarios’ created. Cash Flow Snapshot The Cash Flow Snapshot allows you to see on screen whether the scenario is a success or a failure from a cash flow perspective. It is designed to give you a quick on-screen look at the client’s overall financial situation.

12

Product Views

Generate printed presentations based on the Client Data entered for a myriad of planning areas. The following presentations are available:

• Financial Needs Analysis – capital needs analysis • Financial Strategies – comprehensive analysis • Estate Tax Analysis – comprehensive estate planning • Wealth Distribution Analysis – Cash flow analysis

focusing on Net Worth and Net to Heirs • Qualified Plan Distribution Analysis (QPDA) –

multiple ways of illustrating the effects of qualified plan distributions

13

Detailed Tutorial

My Site

The ‘My Site’ screen is divided into sections that will allow you to create new clients, look at your tasks, update your profile and read company announcements. From My Site you can also access supporting documentation and training resources. My Site is divided into seven sections:

1. Start a New Client File with PlanFacts (4) 2. Clients with Tasks Due (5) 3. My Info (6) 4. Announcements (7) 5. Prospecting Center (8) 6. Training (9) 7. Support Services (10)

14

Start a New Client File with PlanFacts From this section you will be able to access the various PlanFacts fact finders (4). PlanFacts will allow you to quickly capture client information, and instantly create a printed presentation. Note: If you have already created the Client File or have previously used another PlanFacts to enter information for this client, you must use the PlanFacts list on the ‘Client File’ tab. The PlanFacts accessed from Client File automatically recalls the common information entered in other PlanFacts, eliminating re-entry of data.

Clients with Tasks Due This section (5), allows you to see upcoming tasks associated with any of your clients. You can either see the clients who have tasks due today or due within 7 days. (5a) These tasks can be created from the ‘Client File’ tab or can be assigned to you by other account owners. Hover over the client(s) name (5b) to quickly view the task assigned. Click on the client(s) name to jump to that client’s Client File. Note: A task with a red exclamation point (!) next to it is an overdue task.

15

My Info The My Info section (6) allows you to view your name and your address (6a). You will also be able to update your personal information and password by clicking ‘Update My Info’ (6b). You will be able to make changes on the ‘Edit Your Personal Profile’ window (6c) that appears. Note: Your name and address information entered here will appear on the printed presentation you create for your clients.

16

Announcements The home office will use this section of the screen (7) to display announcements, advertisements, important dates, company news, etc. pertinent to their advisors. This space provides the home office a way to communicate with advisors whenever they access the site. Most companies will also display the PlanLab Support contact information (7a) complete with our e-mail address: [email protected]

Prospecting Center The Prospecting Center (8) is designed to give advisors a quick reference to commonly used prospecting materials (8b). Among those frequently used materials will be the paper versions of the PlanFacts fact finders (8a). The paper fact finders allow you to collect information from a client without using the computer. Paper fact finders have the same entries as the electronic PlanFacts versions to make it simple to transfer the data. Note: Paper fact finders are very useful when your clients want to fill out the PlanFacts from their home.

17

Training In the Training section (9), you will find a list of training resources that will help you to master the PlanLab tools. You will be able to select paper tutorials you can print out and read at your leisure. Additionally, you can access overview videos and more focused On Demand Tutorials that walk you through the software while the narrator discusses important points. There may also be links to additional home office or Impact sponsored online training services.

Support Services The Support section (10) will contain links to support resources available to advisors. Here, you see a link to the Support section of Impact’s website http://www.impact-tech.com/support/

18

Clients Screen

The ‘Clients’ tab (2) provides access to your client list. On this screen, you can create new clients and access existing ones.

Creating a New Client If you are entering client information for the first time, you will be able to create a new client by clicking ‘Add Client’ (3).

2

3

19

• The New Client Household window (4) will be displayed.

• Enter Client A’s and B’s personal information (4a &

4b).

• Select check box (4c) if Client A and B are married. Note: This setting cannot be changed after you create the client (i.e. You cannot “un-marry” your clients).

• Enter the name you want to assign to this Client Account (4d).

Note: When you first click on ‘Household Name’ (4d), the Account Name will automatically be displayed as “Last name, First name(s)” (i.e. Smith, John and Mary.)

• Click the ‘Create Client Household’ button (4e) to save information and finalize the creation of a new client, or click the ‘Cancel’ button (4f) to close the window without creating a client.

