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What are the differences between Current Plan and Proposed Plan?

When you first "run" a plan by moving from the Profile section into the Financial Plan section and clicking on "Recommendations", or when you "Reset" a client's financial plan, the Proposed Plan will only have two differences from the Current Plan in the main graph for the Retirement Goal.

The first area that may be different is the Additional Savings tab for each goal. We have built in an algorithm to this section that will try to maximize the use of every extra dollar that could be saved towards goals. The algorithm may set the "Additional Savings" amount for each goal to be greater than zero, which means that you are recommending to the client that they save an additional amount beyond what they might do today. (For more information about this algorithm, learn about the optimize button) Setting all of these Additional Savings amounts to $0 will replicate the current plan's savings amounts towards goals.

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The second major initial difference between Current and Proposed Plan will be in the Asset Allocation for each goal. Your client will have an existing asset allocation for each investment account that is considered their "Current" allocation. When selecting a portfolio in the Risk Tolerance section of the Profile, you are setting the client's new default Proposed asset allocation across all goals. You'll be able to override this Proposal for each goal, but initially, that new portfolio selected under Risk Tolerance will contribute to different results in the Proposed financial plan. If you change the proposed asset allocation in the What Ifs - Asset Allocation tab for each goal to "Current Allocation", the Current and Proposed plans should match exactly (once Additional Savings are also set to $0 for all goals).

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Beyond the initial run of the plan or right after the plan is "Reset", once you begin changing the variables in the What Ifs for each goal, you would need to compare each variable in the What Ifs to the same variable in the client's Profile in order to understand the differences between the two plans. If you'd like to keep track of the changes you're making in the Proposed Plan, you could write a list of the changes in the "Additional Tips" section for each goal, which is a free text entry box. This text DOES appear on the client's plan (both in the PDF and in Presentation Mode) so be sure to edit it appropriately before you present the plan to the client.

Our team is working on a report of all differences between the two plans so that you will not have to track these changes manually.