Transcript:
In this training, I’ll walk you through how to model a client transitioning to part-time employment in Voyant.
This can be useful when you want to reflect a reduction in employment income while still maintaining accurate cash flow projections throughout the client’s plan.
We’ll start by opening the client’s existing income entry.
Inside the income, navigate to the Steps section.
Steps allow you to model changes to an income stream over time, such as salary increases, decreases, or a transition to part-time work.
To create the transition, click Add Step.
For this example, we’re going to reduce the income to 50% of its current value while keeping the annual growth rate at 3%.
Next, we’ll set the timing for when this change should occur.
Let’s say the client plans to transition to part-time work at age 60.
To create the timing event, double-click in the gray area of the timeline. Then give the step a descriptive name, such as “Transition to Part-Time.”
This creates a structured income timeline within the plan:
- Prior to age 60, the income continues at 100% with 3% annual growth.
- Beginning at age 60, the income is reduced to 50% while continuing to grow at 3% annually.
- At full retirement, for example age 65, the employment income will leave the plan entirely.
Once the timing and values are configured, click Done, and then click Done again to save the changes.
Now we can review the impact in the dashboard cash flow chart.
You should see the year before the transition showing the full employment income amount. Then, in the year the step occurs, the income drops to the reduced value while continuing to grow according to the defined growth rate.
You can also review this more closely in the Year View, where you’ll be able to see the gradual growth of the income, the reduction when the step occurs, and eventually the retirement of the income stream from the plan.
By using Steps, you can accurately model part-time work or other employment income transitions in your client’s plan. This helps ensure that cash flow projections remain realistic and aligned with the client’s expected career changes.
If you have any questions or need assistance, you can always reach out to our support team.
Simply click your client’s name in the top-right corner, select Request Support, enter your question, and share client access so our team can assist you.
Thanks for listening!