Note: Client information entered on this screen can be lost if the ‘Create Client Household’ button (4e) is not selected.

4

4a 4b

4c

4d 4e

20

Accessing an Existing Client If you have created clients before, you will see three main tabs after clicking on ‘Clients’:

• ‘My Site’ tab (1) • ‘Clients’ tab (2) • ‘Detailed Planning’ tab (3)

A comprehensive list containing all of your clients will be displayed in box (10). Here you will be able to see the Household Names, the date and time the client information was modified, the name of the client’s primary advisor, and the client’s address information. To search for an existing client, enter all or part of the client’s name (or client’s city or state of residence) in the ‘Look for’ field (4). Then select ‘Client Name’, ‘City’, or ‘State/Province’ from the drop down menu (5). Click ‘Find Now’ (6) to start the search. The results will be displayed in box (10). To start a new search, click ‘Clear’. Once the client you are looking for is visible, you can click on the client’s name.

1 2 3

10

4 5 6

21

Client File

The Client File is an electronic version of the manila folder an advisor typically maintains on a client. By making this folder electronic and online, this client’s information may be shared with other planners to improve collaboration and better serve clients. The Client File is automatically generated by the software any time a PlanFacts fact finder is completed or a New Client is created in Detailed Planning.

Navigation When you select a client from the Clients tab, you will automatically land on the Client File. Once you navigate away from the Client File, click the ‘Client File’ tab (1) to get back. Information contained in the Client File is organized into 4 tabs (2).

1. Dashboard 2. Analysis & Documents 3. Tasks 4. Client Management

Client Account Name (3) The client account name will always be displayed in the top left hand corner of the screen so you always know what client account you are in.

PlanFacts Fact Finders (4) Once you complete a PlanFacts fact finder for a client, all relevant information is shared with the other fact finders. The PlanFacts list on the Client File allows you to access the fact finders with the client data already entered to quickly create client presentations.

1

2 3

4

6

7

5

22

Links and Resources (5) This section will list training and support resource links specifically chosen for this type of client based on business rules established by the home office.

Dashboard The Dashboard provides a quick summary look at who this client is. Contact information and a summary of the client’s financial position (6) provide an advisor with a quick refresh of this client’s basic information. The bottom section on the Dashboard (7) is used to publish additional sales opportunities, training information, fact checking, and other services specific to this client and their financial situation. These alerts, established by the home office, are designed to improve the advisor’s ability to serve this client and uncover additional opportunities.

1

2 3

4

6

7

5

23

Analysis & Documents The Analysis & Documents tab serves as a place to access presentations that have been created for the client and documents that have been given to the advisor from the client.

Document Types • Printed Presentations – displays the most recent version

of each type of presentation you can create for a client. • Client Documents – allows advisor to upload client tax

returns, wills, financial statements, etc. given to the advisor.

Filter Documents The document filter allows the advisor to search by the type of document and sort by date, name, or modified date.

Collaboration Other planners who are granted access to this client file by the client’s advisor will be able to access the presentation history and client documents so that they understand the full client picture.

24

Tasks The Tasks list allows the advisor to be the captain of the planning team. Advisors can assign tasks not only to themselves, but also to other planning team members. Tasks have the following components:

• Task – exactly what the team member must complete • Assign To – which team member is responsible for

completion of the task • Priority – Establish the urgency of the task: High, Medium,

or Low • Status – give team members the ability to keep the advisor

updated on whether or not they have begun working on the task

• % Complete – allow the advisor to know how far along the task is to completion

• Due Date – allow the advisor to establish with the team members when the task must be completed

Note: When a task is assigned to a team member, the task will show up on the “Client Alerts” section of the team member’s My Site.

25

Client Management This tab allows the advisor to manage the planning team for this client.

Notes The Notes section (1) allows anyone on the planning team to post notes specifying changes made in a What-if Scenario, information received from the client regarding planning preferences, questions for other planners, etc.

Client Management “Edit” Button (2) The Edit button opens the Client Management window (3). Here, you can:

• Change the client account name (4). • Set the status of an account to “Inactive” (5), meaning the

account will no longer appear on your Client list. • Change the Primary Advisor on the account (6). • Change the Business Unit of the client account (7). • Use the “Add” and “Remove” (8) buttons to manage the

Team Members on the client account. Note: Team Members will be able to view AND change client information in the account. Team Members will NOT be able to add additional Team Members to the client account. Only the Primary Advisor can add Team Members.

