In addition to the “Loss Capacity Report”, which is currently available, we are adding several other reports to accompany the Insights (simulations) in AdviserGo, including reports for the Annual Savings, Investment Returns, Life Insurance Needs, Lump Sum Savings and Retirement spending insights.
If you first run a simulation on the Insights screen, the software will use those same parameters to generate the simulation's Insight report. If no Insight was run, the simulation's initial defaults will be used when generating the report.
Below is a list of the insight reports now available in AdviserGo.
The Loss Capacity insight is a simulation which determines how much a plan can lose from investments and pensions at a specific event while still achieving plan objectives.
The Annual Savings insight calculates the amount of additional savings needed, above any savings and investments currently planned, to prevent any projected shortfalls on or after a specified target event, which in most cases will be retirement.
The Investment Returns insight calculates the minimum average rate of return, net of fees, needed to ensure that no shortfalls occur during the planning timeline.
Life Insurance Needs
The Life Insurance Need Analysis is used to calculate the lump sum amount required to eliminate any expense shortfall that may occur in a plan following the death of either the primary client and the client’s spouse or partner. It is intended to show as a figure any life insurance coverage shortfall a person may have at a given point on the planning timeline, in order to evaluate how much additional cover that person may want to consider.
The Lump Sum need analyzer determines the additional lump sum cash inflow that would be needed at any given point along the timeline (the 'lump sum timing event') in order to prevent any future shortfalls from occurring thereafter in the plan.
The Retirement Spending insight is designed to show clients the maximum they could spend on average, once in retirement, to spend down their available liquid assets to near zero by the end of the plan. This average is exclusive of illiquid assets (usually properties) and accounts that have been ring-fenced – those excluded from being a potential payment source due to withdrawal limits.