This video will walk you through how to stress test your plan against a major loss.
Transcript
From your dashboard, go down to Plan Settings and select Major Loss. You can model a major loss event anywhere from one to five consecutive years, and you can set the default age for this to occur. I’ll leave it at age 60 for now.
Next, I’ll change the duration to five years so we can see how it works over consecutive years. As I adjust the fixed growth rate numbers, you’ll notice the allocation percentile adjusts automatically. Major loss on assets uses the allocation percentile, so for example, entering a 20% loss will translate automatically into a percentile figure.
Once everything is set, click Done.
Now, I’ll create a What-If scenario and call it “Stress Test Major Loss Plan.” Go to the Timeline section, click the plus button in the bottom right, and select Events. Under Special Events, choose Major Loss and add it to your What-If scenario. It will default to age 60, but you can adjust it directly on the timeline. Click Done.
We now see a major loss added to the client’s plan starting at age 60. Returning to the dashboard and Year View, we can see the losses reflected in the Investments and Retirement sections over the course of the five years. After year five, growth returns to positive.
To compare the stress test against your client’s original plan, go to Chart View. This allows you to visualize how a major loss over five years might affect your client’s assets over time.
I hope this has been helpful. If you have any questions, you can reach out to support@planwithvoyant.com or click on the name of your client in the top right, select Request Support, and we can assist you.