1

2

3 4

5 6

7

8

26

Detailed Planning

Detailed Planning (1) allows you to enter basic or detailed information regarding your client’s assets and financial situation. You can then create proposed and alternative scenarios to model recommendations and potential solutions to financial problems. Finally, it allows you to view the results on screen and create printed presentations for your clients.

Detailed Planning Sections (Quick Overview) After you click on the ‘Detailed Planning’ tab, you will see the following sections:

• The Client Data box (2) provides a complete list of data entry screens for all client information.

• The ‘What-If Scenarios’ button (3) allows you to model

proposed and alternative scenarios for the client without altering the original data.

• The ‘Cash Flow Snapshot’ button (4) allows you to see on

screen whether the scenario was successful or if it failed from a cash flow perspective.

1 2

3

4

27

• The Product View box (5) allows you to analyze your client

information from three different perspectives, called “products views”. For detailed information about product views please refer to page 29.

• In box (6), you will see your client’s name. In addition, you

will be able to select the scenario you want to work with; this is called the Active Scenario. For detailed information about creating and comparing scenarios please refer to page 25.

• In box (7), you will be able to see the fields required for all

Clients and Detailed Planning functions.

5

6

7

28

Client Data The Client Data box provides a complete list of data entry screens for all client information. Client information is grouped in sections that can be expanded and collapsed depending on your view preference. The Client Data box is categorized in ten Client Data Sections (2) available to enter detailed information for a specific client. Each of the Client Data Sections contains ‘Individual Data Items’ (4) that provide specific prompts for entering client data. The Individual Data Items are listed in alphabetical order. The check mark ( ) next to the data items indicates that you have already entered something in the software for that item. The ‘Expand All’ or ‘Collapse All’ tabs (3) allow you to expand or collapse the contents of the Client Data Sections at one time. Click on the folders to the left of each Client Data Section to expand or collapse the content of each Client Data Section. Note: You can also expand or collapse each Client Data Section by double clicking on the name of the section. You can scroll to view all items in the expanded view of the Client Data box (2) by moving the Slide Bar (5).

2 4

3

5

29

What-If Scenarios What-If Scenarios are very important tools for modeling proposed planning recommendations and illustrating hypothetical situations for the client. They allow you to create proposed hypothetical planning scenarios without altering the original data entered in the Current Situation. The Current Situation will be the default scenario for any client data you enter. It should contain all of the client’s current financial information as it existed when they walked in the door to meet with you. Then use the What-if Scenarios to model hypothetical and proposed modifications without worrying about keeping track of changes made to the Current Situation and to easily compare the benefits of your recommendations. When you create a new What-If Scenario, the software automatically copies all the data from the Current Situation (or any other scenario you select to copy) into the new What-if Scenario. Then you simply make changes to the new scenario to illustrate your recommendations for the client. You will actually be able to maintain multiple proposed scenarios for a client without mixing up information from one scenario to the next.

30

Create New Scenario The New Scenario section (2) will be displayed after clicking on the ‘What-if-Scenarios’ button (1). Select the scenario that you want to use to create the new scenario from by using the drop down menu (3). Note: If this is the first scenario you are creating, the Current Situation will be the only option shown. If you have created scenarios for this client in the past, you can choose from all existing scenarios. Enter the name for the new scenario in field (4). Use the notes section to help you remember any comments about the new scenario for future reference in box (5). Click the ‘Create Scenario’ button (6) to create the new scenario.

Delete a Scenario To delete a scenario, select the appropriate scenario from the drop down menu (7) and click the ‘Delete’ button (7a). Note: Once you delete a scenario, it cannot be undone.

2

1

3 4

5

6

7 7a

31

Set Active Scenario You only enter data into one scenario at a time. Data is entered into whichever scenario is selected as the ‘Active Scenario’. By default, when you come into a client account for the first time, the Current Situation will be set as the Active Scenario. Once you create a What-if Scenario, there are two ways to set the new scenario to the Active Scenario:

1. At the top of any data entry screen, select any scenario from the Active Scenario drop down menu (1).

2. On the ‘What-if Scenarios’ screen, go to the ‘Set Active Scenario’ section and from the drop down menu (2a), select the scenario you want to remain active and then click on ‘Select’ (2b).

