Track Goals

Goals

Your contacts have the ability to add goals from within their dashboard for matters like retirement, college savings, special events, and buying a home. Watch the below video to learn how your contacts create goals.

The Goals Dashboard shows you the total amount of goals your contacts has, how much they have toward their goal, how much they need, and the percentage of how far along they are to completing all of their goals (excluding life insurance goals). When you hover over each goal, you will see the specifics of what they have saved toward each goal, what they need to fulfill it, and the percentage of how far along they are to completing that goal.

The today line represents today’s date. Any time a goal’s bar is filled to the today line, your contact is on track as of today for meeting their goal. Any time a goal’s bar is not filled up to the today line, they are off track. This would indicate a need of more accounts to be assigned to the goal. Any time a goal’s bar is filled past the today line, your contact is technically over track and could reallocate accounts to other goals. This is a great time to communicate with your client or prospect on what they could do differently to get the most out of their funds as it pertains to their goals. The goals are also ranked by priority. If you do not see any goal information, you can use the + Add Goal button to add goals for your contact. It’s also important as an adviser to be able to explain how the need value is calculated. The below section reviews how each goal type is calculated.

Screen_Shot_2017-11-06_at_4.34.52_PM.png

Retirement

Retirement is one of the most fundamental goals you help your clients and prospects reach. When you add a retirement goal for your contact, name it something that will help them identify the goal. For example, you could name a retirement goal “Retirement”. Use the priority slider to designate the priority for this goal. When selecting the priority, the goals will be be ranked when presented in the Goals Dashboard.  Be sure to select the age in which your client or prospect desires to retire and the amount of income they would like to have to spend “pre-tax” while in retirement. After pressing submit, the Goals Dashboard will show you a chart with a line that you can scroll over. As you scroll along the line, you are shown the amount of funds they need to retire at the age you selected and to have the amount of income per month that you selected from today until the year they retire. The idea is for your client or prospect has this amount of needed funds by the day they retire.

Screen_Shot_2017-11-07_at_8.18.14_AM.png

The configuration established in the Firm Info section affects the value projected. Only firm admins can change configuration. Ask your firm admin if you do not have access. This configuration includes rate of inflation, rate of return, and life expectancy. If rate of inflation is set at 3%, rate of return is set at 6%, life expectancy is set at 95 years, and your user is 50 and wants to retire at 60 with $5,000/month to spend in retirement then he or she will need $1,299,206.84. Here is that calculation written out mathematically.

Solve for R

R = (Rate of Return/12) - (Rate of Inflation/12)

R=0.06/12-0.03/12

R=0.005-0.0025

R=0.0025

Then solve for the amount of time between life expectancy and your contact's retirement age. In other words, the amount of years someone is alive in retirement. We will call this time period LE. In this case, 35 years since the client user is 60 at retirement and life expectancy is set to 95 years. Mathematically this looks like:

LE = Total Life Expectancy - Age at Retirement

LE = 95 - 60

LE = 35

Finally, take the amount the contact wants to withdraw in retirement each month. We will designate this as withdrawing. In the above scenario where the contact wants to spend $5,000 per month in retirement withdrawing = 5000.

Now you are ready to solve for how much the contact needs to achieve their retirement goal.

Screen_Shot_2017-11-07_at_8.24.28_AM.png

Need= 1,299,206.84

Your client or prospect needs $1,299,206.84 by retirement to sustain their goal. Understanding how this equation works allows you to better understand what your client or prospect needs for a retirement goal.

Once you have reviewed this chart you can start assigning accounts to the goal. This assignment will show what they have towards the need. You are able to see if they are off-track or on-track. By seeing the amount they need versus the amount they have will help you to help them reach their desired goal.

Home Goals

Home goals are another form of goals you can help your clients or prospects with. Some people have a goal to purchase their first home, a second home, or an investment property. Like the above retirement goal, when you add a home goal into the dashboard, you first name the goal something they will remember it by. The priority slider designates the priority level for the goal.

Screen_Shot_2017-11-07_at_8.27.19_AM.png

After creating the goal, the dashboard will show you a chart with a line that you can scroll over. As you scroll along the line, you are being shown the amount of funds your client or prospect needs to purchase the home on the date you selected given the purchase price you selected. To ensure your contact has enough funds by the time the goal date comes to fruition, the inflation rate is applied to the need. Let’s review how this goal is calculated mathematically. Let’s say your client or prospect wants to buy a home in 12 months for $100,0000 and inflation is set to 3%.

Screen_Shot_2017-11-07_at_8.28.07_AM.png

Your client or prospect will need $103,041.60 to accomplish this goal in 12 months. Once you have reviewed this chart you can start assigning accounts to the goal. This assignment will show what your client or prospect has towards the need. You are able to see if they are off-track or on-track. By seeing the amount that your client or prospect needs versus the amount they have will help you help them reach their goal.

College Goal

College planning is one of the most fundamental goals you help your clients and prospects reach. When you add a college goal into their dashboard, name it something they will remember it by. Use the priority slider to designate the priority for this goal. When selecting the priority, the goals will be ranked when presented to you in your Goals Dashboard. Select the state the school is in, the name of the school in which the person is attending, and the name of the individual who is attending the school. You can also select who this goal is for. If the individual is someone other than the profile owner but is not listed here, go to the user’s Settings to add their spouse and/or children. All spouses and children added in their Settings can be selected for a college goal. You will see the college cost projected in the cost field. This cost is calculated by U.S. News & World Report. Finally, select the date in which you want to reach this goal. For example, if you have a child, you could make the goal date for when they turn 18. Let’s review this how this goal is calculated.

Screen_Shot_2017-11-07_at_8.30.07_AM.png

Let’s say your client’s child was just born and you make a college goal for when they turn 18 to make sure you have enough money to cover tuition and room and board for a school that currently costs $219,384.00 for 4 years and inflation is set to 3%.

Screen_Shot_2017-11-07_at_8.30.59_AM.png

After pressing submit, the dashboard will show you a chart with a line that you can scroll over and will show that your client or prospect will need $373,486.57 to fund his or her’s child’s college goal. As you scroll along the line, you are being shown the amount of funds your client or prospect needs to reach the college goal. The idea is to have this amount of needed funds before the college start date. Once you have reviewed this chart you can start assigning accounts to the goal. This assignment will show the amount your client or prospect has towards the need. You are able to see if they are off-track or on-track. By seeing the amount that they need versus the amount they have will help you help them reach their goal.

Custom Goals

For any goals not defined in the above categories, you and your client or prospects can add these goals as custom goals. When you add a custom goal into the dashboard, name it something that they will remember it by. Use the priority slider to designate how important this is. When selecting the priority, the goals will be ranked when presented to you and your client or prospect in the dashboard. Enter the amount of funds they need for this custom goal and the date in which they want to fulfill the goal.

Screen_Shot_2017-11-07_at_8.32.22_AM.png

After pressing submit, the dashboard will show you a chart with a line that you can scroll over. As you scroll along the line, you are being shown the amount of funds they need to reach this custom goal. The idea is for them to have this amount of needed funds by the day of the custom goal. Let’s review how this goal is calculated. Let’s say your client wants to make a custom goal for $100,0000 and inflation is set to 3%.

 Screen_Shot_2017-11-07_at_8.33.05_AM.png

Your client will need $103,041.60 to accomplish this goal in exactly 12 months. Once you have reviewed this chart you can start assigning accounts to the goal. This assignment will show what they have toward the need. You are able to see if they are off-track or on-track. By seeing the amount that your client or prospect needs versus the amount they have will help you help them reach their goal.

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.