The Cash Flow Planner is a powerful new diagnostic tool we are introducing to further our goal of helping advisors quickly and effectively assess a client’s ability to fund their goals.
The Cash Flow Planner is meant to complement the Household Balance Sheet diagnostic that is already available with goalgamiPro. The Household Balance Sheet is a very effective tool at analyzing a household’s goals over their entire lifetime and distilling that information down into a point-in-time snapshot of the household’s ability to afford their goals. The Household Balance Sheet is excellent at answering the question of: “Can I afford my goals?”
Cash Flow Planner answers the next logical question clients ask:
“Can I pay my goals when the time comes?”
Like the Household Balance Sheet, the Cash Flow Planner uses a client’s plan information, including expected income, expenses, goals, and economic assumptions. The Cash Flow Planner uses the information to model and compare needed annual year-by-year future cash flows from all household funding sources to determine if the household will have enough money to pay the cost of goals when they come due.
Like all features of goalgamiPro, the Cash Flow Planner helps you—and your clients—understand what actions to take today to enable clients to enjoy their goals, including retirement, in the future.
Benefits of the Cash Flow Planner
The Cash Flow Planner helps you:
- Spot funding deficits easily
- See which income sources and accounts are used each year to fund goals
- See which funding sources are utilized to pay for the cost of goals and how long assets will last
- Visualize what future cash flows will look like
- Model cash flows by goal level
- Quickly revise plan information and economic assumptions so you can see how cash flows change
- See how taxes and other costs affect cash flows
The Cash Flow Planner includes:
- Cash flow modeling engine that determines the optimal account drawdown strategy for funding goals
- Detailed annual cash flows that show:
- Funding sources for a client’s goals
- The cost (including taxes and fees) of a client’s goals
- Remaining account balances after funding a client’s goals
- A “How Do I Pay for My Retirement?” report section (Beta) that you can add to each client’s Goal Achievement Report and share with your clients to quickly and effectively show them how prepared they are for retirement.