Plan Preferences control the default assumptions used throughout a financial plan. These settings influence how Voyant projects inflation, investment growth, taxation, account fees, liquidation strategies, and other planning calculations.

The values provided when a new plan is created are intended as illustrative defaults to help advisers begin building a plan. 

Each advisory firm should review these settings and establish assumptions that align with its planning philosophy, investment methodology, compliance requirements, and capital market expectations. Many firms choose to standardize these values across all client plans to ensure consistency.

Once established, these settings become the default assumptions used when new items are added to the plan. Individual accounts, expenses, income sources, and other planning items can still override these defaults where appropriate.

Tip: Plan Preferences establish the default assumptions for new items added to a plan. Changing a Plan Preference does not automatically update existing accounts, expenses, income sources, or other items that have already been created. Existing items should be reviewed individually if you want them to use the updated assumptions.

Default Ages

These settings establish the default ages used when new plans and planning events are created. Individual plans or items can still override these defaults where appropriate.

Default Mortality Age

This setting determines the default mortality age assigned to new clients when they are added to a plan.

For example, if the Default Mortality Age is set to 90, new clients added to the plan will, by default, have a mortality age of 90. Unless this is changed for the individual client, the plan will project through to that age.

Consider reviewing this setting if:

• Your firm uses a different default life expectancy assumption.

• You want new plans to begin with a different planning horizon.

  Note: Changing this setting only affects clients added after the preference is changed. Existing client records retain their current mortality age unless updated individually.

Child-Owned Accounts

This setting determines the default age at which child-owned accounts are automatically removed from the plan.

For example, if this setting is 25, any account owned by a child will, by default, fall out of the plan when that child reaches age 25.

This setting is commonly used when modelling assets that are expected to transfer out of the household once a child reaches adulthood.

Consider reviewing this setting if:

• Your firm typically models financial independence at a different age.

• You want child-owned assets to remain in the household longer or fall out sooner.

  Note: This is a default assumption. Individual account ownership and planning circumstances can still be adjusted where appropriate.

Inflation and Growth

These settings establish the default assumptions used for inflation, investment returns, income growth, and other projections throughout the plan.

Inflation Rate

The Inflation Rate is used to inflate:

• Living expenses
• Goals
• Future property purchase prices

Individual expenses can override this default if a different inflation assumption is required.

Consider reviewing this setting if:

• Your firm uses a different long-term inflation assumption.
• You are modelling an alternative inflation scenario.
• Your firm's planning assumptions have been updated.

Savings Growth Rate

This is the default interest rate applied to savings and cash accounts.

It is only used when an account is growing using an entered interest rate. If an account is instead configured to grow using Portfolio/Holdings, the Cash asset allocation assumptions are used instead.

Each savings account can override this default individually.

Consider reviewing this setting if:

• Your firm uses a different long-term cash return assumption.
• You want new savings accounts to use a different default interest rate.

Investment Growth Rate

This is the default capital growth rate applied to investment accounts, retirement accounts, and pensions when they are configured to grow using an entered growth rate.

This setting is also used as the default growth assumption for the hypothetical taxable investment account created by the Annual Savings Insight.

Consider reviewing this setting if:

• Your firm models investments using fixed growth rates.
• Your firm's capital market assumptions have changed.

Property Growth / Depreciation Rate

Determines the default annual appreciation or depreciation applied to property and other illiquid assets after purchase.

Negative values may be entered when modelling depreciating assets.

Examples include:

• Residential property
• Commercial property
• Vehicles
• Equipment

Income Growth Rate

Determines the default annual increase applied to:

• Employment income
• Other recurring income

Individual income sources can override this assumption.

Consider reviewing this setting if:

• Your firm uses different wage growth assumptions.
• You are modelling a specific employment contract or salary progression.

Social Security COLA

Determines the annual Cost of Living Adjustment (COLA) applied to projected Social Security benefits.

For example, if this setting is 3%, Voyant assumes Social Security benefits increase by 3% annually after benefits begin.

Pension COLA Rate

Controls the annual increase applied to Defined Benefit Pension income.

This should reflect the assumptions your firm wishes to use when modelling pension benefit increases.

Annuity Assumed Interest Rate

This is the default interest rate used when:

• Converting accumulated pension funds into annuities.
• Calculating payments for future annuity purchases.

Individual annuities may override this default.

Default Tax Table Assumption

Allows future tax assumptions, including tax brackets, contribution limits, thresholds, and allowances, to increase annually.

Most firms will establish a standard assumption and apply it consistently across plans.

State Estate Threshold / Bracket Escalation

Controls how future state estate tax thresholds and tax brackets increase over time.

This setting is only relevant when modelling plans that may be subject to state estate taxes.

Hurdle Rate

The hurdle rate is used when modelling certain advanced estate planning strategies, such as a Grantor Retained Annuity Trust (GRAT).

It represents the minimum investment return required for the strategy to successfully transfer appreciation to beneficiaries.

Most advisers will only adjust this setting when modelling specific trust strategies.

Reinvest Investment Yield

Determines whether investment income is reinvested by default or distributed annually.

This default can also be overridden for individual investments.

