Inflation Adjustment Insight Transcript
Hello, and welcome to today’s AdviserGo training.
Today, we’re going to walk through Voyant’s Inflation Adjustment Insight.
This insight can be found in the Insights section of the software. We’ll go ahead and open it now.
The Inflation Adjustment Insight allows you to apply additional inflation on top of what is already being modeled in the plan for a selected period of time. This can help you see how higher-than-expected inflation may affect the client’s purchasing power, net worth, and whether it could create a projected shortfall in the plan.
For this example, I’m going to add an additional percentage of inflation on top of the current assumptions.
Next, I’ll use the slider bar to apply that additional inflation to a specific period of time in the plan. In this case, we’ll select a 10-year period.
Once those selections are made, we’ll click Get Started to see how this scenario affects the client’s plan.
Right away, we can see that there is a change in net worth of approximately $13.6 million. However, no shortfall is expected in this plan.
We can also see what the additional inflation has been applied to. In this example, it has been applied to expenses, anything using CPI or RPI, and the client’s goals.
From here, we can use Compare Plans to review the original plan alongside the insight results.
In the comparison view, we can see that there is no projected shortfall in the insight result. However, when we compare the Net Worth chart side by side, we can see the impact more clearly.
In the original plan, the ending net worth is projected to be approximately $50.3 million. In the insight result, with higher-than-expected inflation applied, the ending net worth is projected to be approximately $36.7 million.
This shows how inflation may not always create an immediate shortfall, but it can still have a significant impact on the client’s long-term net worth and purchasing power.
The Inflation Adjustment Insight is a helpful way to stress test a client’s plan against higher-than-average inflation and to discuss how rising costs could affect their overall financial outlook.
If you have any questions, or if you would like help running this insight, you can request support directly from within the client case. Click the client’s name in the top-right corner, select Request Support, enter your question in the text box, and share client access.
Thanks for listening.