Transcript:
In this training, we’re going to review how to enter tax-deferred and tax-free investment account types in Voyant.
Before we begin, I want to quickly review the Liquidation Order settings in Plan Settings.
As a reminder, liquidation order can be configured either at the individual plan level or at the subscription level.
Based on the current liquidation order in this plan, the software will liquidate taxable accounts first, followed by tax-deferred accounts, and then tax-free accounts last.
You can adjust this order by simply clicking and dragging the account types into a different sequence.
Keep this liquidation order in mind as we enter different account types, because this is the order the software will use to fulfill expenses during the retirement phase of the plan.
Next, go to the plus button and select Savings & Investments.
Then go to the Investments tab.
Within this section, you’ll see four different investment account options. We already reviewed taxable investments in a previous training, so in this session we’ll focus on tax-free and tax-deferred account types.
First, we’re going to enter a tax-free investment account for Johnny.
Begin by giving the account a name.
Keep in mind that whatever name you enter here will appear on reports and on the dashboard when presenting to clients.
Next, enter the current account balance.
If you’re working with multiple currencies, you can also use the built-in currency converter to convert values into the plan’s working currency.
Then enter the purchase value for the account.
Under Contribution Types, enter the amount being contributed annually or monthly.
Next, go to Update Timing so you can define when contributions begin and end.
For this example, contributions will begin at the start of the plan and end at Johnny’s retirement event.
Now let’s look at the Growth section.
By default, the account will use the growth assumptions defined in Plan Settings. However, if you would rather use a portfolio-based growth assumption, you can switch to Portfolio, enable Use Portfolio, and select the portfolio you want to apply using the slider bar.
Next, we’ll click Save and Add Another and create an employer-sponsored tax-deferred retirement account.
Again, enter the account name, current balance, and purchase value.
For the contribution type, we’ll use a Percentage of Income.
In this example, Johnny contributes 8% of his income, and his employer matches contributions at 80% of up to 6% of his income.
Next, go to Update Timing and set the contribution schedule.
We’ll use the same start and end dates as before, beginning at plan start and ending at retirement.
Now let’s add a de-risking strategy for the portfolio.
For example, the account may currently be growing at 6%, but we may want that growth assumption to reduce to 5% when Johnny retires.
Once complete, click Done to save the account.
Next, we’ll click Save and Add Another again to enter Nora’s employer-sponsored retirement account.
Enter the current balance, contribution amount, and any employer matching contributions.
In this example, Nora’s employer matches 100% of her contributions up to 5% of her income.
Once completed, click Done to save the account.
Now let’s quickly look at how this appears on the dashboard.
If we turn on the Details view in the Cash Flow chart, you can see the software following the liquidation order we discussed earlier.
The software is first using taxable cash and investment accounts, and then later moving to tax-deferred retirement savings accounts.
You can also go to Year View and open the Investments section to review estimated end-of-year account balances after contributions and withdrawals.
As you move into the retirement phase, you can review projected balances at retirement and see how those accounts liquidate over time.
You can even click directly into the accounts to review additional details such as asset allocation and fees.
I hope this has been helpful.
If you have any questions, you can always reach out to us at support@planwithvoyant.com.
You can also request support directly within the client plan by entering your question into the support request text box and sharing client access with us.
Thanks for listening.