This video provides a demonstration of how to model windfalls such as an inheritance or large one off inflows coming into a client's Voyant plan. It demonstrates how to use a Windfall to pay down debts and how to transfer a windfall into an investment account.
Transcript
In this video, we will be discussing how to model a large windfall coming into a client's account. This, for example, could include an inheritance.
The first thing I want to show you is how to add the windfall into your client’s account. To do this, go to the green plus button at the bottom right and navigate to your Income section.
At the bottom, you'll notice a Windfall account type. Click on that, and we’ll call this Tom's Inheritance. He is expecting $500,000 next year, so we’ll schedule this to come into the plan the following year.
I’ve already created an event on the timeline for this, but if you haven’t, you can double-click anywhere on the timeline to assign a start date. Add this, set a start event, and click Done.
You’ll now see the graph shows a large inflow coming in next year. If you turn on Details, you’ll see this as a separate color labeled as Other Income.
There are a few things you can do with this other income once it’s in the plan.
The first scenario I want to show you is that Tom has a mortgage on his primary residence. We’d like to pay off that mortgage first and then sweep the leftover money into his general investment account.
To do this, go to Tom’s Cash, then Sweep Options. First, move the home mortgage from the debts screen to accounts to sweep into. The secondary account to sweep into will be the general investment account.
The software will first pay off the mortgage balance, then put the remaining balance of the windfall into Tom’s general investment account. Click Done, then go to Details – Year View to see what the software is doing.
For the year the windfall is scheduled, check the Debt Screen. You’ll see an additional mortgage payment that year, and the end-of-year balance is zero. The following year, there’s nothing in the debt screen, meaning all debts have been paid in full.
Next, check that the remaining amount has been swept into the investment account. You can see a large contribution of $127,349. If you open this up, you’ll see it as an unscheduled transfer, doing exactly what we wanted.
The second scenario is if there is no debt or if the client wants the money to go elsewhere. You can simply transfer the windfall into an investment account.
Clear out the cash sweep accounts. Once the windfall is in the account, go to the plus button, click Transfers, and choose All Surplus as the source. Select the destination as Tom’s General Investment Account.
You can specify a specific amount or select All Available. This will be a one-time transfer, so we won’t set it as recurring.
Now, schedule the timing of this transfer to coincide with the inheritance coming into the plan. Select that event, set a start event, and click Done.
You’ll notice the black line representing the total need in the plan is now over that windfall amount. Go to Details – Year View, then the Investments tab, and scroll to the year the windfall comes in. You’ll see the large contribution coming out of the windfall, and that amount will grow year over year.
I hope this was helpful. If you ever get stuck while working in a plan, feel free to reach out to the support desk by clicking the name of your client, selecting Request Support, typing your note, and selecting Share Client Access. This sends us a link to your client’s plan so we can take a deeper look and help resolve any issues.