Lump Sum Savings Insight

The Lump Sum need analyser determines the additional lump sum cash inflow that would be needed at any given point in the timeline (lump sum timing event) in order to prevent any future shortfalls from occurring thereafter in the plan.


What Does the Software Assume is Done with the Lump Sum Inflow? 

When run, the lump sum inflow is used to pay expenses and any remainder is deposited into the primary client's default cash account (e.g. John's Cash) and drawn upon in subsequent years of the plan, following the end event, as a primary source for expense payments.  If the primary client is deceased by the selected goal event, funds will instead be deposited into the surviving spouse or partner's default cash account.

Double click on a bar in the insight to view chart details. The default cash account is found on the Investments screen of this detailed view under e.g. John's Cash. The lump sum deposit to this account will be grown using the default growth rate on cash. This growth rate is set from Dashboard view > Plan Settings > Inflation / Growth Rates > Savings Growth Rate. The default fees, deducted from this default growth rate, are also set in Plan Settings on the Fees & Taxation panel.