Plan Settings and Default Assumptions - US

Plan Settings (Default Assumptions)

It is in the Plan Settings that you can view and edit the software’s default assumptions about things such as the growth rates for savings and investments, inflation rate, the future growth of earnings (National Average Earnings) and property growth rates (Property Growth/Depreciation Rate). Furthermore, the Default Tax Table Assumption determines the rate at which the tax bands increase beyond the known.

To access these settings, click Plan Settings, the bottom-most link on the Dashboard.

 

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Plan Settings Set the Software’s Default Assumptions

Although preferences provide the defaults, many of these settings, including growth and inflation rates, can still be modified for items individually, within the plan.

Expenses, for example, are grown using a default Inflation Rate, which is taken initially from the Plan Preferences.

 

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If an individual expense needs to be inflated at a rate higher or lower than this general default, then simply change this Inflation Rate setting as you enter or edit the expense. Once edited at the item level, the default inflation rate will be overwritten for that expense and will remain so, even if you were to change the overall default inflation rate for the plan.

 

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You can, however, easily revert the expense back to the default Inflation Rate, as it is set in the Plan Settings, by clicking the Use Defaults button to the right of the Inflation Rate, as shown right.

 

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Some Settings Are Not Shown in the Plan Settings

Plan Settings apply only to the client case at hand and can be changed, if necessary, on a per-scenario basis. The same rules of inheritance from the Base Plan apply.

How can I Customize My Assumptions to Replace the Voyant Defaults? 

If subscribed to our White Label service a firm can provide a set of default assumptions that will show as the initial default Plan Settings, provided they haven’t been edited at some point by the adviser. For more information on our White Label service please contact support@planwithvoyant.com 

Tip - Consider Plan Settings as you Get Started

It is quite likely that some of the software’s initial default assumptions will differ from the position you would choose to take. Voyant is not a data provider. In fact, other than its tax calculations and coded rules for pensions and products, the software is designed to be data agnostic. Apart from the default market assumptions, which in our standard release of the software you might think of these default assumptions merely as placeholders to get you started with the software.

We encourage you and your firm to review and update these assumptions to values that you consider reasonable and justifiable. The Plan Settings are a good place to begin as you start using Voyant as these assumptions will act as the foundation for your plans. But, if you would like to add your own set of default assumptions this can be done through our White Label Service. We can provide more information on this subject if you contact support@planwithvoyant.com