Transcript
In this video, we’re going to focus on the Annual Savings Insight.
Identifying the Shortfall
In this plan, there is a shortfall starting at age 80—meaning there aren’t enough liquid assets or income to cover expenses.
However, during Julia’s pre-retirement years, there is surplus income available.
By default, Voyant assumes regular employment surplus income is spent rather than saved. (This assumption does not apply to all types of surplus income—only employment income.)
Using the Annual Savings Insight
To address the shortfall, let’s open the Annual Savings Insight. This tool calculates how much Julia would need to save each year, from the start of the plan until retirement, in order to eliminate the red shortfall and run her assets to zero at the end of her plan.
In this case, Julia needs to save about $10,000 per year.
Important note: the insight does not account for affordability—it simply shows the required amount.
Looking at Julia’s surplus income, we can see she does have enough to cover this contribution.
Investment Growth Assumptions
The insight assumes contributions are saved into an investment account, where they will grow at the plan’s investment growth rate.
To check this:
In the insight, go to Year View → Investments.
You’ll see a Need Analysis account with the annual contributions.
Growth is based on the plan settings.
In this example: 6% growth, 0.5% fees → 5.5% net growth.
Creating a What-If Scenario
You can model this in a What-If plan by creating an investment account contribution:
Go to the chosen investment account.
Add a $10,000 annual contribution.
Set timing from Plan Start → Retirement.
Use the same growth assumption (6% in this case).
Once saved, the shortfall disappears, and the assets run out right at the end of the plan.
Verifying Contributions
To double-check:
Go to Year View → Investments.
Confirm the $10,000 contribution is being made each year.
If a contribution isn’t made, it may mean there wasn’t enough surplus income available for that year.
Recap
In this video, we:
Identified Julia’s shortfall beginning at age 80.
Used the Annual Savings Insight to calculate how much she needs to save annually.
Reviewed how the tool assumes funds are invested and grow at plan settings rates.
Created a What-If scenario to model contributions into an investment account.
Verified contributions year by year to ensure the plan works as intended.
With these steps, Julia’s plan eliminates the shortfall and fully utilizes her assets over the course of her life.
Thank you for listening.