2a 2b

1

32

Compare Scenarios From the two drop down menus (4a) and (4b), select the scenarios you want to compare and click on the ‘Compare’ button (4c) to continue. After you click on the ‘Compare’ button (4c), the Compare Scenarios window (4d) will be displayed. This window shows the differences between the two scenarios item by item, showing the scenario names and a list of all the differences.

4a 4b 4c

4d

33

Cash Flow Snapshot The Cash Flow Snapshot is designed to give you a quick look at the client’s overall financial situation. Three graphs quickly establish if the scenario is successful or not from a cash flow perspective. The Cash Flow Snapshot can be especially helpful for getting an idea of how the changes and recommendations you made to the scenario would impact the client’s cash flow and overall net worth. After you click on the ‘Cash Flow Snapshot’ button (1), three graphs will be displayed: Financial Success Time Line (2), Summary of Cash Flow Process (3), and Net Worth (4). Note: You can change the Active Scenario at the top of the screen to compare the client’s overall financial situation from one scenario to another.

2

3

4

1

34

Financial Success Time Line Graph When did a cash flow failure occur? The Financial Success Time Line graph (2) illustrates when a cash flow failure will occur given the client’s lifestyle and financial goals. As you enter additional education goals, future purchases, or other specific goals into the software, they will appear as separate bars on the time line. The green areas represent when the expenses and goals are successfully funded through cash flow and the red represents a cash flow failure.

Summary of Cash Flow Process How severe is the problem? The Summary of Cash Flow Process graph (3) illustrates the magnitude of the cash flow failure in each year. The blue represents expenses that are paid out of expected income, the green represents expenses paid by liquidating assets, and the red represents the amount by which the cash flow was short each year.

Net Worth Can your net worth help to solve the problem? The Net Worth graph (4) illustrates the client’s net worth over time, which gives you an idea of what the client’s overall net worth looks like in addition to their cash flow. Note: Some of the client’s financial failures can be solved by using their assets. The Net Worth graph tells you if use of those assets is one of the options you want to model.

2

3

4

1

35

PlanLab Product Views

PlanLab allows you to enter data one time and then view the client information from multiple product perspectives or Product Views. PlanLab offers five Product Views:

1. Financial Needs Analysis (FNA) (1) 2. Financial Strategies (FS) (2) 3. Estate Tax Analysis (ETA) (3) 4. Wealth Distribution Analysis (WDA) (4) 5. Qualified Plan Distribution Analysis (QPDA) (5)

‘Client-Centric’ Approach PlanLab’s design is based on a ‘client-centric’ approach that gives you the ability to enter client data in one place, and then view that data from multiple planning disciplines, such as estate planning, cash flow analysis, etc. One of the major benefits of the ‘client-centric’ approach is that all client information and illustrations are kept together. One set of data is stored for each client’s current situation and is used to analyze any type of planning need for the client through scenarios and other Product Views. You can easily illustrate the effects of proposed planning without altering the basic data for the client and analyze and compare the effects of multiple planning strategies on the client’s current situation. In addition, PlanLab’s ‘client-centric’ approach will allow you to more easily run What-if Scenarios in order to analyze and compare the effects of multiple planning strategies.

1 2 3 4 5

36

Financial Needs Analysis Financial Needs Analysis (FNA) is a concise, sales-oriented presentation covering the capital needs found in a typical middle market client:

• Education • Retirement • Life Insurance • Disability • Long-Term Care

Each need is covered on one to two pages that can be backed up by optional detailed ledgers. After you click on the ‘Financial Needs Analysis’ button (1), you will be able to:

• Define the assumptions you want to illustrate in your estate analysis. Enter the required information in section (2). FNA allows you to define the assumptions you want to illustrate regarding the years to calculate and specific assumptions to be used in the event of a hypothetical death or disability.

• Access the ‘Analysis’ buttons (3). For detailed information

about the ‘Analysis’ buttons and Financial Needs Analysis, please refer to the next page.

1

2

3

37

Analysis Buttons: View/Print The ‘Print Preview…’ button (1) will display the Select Desired Report Sections window (1a). The Select Desired Report Sections window (1a) will allow you to select the presentation pages for the analysis. The ‘View/Print Draft’ button (1b) allows you to create a ‘Draft Version’ of the presentation. The Draft Version will print more quickly with lower resolution graphics and will have a footnote that says it is not to be used with the client. The Draft Version allows the advisor to preview the presentation just as it would appear to the client without producing a presentation that will be archived in the Journal. The ‘View/Print Client Version’ button (1c) produces a final presentation ready to be shown to your clients. The button will generate the report with high resolution graphics and will display the report on screen in PDF format. If you want to print a hard copy of the report, you must select the printer icon in the Adobe Reader window.

