Need Analyser, Savings - Using the savings need analyser to find the average amount that may be available to gift or spend

Provided that you clients have no shortfalls in their projected cash flow, you can run an annual savings need analysis to determine how much they could spend or gift on average, annually. To get an average of what could be spent over the course of the entire timeline, select Mortality as the target event. The analyser should produce a negative result indicating what on average could be spent or gifted per annum.

Using the savings need analyser to find the average amount that may be available to gift or spend

The Savings Need Analysis can also be used to determine the amount per annum your client could spend or gift, provided the plan has no shortfalls.

The Annual Savings Need Analyser works differently when dealing with annual gifting / spending. It tests the entire timeline for any shortfalls. There is no concept of excluding a shortfall but continuing to gift/spend. The plan must have no shortfalls for potential gifting/spending to be considered in the analysis.

If no shortfalls are present, the analyser will begin building a recurring annual expense for a timespan set between the plan's start the projected goal event. This expense has no inflation rate. It is a flat expense. The analyser then report as a negative result the amount per annum that should use all of the plan's available liquid assets without incurring a shortfall.