Grow All Investment and Retirement Accounts Using Asset Allocation

When enabled, all investment and retirement accounts use their assigned asset allocation to determine growth.

When disabled, individual accounts may choose between:

• Entered Growth Rate
• Portfolio/Holdings

Firms that model portfolios using capital market assumptions will often enable this setting.

Grow All Savings and Cash Accounts Using 100% Cash Allocation

When enabled, all savings accounts use a Cash asset allocation instead of an entered interest rate.

When disabled, each savings account may choose its own growth method.

Account Fees and Taxation

These settings establish default account fees and taxation assumptions.

Product Fees

Default fee assumptions can be established for:

• Cash Savings
• Taxable Investments
• Tax-Deferred Investments
• Tax-Free Investments
• Qualified Retirement Accounts

Investment growth is always calculated net of fees.

For example:

• Growth Rate: 6%
• Annual Fee: 0.50%
• Net Growth: 5.50%

Each account can override these defaults individually.

Annual Capital Gains Liquidation

When enabled, Voyant calculates taxable gains annually, applies any taxes due, and transfers the remaining proceeds to cash.

This setting applies only to taxable investment accounts.

Amount Taxed as Income

Determines the percentage of investment income that is treated as ordinary income for taxable investment accounts.

Amount Taxed as Capital Gains

Determines the percentage of investment distributions that receive capital gains tax treatment.

The default value reflects the software's standard taxation assumptions and can be adjusted if your firm's methodology differs.

Asset Allocation Assumptions

These settings determine how investments grow when using Portfolio/Holdings.

Expected Average Return

Represents the long-term average annual return expected for an asset class.

Growth is calculated after deducting applicable fees.

Up and Down Values

These values are used by market assumption datasets that include volatility.

They represent higher and lower return scenarios surrounding the expected average return.

Most firms will not adjust these values unless maintaining custom market assumptions.

Interest Yield

Represents annual interest income generated by an investment.

For example, a 3% interest yield on a $100,000 investment produces $3,000 of annual interest income.

Dividend Yield

Represents annual dividends paid as a percentage of the investment balance.

Depending on the investment settings, dividends may either be:

• Reinvested into the investment
• Distributed as income

Major Loss

These settings establish the defaults used when adding a Major Loss event.

Default Age

Determines the age at which the market event initially occurs when added to the plan.

This can always be adjusted for the individual event.

Fixed Growth

Applies only to investments using an Entered Growth Rate.

Allocation Percentile

Applies only to investments using Portfolio/Holdings and asset allocations.

Liquidation Order

The Liquidation Order determines which assets Voyant will access when additional funds are needed to cover planned expenses.

If regular income is insufficient, eligible assets are liquidated according to this order, provided they do not have liquidation restrictions.

Note: If your plan contains a Roth 401(k), consider adding it explicitly to the liquidation order. Because it is both a Qualified and Tax-Free account, specifying it directly helps ensure it is liquidated in the intended order.

Savings Order

The Savings Order determines which account types receive contributions first when multiple scheduled contributions occur during the same year.

Calculation Settings

These settings control how Voyant performs overall plan calculations.

Transfer All Excess Income/Credits to Savings

By default, Voyant assumes surplus regular income that has not been allocated elsewhere is spent.

When enabled, surplus income is automatically transferred to the household's Cash Sweep Account.

Consider enabling this setting if:

• Your client consistently saves surplus income.
• You want the plan to model automatic saving of excess cash flow.

Save Excess Income After Retirement

Functions similarly to the previous setting but only applies after retirement.

Prior to retirement, surplus income continues to follow the Transfer All Excess Income setting.

Allow Qualified Withdrawals Before Age 59½

By default, Voyant assumes early withdrawals from qualified retirement accounts are subject to applicable penalties.

Enable this setting only when modelling a client who qualifies for an IRS exception allowing penalty-free withdrawals before age 59½.

Assume Pre-Deceased Upon First Death

Determines how jointly owned estates are handled when modelling simultaneous mortality.

This setting primarily affects estate calculations.

Community Property

Enable this setting when modelling clients who reside in a community property state.

This affects ownership assumptions used during estate planning calculations.

Estate Tax Exemption Carryover

Enables portability of unused federal estate tax exemptions between spouses.

This setting is generally only relevant for households expected to be subject to federal estate tax.

Basic Need Line

The Basic Need line shown in charts represents the income required to fund:

• Essential living expenses
• Taxes

It does not include:

• Leisure expenses
• Luxury expenses
• Milestone goals
• Legacy goals
• Contributions to savings
• Contributions to investment accounts

Best Practices

For most firms, Plan Preferences are established as part of the firm's planning methodology and then used consistently across all client plans. Individual accounts, expenses, and income sources can be customized where a client's circumstances require different assumptions.

As a general approach:

• Review your firm's Plan Preferences periodically to ensure they remain aligned with your planning philosophy.
• Use Plan Preferences to establish consistent defaults across new plans.
• Override assumptions at the individual item level only when modelling client-specific circumstances.
• Document any changes to firm-wide assumptions so that planning remains consistent across advisers and client engagements.

Using Plan Preferences in this way helps create consistent, transparent, and repeatable financial plans while still allowing flexibility where individual client situations require it.