Transcript:
In this training, we’re going to review how to enter a taxable investment account into the Voyant Global platform.
To begin, go to the plus button in the bottom-right corner of the screen and select Savings & Investments.
From there, select the Investments section.
The first option available is a Taxable Investment account.
In this example, we want the account to be jointly owned by both spouses.
First, give the account a name.
Next, enter the starting balance for the account.
It’s also important to enter the purchase value, or cost basis, so the software can apply the correct tax treatment when withdrawals occur in the future.
For this example, we’ll enter the purchase value and then account for ongoing contributions into the account.
This couple will contribute $1,200 per month.
Next, let’s review the Growth section.
You have a few different options here.
You can enter a fixed growth rate to model deterministic growth throughout the plan, or you can use a portfolio-based approach.
If you already have portfolios configured, select Use Portfolio to load your custom portfolios.
You can then select from the available portfolio options and use the slider bar to choose the appropriate allocation.
For this example, we’ll use a Moderate Growth portfolio.
Next, we’ll confirm that fees are being modeled correctly.
In this example, the portfolio has an average rate of return of 5.69%, with 0.5% deducted for product fees.
Now let’s review the Timing section.
We want to confirm that contributions begin this year and end when Johnny retires.
Next, we’ll create a step to de-risk the portfolio at retirement.
To do this, select Add Step.
Then go to the Growth section, enable Asset Allocation, and move the portfolio allocation to a more Conservative portfolio.
Next, go to the Timing section and set Johnny’s retirement as the event when this change should occur.
Click Done to save the step.
A few additional items to review:
If you need to transfer assets into this account from another account already modeled in the software, you can use the Transfers section.
If you want to apply a withdrawal limit to the account, you can configure that in the Withdrawal Limits section.
And if you need to schedule withdrawals outside of the normal liquidation order, you can create those in the Withdrawals section.
Now click Done to save the account.
Next, we’ll confirm that the plan is using taxable assets to help fulfill expenses during retirement.
To review this, turn on the Details view in the Cash Flow chart.
Finally, let’s confirm that the portfolio de-risking step is occurring correctly.
Go to Year View and open the Investments section.
In the first year of the plan, we can confirm that the account is using the Moderate Growth portfolio and generating a 5.19% net growth rate after fees.
Then, when we move forward to retirement, we can confirm that the portfolio has shifted to the more conservative allocation. You can see both the updated net growth rate and the revised asset allocation reflected there.
I hope this has been helpful.
If you have any questions, feel free to reach out to us by clicking the client’s name in the top-right corner of the screen, selecting Request Support, and submitting your question through the support text box.
Thanks for listening.