1a

1b 1c

38

Analysis Buttons: Ledgers/Charts The ledgers contain a collection of Financial Needs Analysis calculations of the active scenario (shown in parenthesis behind the Client Account name). The ‘Ledgers/Charts…’ button (2) will display a window (2a) in which you can select the ledger you want to generate. The following items will be available on the ledger list:

• Super Ledger – Creates a cash flow report for the number of years you are illustrating. The report includes year by year values for incoming cash flow items, outgoing payment items, and adjustments for cash flows. It also illustrates year by year values for assets, liabilities, and net worth.

After selecting a ledger or flowchart, click the ‘Go’ button (2b). Ledgers will be generated on screen in PDF format. If you want to print a hard copy of the ledger, you must select the print icon in the Adobe Reader window. The ‘Close’ button (2c) allows you to come back to the Detailed Planning screen without generating a report.

2a 2c 2b

39

Financial Strategies Financial Strategies (FS) is a comprehensive planning analysis presentation with a fee-based, product neutral, “analysis” look and feel. Financial Strategies is perfect for fee-based advisors or those looking for broader planning capabilities than FNA can offer. Financial Strategies allows advisors to illustrate more complex topics such as:

• Stock option analysis • Estate planning • Monte Carlo Simulation • Scenario comparisons • Much, much more…

After you click on the ‘Financial Strategies” button (1), you will be able to:

• Define the assumptions you want to illustrate in your estate analysis. Enter the required information in section (2). FS allows you to define the assumptions you want to illustrate regarding the years to calculate and specific assumptions to be used in the event of a hypothetical death or disability.


about the ‘Analysis’ buttons and Financial Strategies, please refer to the next page.

1

2

3

40


1a

1b 1c

41

Analysis Buttons: Ledgers/Charts The ledgers contain a collection of Financial Strategies calculations of the active scenario (shown in parenthesis behind the Client Account name). The ‘Ledgers/Charts…’ button (2) will display a window (2a) in which you can select the ledger you want to generate. The following items will be available on the ledger list:

• Super Ledger – Creates a cash flow report for the number of years you are illustrating. The report includes year by year values for incoming cash flow items, outgoing payment items, and adjustments for cash flows. It also illustrates year by year values for assets, liabilities, and net worth.


2a 2c 2b

42

Estate Tax Analysis Estate Tax Analysis (ETA) offers the flexibility to illustrate a multitude of estate planning techniques and delivers their recommendations in a powerful presentation designed to motivate clients to take action today. After you click on the ‘Estate Tax Analysis’ button (1), you will be able to:

• Define the assumptions you want to illustrate in your estate analysis. Enter the required information in section (2). ETA allows you to define the assumptions you want to illustrate regarding the first client to die, the year of the death, and the cost of funding alternatives.

• Set which scenario you want illustrated as the Proposed Plan. The Current Plan will always be the Current Situation Scenario, but the Proposed Plan will be determined by the Active Scenario set in the software.

Note: If a proposed new life insurance policy is added to the proposed scenario, the ETA output will automatically create two proposed plans. The “Proposed Plan” will include all the information entered in your proposed scenario but will NOT illustrate the new proposed life insurance. The “Proposed Plan with New Life Insurance” will include all the information entered in your proposed scenario WITH the new proposed life insurance.

• Access the ‘Analysis’ buttons (3). For detailed information about the ‘Analysis’ buttons and Estate Tax Analysis, please refer to the next page.

1

2

3

43

Analysis Buttons: View/Print The ‘Print Preview…’ button (1) will display the Select Desired Report Sections window (1a). The Select Desired Report Sections window (1a) will allow you to select the presentation pages for the Current Plan, Proposed Plan, Proposed Plan with New Life Insurance, resource pages, supporting details, graphs, ledgers, and print options that you wish to use in your reports. The ‘View/Print Draft’ button (1b) allows you to create a ‘Draft Version’ of the presentation. The Draft Version will print more quickly with lower resolution graphics and will have a footnote that says it is not to be used with the client. The Draft Version allows the advisor to preview the presentation just as it would appear to the client without producing a presentation that will be archived in the Journal. The ‘View/Print Client Version’ button (1c) produces a final presentation ready to be shown to your clients. The button will generate the report with high resolution graphics and will display the report on screen in PDF format. If you want to print a hard copy of the report, you must select the printer icon in the Adobe Reader window.

