by Carolyn Rothwell on May 20, 2013

Retirement Needs and Capital Analysis Planning Reports in Easy Money


The retirement planning reports in Easy Money reviews your clients’ retirement goals, assets available for retirement, and estimates how long the clients’ funds may last based on the planning assumptions.  The Retirement Needs Analysis and the Retirement Capital Analysis work together to evaluate the clients’ income needed for retirement and the amount of capital required to cover income shortfalls in retirement compared to the amount of capital the client is projected to have available for retirement.  The guides below will help answer common questions about these two key illustrations.  


Retirement Needs Analysis (C3)

This report starts by evaluating the clients’ “Income needed,” which represents the amount needed to cover spending from retirement to life expectancy.  Next, the report evaluates the clients’ sources of income available from retirement to life expectancy.  The income streams will help offset the spending need. 

The total income needed, less total income available, derives the “Income shortfall.”  This is the amount the clients’ spending will exceed scheduled income sources, from items like pensions and Social Security. The last line of this report shows the “estimated capital required at retirement to satisfy this shortfall.”  This represents the amount of assets the clients need to have saved by retirement to cover future income shortfalls.  

This report moves into the Retirement Capital Analysis, which considers the amount of assets the clients are projected to have available at retirement. 

Retirement Needs Analysis


Retirement Capital Analysis (C4) 

This report starts by carrying forward the clients’ total income shortfall and the capital required to cover that shortfall from the Retirement Needs Analysis. Next, the report lists the clients' current assets, scheduled additions, rates of return and the projected balance at retirement. If the clients “total asset values” exceeds the “capital required,” the clients are projected to have enough saved to cover future cash flow shortages and should not run out of assets prior to life expectancy.  

If the value of the client’s asset at retirement does not meet or exceed the capital required, the client will have a shortfall and deplete their assets prior to life expectancy.  In the case of a shortfall, shortage solutions will display.  Shortage solutions #1 & #2 are illustrated on the Retirement Estimate Solution (C5).

Retirement Capital Analysis

The Retirement Needs Analysis and Retirement Capital Analysis summarize information available on the Retirement Capital Estimate (C6).  The Retirement Capital Estimate provides a detailed year-by-year projection of the clients' retirement income sources, expenses, and asset values based on the scenario assumptions.  

The retirement planning projections are available from Easy Money Power Planner.  Easy Money is one of the most comprehensive tools available for detailed financial planning and provides you the information and reports you need to guide your clients to their goals.  



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TOTAL is known for highly accurate industry-proven calculations and the unique ability to create goal-based planning reports with Easy Money Power Planner and cash flow-based reports with Golden Years Cash Flow. 

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Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance of financial planning.