In this video, we will walk you through how to adjust the growth rates for the investment accounts in your client's plan once they reach retirement.
Transcript:
In today's training, I'm going to show you how to adjust the growth rates on your investment accounts for the retirement phase of a financial plan.
We'll start with the IRA in this example.
I'll open the IRA and navigate to the Growth tab. Here, you can see that the account is currently assigned to a Moderate portfolio.
If I'd like this investment to move into a more conservative portfolio once the client retires, I'll use Steps to make that change.
First, I'll go to the Steps section and click Add Step. Next, I'll choose the Growth tab and enable it for this step.
Because I'm using portfolios in this plan, I can simply use the slider to select a different portfolio allocation. In this example, I'll change the investment from Moderate to Conservative.
Now I'll set the timing for the step. I'll choose Chelsea's Retirement as the event that triggers this change, then click Done.
When Chelsea reaches retirement, the account will automatically begin using the Conservative portfolio.
Next, let's make a similar change to her 401(k).
I'll open the account and go to the Growth tab. In this case, the account is using an individual growth rate of 7% rather than a portfolio.
Again, I'll go to Steps, select Add Step, choose the Growth tab, and enable it.
This time, instead of selecting a portfolio, I'll change the growth rate from 7% to 5%.
I'll set the timing so this change also occurs at Chelsea's Retirement, then click Done to save it.
Now let's verify that both changes are working as expected.
I'll open Year View and navigate to the year just before retirement.
Looking at the Investments section, we can see the current net growth rates for both the 401(k) and the IRA.
As I move forward into Chelsea's retirement year, you'll notice that the growth assumptions change.
The IRA now reflects the more conservative portfolio allocation, while the 401(k) is using the new 5% growth rate.
Keep in mind that the values shown in Year View represent net growth after fees, so the percentages displayed may be slightly lower than the growth rates entered on the account.
I hope you found this helpful.
If you have any questions or need assistance, click your client's name in the upper-right corner of the screen and select Request Support.
Thanks for watching!