Preretirement Planner Tutorial

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Welcome. This video will walk you
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through the latest feature inside income
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lab, the pre-retirement planner inside
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Decision Lab. We are excited to release
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our next beta feature inside the
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Decision Lab suite. To get to the new
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pre-retirement planner, first select the
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household from your main dashboard.
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Then find the decision lab icon on the
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left side of your screen. Then you'll
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see the pre-retirement planner available
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for access.
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The pre-retirement planner is a great
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way, especially when working with
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younger clients who really want some
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help understanding how their retirement
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timeline affects their savings or how
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their savings might influence their
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retirement paycheck. If you've already
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set up information for this household,
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you can click skip to results. But for
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this tutorial, we'll click get started
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to walk through the inputs. First, enter
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their pre-retirement income. If you do
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have their current pre-retirement income
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below, you will see those numbers
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referenced below in case you want to
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quickly use those numbers. For here,
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I'll just put in 15,000 for the example.
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Then hit continue.
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Next, enter the target retirement
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spending amount.
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Let's say if the clients here were
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wanting to maintain their lifestyle, we
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could simply put that same $15,000
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amount here. And you'll see this gives
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us a 100% replacement ratio. If you have
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any baseline expenses entered, you will
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also see that below for reference.
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From there, enter how much they are
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willing to save each month. Here you can
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easily enter a dollar figure or if you
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rather use the percentages, we can save
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put a range of 5% here and let's say to
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about 10% and the software will
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calculate the dollar amount. Below
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you'll see any current savings or
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contributions entered into the plan.
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This is again a great reference point.
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In some cases, you may want to model
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this additional savings on top of what
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the clients are already contributing to
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their portfolio. In that situation, you
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do want to check this box to include the
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savings range above in addition to the
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savings items already in the plan. For
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this example, again, I will keep it
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simple and just keep that unchecked. Hit
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continue when you're ready. Next, you'll
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select the range of years the clients
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would be willing to retire. In this
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example, my clients are about 50 years
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old. So, we can say maybe they're uh
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wanting to retire uh 10 years from now
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at 60 and then maybe they want to go
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till about 65 and anything within that
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range would be kind of an ideal
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retirement age for them. You will see
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the set fixed date. So, if you're using
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one member of the household and you want
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to set their age is the fixed retirement
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date, you can select the set fixed date
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option. And then here you'll see we'll
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use Tim's uh retirement date or at 50
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and it'll give us that year. But again,
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for this example, I will use that full
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range just so we can see how that works
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with the default settings. Next, hit
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continue. You'll get a great explanation
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of what you'll see next. And once you're
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ready, click explore options. Once this
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loads, you'll see a great heat map here
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that really lays out the different
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options available for the clients. So
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here you'll see on the left based on the
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amount they're saving in pre-retirement
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or based on the years in which they want
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to retire. Similar to the social
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security optimizer, you'll also have a
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target highlighting section that will
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essentially highlight all the options
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that here are within 5% range of their
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optimal or desired amount. If you'd like
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to change that target highlighting,
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click the icon here in the top right and
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then you can easily put in a new number
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there and then hit save. Next, on the
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left here, you can quickly change the
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slider for manipulating the amount they
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are willing to save in pre-retirement.
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If you'd like to use the percentage
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instead of the dollar figures, you can
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click that toggle and then move that to
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your percentage there. And then same
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thing here below for this toggle, you
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can move quickly to see the different
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retirement date options. What's nice on
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the slider here is as you see on the
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bottom, you can highlight this number
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based off of the amount the clients are
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desiring. So, this is a great way to
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have a conversation where if the clients
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are maybe only desiring, let's say,
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$22,000 worth of income, we can get as
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close to that number here, and the
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software will automatically find the
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savings amount and the year that gives
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them that ideal retirement paycheck
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amount. Again, with the target
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highlighting, you can see all the ranges
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of options within this green area that
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are within 5% of that desired amount.
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The darker colors will show you when
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you're closest to that number and then
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the lighter colors as you're getting
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further away from that number. This is
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also a great place as you are having
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conversations with clients. Maybe
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they're wondering, hey, what if we do
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retire as early as possible and we save
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us the least amount possible to get
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there? What is our retirement paycheck?
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And here we can see in this situation
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where the client save $750 per month and
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retire at 2035, their retirement
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paycheck will be 20,600. So you are able
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to quickly move through and click all
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these options available on this chart.
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Up top you'll see the software give you
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just an easy way to really express this
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situation to the client. So here we can
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easily read it and say if monthly
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savings are $1,130
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and retirement age for Tim is 62 or in
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November 2037 and for Tammy is at 62 or
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April 2037, then the retirement paycheck
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will be 21,900.
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So whether you are looking at it
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directly on the chart or you want the
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easy way to just explain it, you have
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all those options directly on the
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screen. If at any point you'd like to go
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back and edit your inputs, you can click
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the pencil icon, edit your parameters,
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save any changes, and get right back to
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the heat map. That's it. Thank you for
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viewing this video. Please reach out to
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our team if you have any questions.
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We're excited to hear your feedback on
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this new feature, and we look forward to
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hearing from you.