Financial Planning Software
The Financial Planner software is primarily geared to Professional Financial Planners who prepare financial plans for their clients.
From simple "know your client" to advanced Financial Planning engagements
The program is designed to allow the user to satisfy the "know your client rule" set down by the Ontario Securities Commission for those clients investing small amounts such as their first RRSP investment and also to take you through the process of preparing a sophisticated financial plan for the average consumer. The average consumer is envisaged as a person who earns an annual income typically ranging from $25,000 to $250,000 per year or even higher.
The "know your client" rule is satisfied by completing the following:
- The client information page
- The Balance Sheet
- The calculation of the Disposable Income
- Optionally, the Acknowledgement page (used by agents placing investment orders)
A sophisticated financial plan assesses the clients current situation, reviews his objectives, identifies problems related thereto, recommends logical solutions to the problems, provides a program for the implementation of the logical solutions and periodic reviews to compare the actual results with the original financial plan.
The sophisticated financial plan is prepared by completing all schedules and subsidiary schedules offered by the program.
A Typical full plan printouts include:
- The Balance Sheet and all its subsidiary schedules
- Cost of living
- Disposable income
- Income needs
- Insurance needs
- Calculation of Planned Asset accumulation
- Detail subsidiary schedule of non-sheltered investments
- Detail subsidiary detail schedule of sheltered investments
- Detail subsidiary schedule of semi-sheltered investments
- Full description of problems and recommended solutions
With the tools provided, a user can answer questions such as the following:
- Would I be able to retire at 60, 65 or some other retirement age goal?
- How are taxation issues affect the after tax position of my family?
- Can I finance the education of my children? A vacation? A Car?
- Which RRSP maturity option should I choose and what’s the overall effect? RRIF/LIF/Annuity?
- What investments and returns would I need to increase my net worth and sustain a chosen life style during retirement years? How would they grow over time?
- What’s the minimum life insurance I need?
- How can I accumulate wealth for my family and my eventual beneficiaries?
- What income level would be required at retirement? At my death or my spouse’s death?
It also allows the Financial Planner to analyze and document the following:
- Cash-flow management issues and recommended solutions and strategies. As an example, cash-flow problems may be caused from excessive non-liquid assets and insufficient disposable income.
- Taxation problems and recommended solutions and strategies such as maximizing RRSP contributions, employment expenses, income splitting, deductible debt interest, etc.)
- Investment problems and recommended solutions and strategies such as asset allocation as related to age, net worth, ability to sustain losses.
- Risk management problems and recommended solutions and strategies (Disability and general insurance such as auto, home and liability insurance, replacement value).
- Estate management problems and recommended solutions and strategies (Capital gains problems, Will and any related family-law act that may override it).
FP screen Shots
Forms and Features
Several charts by year or age provide a visual picture of the financial position of your client and year by year balances of investments.
The program is seamlessly linked to the Visual T1 program making the preparation of the financial plan an effortless task.
Specifically the program will help you determine and document the following for your client:
- Know your client: Lifestyle, goals, objectives, risk tolerance
- Current Net Worth (Balance sheet)
- Cost of living needs today, at retirement, disability or death
- Current tax situation
- Disposable income
- Income requirements at disability, retirement or death in order to sustain
the stated lifestyle
- Income shortfalls at disability, retirement or death based on sources
and level of income
- Life insurance needs
- Overall return and mix of current investments
- Amounts available for debt reduction, insurance or investments
- Rate of return on investments required to sustain normal and planned
- Value of investments at retirement
- Detailed year by year growth of investments to ultimate age based on
- The program determines when investments must be liquidated to support
the chosen lifestyle.
- Impact of planned expenditures such as children education expenses
in future years
- Capital needed at retirement to cover any income shortfall
Additional features and worksheets are provided by the program such as:
- Future value calculation (How much would a dollar amount grow in a number
of years invested at a given interest?
- Present Value Calculation (How much is it worth today?)
- Several Revenue Canada forms related to RRSP/DPSP such as TD2, T1036,
T2033, T2220,T3012, etc.
MS Windows: Win 7,8,10 or compatible