Planit:Create Scenario

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In this Video you will Learn...
How do I create a separate planning scenario for my client's finances, like working longer, or moving to a smaller home?
• Planning Assumptions, add scenario
• Data entry scenario description
• Changing data in active scenario

Keep on Track! Continue training on...
Life Planning Integrated Planning
Planning Assumptions Screen

Other Related Topics
Active Scenario Multiple Scenarios Death Scenario
Disability Scenario Introduction to the Planning Assumptions Screen (Canada) Introduction to the Planning Assumptions Screen (Malaysia)


The material in this video may differ somewhat from what you see on your site due to difference in version, jurisdiction, corporate content or access level. Regardless of these differences most of the core functions are consistent across all sites, so you'll be able to benefit by and large from what you learn in this video.


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Steps on How to Create Multiple Scenarios to Illustrate Specific Situations

STEP #1: After you have finished entering your client data using the Life Planning or Integrated Planning process flow, you’ll still run a “Current Situation” analysis to find out if your client has any shortfalls that need to be addressed. This can be done on “Results” tab of the Modelling Assumptions screen (formerly called the Auto Model Screen), or by running any of the life planning reports from the "Your Working Documents" screen. You must run a modeled scenario in order to move onto the next step

STEP #2: At this point you now can create your first manually created scenario. To do this you will go to the Planning Assumptions screen. On this screen you will now see a new tab called "Active Scenario”. If you have ran the Auto Model scenario, it will be set as the default and as seen in the screen shot below and will display the revised assumptions that the auto model created. . . . such as working longer. To create a totally new scenario you click on the “Create Scenario” button.

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You’ll then be presented with a pop up screen where you’ll identify the base scenario you want to use for this new scenario. At this point you’ll select the Current Scenario as your base case and then provide a name for your new scenario. Try to use a description that references the key changes you are going to illustrate. Such as “Work 1 Year Longer” or “Save $10,000 More per Year”. Once you have entered your description click on “Save”.

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Also note that when you create a scenario, you’ll be presented with a “Notes” field. In this field you can be more detailed about the various changes you have made in this scenario. So the Scenario Name can highlight the key difference, but in the notes field you can be very detailed and explanatory in what’s been modelled. This notes field will be included in the scenario reports you generate so you are aided in remembering all of the changes that this specific scenario is based on.


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You can create an unlimited number of different scenarios and you can create these scenarios using any previously created scenarios as your base case. So you could use the Current or the Auto Modelled scenario, if you ran one as your base. Or you could even use one of your manually created scenarios as your base case. This allows you to layer several different new assumptions into a scenario by merely selecting that last saved scenario such as “Work 1 Year Longer” and then add a second assumption and use a description such as “Work 1 Year Longer and Save More”.

Please note that each scenario you create is a point in time copy so this means is that once you create a copy, that data will not be impacted by any other changes you make to the current situation planning assumptions, revenues, goals and savings. The only data that will dynamically change for all scenarios is the client’s Assets and Liabilities. As the client’s investment portfolios go up and down every day with pricing updates, all of the copied scenarios use the up to date asset values in all projections. This means you don’t have to worry if you start a plan on Monday and get distracted and don’t finish it till Friday. The changing values of the assets will be dynamically recognized in all scenarios.

If you have created a copied scenario and then realize your base case was not correct, you would merely delete the copied scenario and create a new copy.

Once you have created a scenario it’s set as your “Active Scenario”. As you go through the various screens you’ll stay on this “Active Scenario” until you change to a different one. You can now start to make changes.

Step #3 (Planning Assumptions): The first place where you can make changes is on the Planning Assumptions Screen. This is where you can modify the target retirement age for the clients, modify their mortality assumption or change the inflation assumption. You can modify one, all or none of these assumptions for your active scenario.

Step #4 (Pensions and Other Revenues Screen): When you come into the Pensions and Other Revenues Screen, you’ll see that the tab that used to be called “Auto Model” is now called “Active Scenario”. That’s because this tab can be used for either the auto model or any other scenario you have created. When you first go to the “Active Scenario” tab, you'll be sitting on your “Active Scenario” you last chose. In this example, that’s “Scenario 1”.

At this point you can now can add some additional revenues, remove some that were in your base case or do nothing if you don’t want to change anything that relates to revenues. Also note that if you have changed the target retirement age on the Planning Assumptions screen, for this scenario the system will have already adjusted the end year for John and Janice’s salaries, adjusted the start year for any defined benefit pension that is set to start at retirement. In the example below, we added a new revenue stream called “Inheritance”.

Another benefit of multi scenarios is that on a copied scenario you can now stop and start your salaries. Many of our users have asked for this feature and now with the multi scenarios you have more flexibility to modify the salaries over the client’s lifetimes.

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Step #5 (Goals & Objectives Screen): On the Goals and Objectives screen, you can make a variety of different changes in your Active Scenario. For example, you can add new goals, delete goals, increase or reduce the retirement lifestyle. Or even change the Current Lifestyle. In this example you’ll see that we have added a new goal called “Buy Retirement Boat”.


Multi5.jpg

Step #6 (Savings Screen): On the Savings screen, you’ll select the “Active Scenario” tab and see that you can edit or delete existing savings. You can also add in new savings that your client’s are willing to save in order to meet there goals and objectives. In the case below we have added an additional savings and also some education savings that the clients are not currently doing.

Multi6.jpg

Step #7 (Modelling Assumptions Screen): When you go to the Modelling Assumptions screen you’ll see you can calculate any of the available scenarios. The one called “Active Scenario” will allow you to see the results for your manually created scenario. In this example we are running the Scenario 1 from the drop down list.

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If you are not satisfied by the results you can go back to various different screens for more modifications or you can create another scenario based on this one then make the changes to the newly scenario.

Step # 8 (Running Reports from the Working Documents Screen): You now can run scenario reports from the working documents screen. You have the option to run either the following two reports:

  • Long Term Cash Flow - Active Scenario
  • Life Goals Summary - Active Scenario

These are both found under the Life Planning Audit Reports section.

NOTE: At this time the Personal Financial Strategy only uses the Auto Model scenario which the software creates. In a future release you will be able to choose the scenario of your choice to be included in the document. So at the present time you’ll use the free standing Active Scenario reports to communicate the results of your manually created strategy to the client.