1a

1b 1c

44

Analysis Buttons: Ledgers/Charts The ledgers contain a collection of Estate Tax Analysis calculations of the active scenario (shown in parenthesis behind the Client Account name). The ‘Ledgers/Charts…’ button (2) will display a window (2a) in which you can select the ledger you want to generate. The following items will be available on the ledger list:

• Current Planning Flowchart – Graphically illustrates how estate values flow at both the first and second death so the client can easily see the effects of their estate planning in terms of transfer costs and net distributions to heirs. Assumes the client and spouse die in the years entered on the ETA Assumptions screen.

• Current Planning Flowchart (Today) - Graphically illustrates

how estate values flow at both the first and second death so the client can easily see the effects of their estate planning in terms of transfer costs and net distributions to heirs. Assumes the client and spouse both die today.

45

• Estate Tax Analysis Ledger - Illustrates in ledger format

estate values at both the first and second death. This is a great reference for advisors to see exactly how the estate is being paid out. Assumes the client and spouse die in the years entered on the ETA Assumptions screen.

• Super Ledger – Creates a cash flow report for the number

of years you are illustrating. The report includes year by year values for incoming cash flow items, outgoing payment items, and adjustments for cash flows. It also illustrates year by year values for assets, liabilities, and net worth.

Note: If a scenario other than the Current Situation is selected as the active scenario, this list will also include the above options for each scenario. Remember, if you create a scenario with a proposed life insurance policy, ETA will automatically use the Current Situation as the Current Plan, the scenario minus the proposed life insurance as the Proposed Plan, and the scenario with the proposed life insurance included as the Proposed Plan with New Life Insurance. After selecting a ledger or flowchart, click the ‘Go’ button (2b). Ledgers will be generated on screen in PDF format. If you want to print a hard copy of the ledger, you must select the print icon in the Adobe Reader window. The ‘Close’ button (2c) allows you to come back to the Detailed Planning screen without generating a report.

46

Wealth Distribution Analysis Wealth Distribution Analysis shows the total consequences of a client’s current or proposed plan. You can examine year-by-year cash flows and the effects of the planning on net worth, lifestyle, and net to heirs. Wealth Distribution Analysis addresses the primary financial want of most wealthy people—adequate income for the rest of their lives. After you click on the ‘Wealth Distribution’ button (1), you will be able to:

• Define the assumptions you will use to generate your analysis. Enter the required information in box (2). WDA allows you to define the assumptions you want to illustrate regarding first client to die and the number of years to calculate.

• Set which scenario you want illustrated as the Proposed

Plan. The Current Plan will always be the Current Situation Scenario, but the Proposed Plan will be determined by the Active Scenario set in the software.


about the ‘Analysis’ buttons and Wealth Distribution Analysis please refer to the next page.

Note: If a proposed new life insurance policy is added to the proposed scenario, the WDA output will automatically create two proposed plans. The “Proposed Plan” will include all the information entered in your proposed scenario but will NOT illustrate the new proposed life insurance. The “Proposed Plan with New Life Insurance” will include all the information entered in your proposed scenario WITH the new proposed life insurance.

1

2

3

47

Analysis Buttons: View/Print The ‘Print Preview…’ button (1) will display the Select Desired Report Sections window (1a). The Select Desired Report Sections window (1a) will allow you to select the presentation pages for the Current Plan, Proposed Plan, Proposed Plan with New Life Insurance, resource pages, supporting details, graphs, ledgers, and print options that you wish to use in your reports. The ‘View/Print Draft’ button (1b) allows you to create a ‘Draft Version’ of the presentation. The Draft Version will print more quickly with lower resolution graphics and will have a footnote that says it is not to be used with the client. The Draft Version allows the advisor to preview the presentation just as it would appear to the client without producing a presentation that will be archived in the Journal. The ‘View/Print Client Version’ button (1c) produces a final presentation ready to be shown to your clients. The button will generate the report with high resolution graphics and will display the report on screen in PDF format. If you want to print a hard copy of the report, you must select the printer icon in the Adobe Reader window.

