Voyant automatically calculates how income and available assets can be used to meet expenses throughout the plan.
When annual income is insufficient to cover planned expenses and taxes, Voyant can automatically withdraw funds from available liquid assets to cover the shortfall. These are known as ad hoc withdrawals and occur as needed, provided the accounts are accessible and no withdrawal limits prevent the funds from being used.
What Assets Are Available for Ad Hoc Withdrawals?
Depending on the account type, availability, and applicable withdrawal restrictions, Voyant may use the following assets to supplement income:
- Cash Accounts: Savings, current accounts, and other accessible cash balances.
- Investments: Accessible investment accounts that can be liquidated to meet expenses.
- Pensions and Retirement Accounts: Eligible pension or retirement funds, including superannuation accounts in Australia, subject to applicable access rules, withdrawal restrictions, and tax treatment.
Important: Available cash and income are generally used before Voyant accesses additional assets according to the Liquidation Order configured in Plan Settings.
Using Tangible Assets
Tangible assets, such as investment properties or other assets entered on the Property/Assets screen, may also be made available for automatic liquidation when additional funds are required.
To enable this:
- Navigate to the asset's Advanced Settings.
- Locate the Liquidation setting.
- Select When Needed.
This allows Voyant to consider the asset for liquidation if additional funds are required to meet expenses.
Best Practice: We generally recommend planning the sale of property and other significant assets explicitly rather than allowing automatic liquidation. These transactions often require consideration of timing, market conditions, and potential tax implications. A primary residence is not typically available for automatic ad hoc liquidation.
Certain account types may be excluded from automatic withdrawals because of specific access restrictions, tax treatments, or product rules.
Ad Hoc vs. Planned Withdrawals
Voyant distinguishes between withdrawals that are intentionally scheduled and those generated automatically to meet cash flow needs.
- Planned Withdrawals: Withdrawals specifically scheduled within the plan, such as a lump-sum withdrawal or a regular retirement income payment.
- Ad Hoc Withdrawals: Additional withdrawals calculated automatically when available income and cash are insufficient to meet expenses.
Identifying Withdrawals in the Cash Flow Chart
To review these withdrawals:
- Navigate to the Cash Flow chart.
- Select Details in the upper-right corner.
- Review the colour-coded withdrawal categories.
Planned and ad hoc withdrawals are displayed in different colours, allowing you to distinguish scheduled withdrawals from those automatically generated by Voyant.
Understanding the Need Line
As clients transition into retirement, they may rely more heavily on accumulated savings, investments, and accessible retirement assets to meet their expenses.
In the Cash Flow chart, you may notice that withdrawals from these accounts increase to meet the black Need Line.
The Need Line represents the total funding requirements for that year, including:
- Planned expenditures
- Taxes
- Planned savings and investment contributions
When annual income alone is insufficient, Voyant can automatically supplement it with withdrawals from eligible liquid assets to meet these needs.
These additional withdrawals are considered ad hoc withdrawals, reflecting how Voyant uses available resources to fund the client's projected cash flow.
Reviewing Withdrawal Details
For a more detailed breakdown of withdrawals in a particular year:
- Double-click the corresponding bar or year in the Cash Flow chart, or select Year View in the upper-right corner.
- Navigate to the Investments or Pensions tab.
- Review the Withdrawals column to identify withdrawals and applicable withdrawal limits.
- Select an individual account name to view additional information.
This provides greater visibility into how each account contributes to the plan's annual funding requirements.
Controlling Automatic Withdrawals
If you want to influence which accounts Voyant accesses when additional funds are required, you can adjust the following settings:
Liquidation Order — Plan Settings
Determines the order in which eligible assets are accessed when income and available cash are insufficient to meet expenses.
Withdrawal Limits — Individual Accounts
Allows you to restrict the amount available for automatic withdrawals or prevent an account from being accessed automatically.
Key Takeaway: Voyant is designed to automatically fund projected expenses using available income, cash, and eligible liquid assets. By managing the Liquidation Order, Withdrawal Limits, and planned withdrawals, you can control how assets are used throughout the client's financial plan.