The Retirement Options chart analyzes the 4 Primary Planning Options available to the client. These 4 options are the base changes needed to eliminate future cash flow excesses or deficiencies. This chart will change depending on the client type calculated. There are 3 main client outcomes; Insufficient Total Assets, Insufficient Liquidity, and Excess Assets.
Insufficient Total Assets
When a client falls short of funding their cash flow needs, and there are insufficient fixed assets available for liquidation, the software will show all options as red. For example, if the client is short $200,000 at retirement, and there is only $150,000 of fixed assets available, the client is $50,000 short and therefore triggers the red result. However, the software will not include the value of the client’s Principal Residence in this calculation. Due to the risk involved, it is up to the advisor to make this recommendation.
Insufficient Liquidity
When a client falls short of funding their cash flow needs but has sufficient fixed assets available for liquidation, the software will show all options as yellow. For example, if the client is short $200,000 at retirement, and has is at least $200,000 of fixed assets available, the software sees liquidation as a viable solution and displays a yellow result. The software will not include the value of the client’s Principal Residence in this calculation. Due to the risk involved, it is up to the advisor to make this recommendation.
Excess Assets
When a client is projected to have more liquid assets than is necessary to fund their cash flow needs, the software will show all options as green. For example, if the client is requires $200,000 at retirement, and is projected to have $300,000 of liquid assets available, the client has $100,000 of excess liquidity and therefore triggers the green result.
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