1a

1b 1c

48

Analysis Buttons: Ledgers/Charts The ledgers contain a collection of Wealth Distribution Analysis calculations of the active scenario (shown in parenthesis behind the Client Account name). The ‘Ledgers/Charts…’ button (2) will display a window (2a) in which you can select the ledger you want to generate. The following items will be available on the ledger list:

• Cash Flow Analysis – Illustrates year by year values for the major components of the cash flow analysis in the same terminology used in the Wealth Distribution Analysis printed presentation.

• Planning Impact – Graphically illustrates the total

consequences of the plan by comparing the client’s net worth, living expenses and net distributions to heirs.

49

• Super Ledger – Creates a cash flow report for the number

of years you are illustrating. The report includes year by year values for incoming cash flow items, outgoing payment items, and adjustments for cash flows. It also illustrates year by year values for assets, liabilities, and net worth.

Note: If a scenario other than the Current Situation is selected as the active scenario, this list will also include the above options for each scenario. Remember, if you create a scenario with a proposed life insurance policy, WDA will automatically use the Current Situation as the Current Plan, the scenario minus the proposed life insurance as the Proposed Plan and the scenario with the proposed life insurance included as the Proposed Plan with New Life Insurance. After selecting a ledger or flowchart, click the ‘Go’ button (2b). Ledgers will be generated on screen in PDF format. If you want to print a hard copy of the ledger, you must select the print icon in the Adobe Reader window. The ‘Close’ button (2c) allows you to come back to the Detailed Planning screen without generating a report.

50

QPDA Qualified Plan Distribution Analysis (QPDA) helps you explore various ways of distributing qualified plans in order to maximize the plans’ values for retirement and wealth transfer purposes. QPDA illustrates the effects of distributions on plan values and estate values with concepts like the multi-generational or “Stretch” IRA, repositioning distributions for life insurance, or simply calculating RMD or 72(t) distributions. Qualified Plan Distribution Analysis (QPDA), as in the other PlanLab Product Views, allows you to determine the best planning approach and gives experienced professionals added design flexibility. After you click on the ‘QPDA’ button (1), you will be able to:

• Define the assumptions you will use to generate your analysis. Enter the required information in section (2). QPDA allows you to define the assumptions you want to illustrate regarding the retirement plan information, the use of life insurance, the use of gifts and/or expenses, and distribution information.


about the ‘Analysis’ buttons and Qualified Plan Distribution Analysis please refer to the next page.

•

1

2

3

51


1a

1b 1c

52

Analysis Buttons: Ledgers/Charts The ledgers contain a collection of Qualified Plan Distribution Analysis (QPDA) calculations of the active scenario (shown in parenthesis behind the Client Account name). The ‘Ledgers/Charts…’ button (2) will display a window (2a) in which you can select the ledger you want to generate. The following items will be available on the ledger list:

• Early Distributions – Ledger compares distribution amounts for the three Early Distribution Safe Harbor 72(t) methods (Life Expectancy, Amortization, and Annuity methods).

• Lump Sum vs. IRA Rollover - Ledger compares plan values

and taxes for a lump sum distribution versus an IRA rollover.

• Lump Sum vs. IRA Rollover (Graphs) – Graphical

comparison of plan values and taxes for a lump sum distribution versus an IRA rollover.

• Plan Distribution Ledger – Illustrates year by year values of

distribution amounts, desired spending (in the form of living expenses, gifts, or life insurance premiums), and taxes to see their effects on the qualified plan value and the value of all the other assets in the estate.

53

• Qualified Plan Values Ledger – Illustrates year by year

values of the qualified plan value and its distribution amounts.

• Retirement Plan Distributions - Illustrates year by year

values of distribution amounts, desired spending (in the form of living expenses, gifts, or life insurance premiums), and taxes to see their effects on the value of all the other assets in the estate.

• Stretching Out IRA Distributions – Flowchart graphically

illustrates the traditional IRA rollover method versus stretching the IRA to non-spouse beneficiaries. Illustrates not only the method, but also summary values for each method, including the total amount to the heirs.

• Using Distributions for New Life Insurance – Dynamic page

compares, in ledger form, the total estate and net to heirs value for the qualified plan with and without the proposed life insurance policy. This page also illustrates a graph summarizing the comparison.


54

Thank You This completes the PlanLab Tutorial. For more detailed information concerning the content found in this tutorial, please consult the other tutorials available online. If you need additional support, have questions, or would like to provide feedback, please contact our Customer Support Department at (800)-438-6017 Ext 2.