Goal Based Planning
Goal Based Planning or Modular Planning is an effective way to look at individual needs for a client and calculate any shortfalls that may result. Web Advisor includes a series of modular needs calculators. See the sample reports from the Retirement Goal Calculator attached. Use of Capital -
In the Goal Calculators an advisor can recognize situations where an account is going to be used to fund more than one goal. As can be seen above, there is a column to define the percentage of each account that will be used to fund the goal currently being analyzed. For example, if 25% one particular account is going to be used to fund an education goal and 75% is going to be used to fund retirement, then you can enter the appropriate percentage and the analysis will only allocate that portion of the money in that account for that goal. This allows the advisor to recognize the client’s priorities in how goals will be funded and also prevent the common error that is often made where money is spent twice to fund two different goals. This also allows the advisor to recognize the overall hierarchy and ranking of the client’s goals.
More advanced forms of planning include:
- Life Goals Planning - looks at multiple goals concurrently
- Integrated Planning - looks at the cross impact of various goals and issues like accumulation versus insurance premiums.
Calculators in PlanPlus Planit
Here are some of the goal based calculators found in PlanPlus Planit