Table of Contents

Welcome and Introduction.............................................................................................................................. 4

Using this Guide .................................................................................................................................................. 5

Session Focus ....................................................................................................................................................... 6

Prerequisites ......................................................................................................................................................... 6

Expectation ............................................................................................................................................................ 6

Session outcomes ............................................................................................................................................... 6

1.0 XPLAN and the Advice Process .............................................................................................................. 7

2.0 Navigating XPLAN ....................................................................................................................................... 8

3.0 Dashboard ..................................................................................................................................................... 14

4.0 Creating a Prospect / New Client ......................................................................................................... 15

5.0 Case Study ..................................................................................................................................................... 18

6.0 Entering Client Information into Client Focus ................................................................................. 22

7.0 Adding a Trust to XPLAN ......................................................................................................................... 31

8.0 Recommending Insurance – Risk Researcher .................................................................................. 34

9.0 Creating Current Position in XTOOLS+ .............................................................................................. 54

10.0 Creating Proposed Scenario in XTOOLS+ ...................................................................................... 63

11.0 Comparing Strategies ............................................................................................................................ 68

12.0 XTOOLS ....................................................................................................................................................... 70

13.0 IRESS Portfolio System (IPS) ................................................................................................................ 76

14.0 Portfolio Modelling (IPS) ...................................................................................................................... 85

15.0 SuperSolver ............................................................................................................................................... 92

16.0 SOA Wizard ............................................................................................................................................. 105

17.0 Merging an SOA Document ............................................................................................................. 108

Welcome and Introduction

Agenda

Using this Guide

This guide has been written and structured to be as easy to follow as possible. To help you to navigate through this guide, a number of symbols are used to help identify key points or sections.

Session Focus

Welcome to the 1-Day New User - Adviser Focus course. This course is aimed at providing  new users with an overview of XPLAN and its various financial advice and administrative capabilities.

In this session, you will understand how XPLAN and the various functions within XPLAN will fit in with your current advice and business practice processes.

The course has been structured in a way that will provide you with an overall understanding of XPLAN as well as how the system can be applied to provide advice to your financial planning clients.

Prerequisites

And have good knowledge of Microsoft Word and Financial Planning concepts.

Expectation

What you can expect from today’s session?

• Demonstrations

• Case study

• Hands on activities

Session outcomes

After completing this workshop, you will be able to:

• Understand XPLAN’s capabilities and functionality

• Navigate XPLAN efficiently

• Enter client details into the Client Focus module

• Use Risk Researcher to provide risk advice to your client

• Use XTOOLS+ to simulate possible client scenarios

• Use IPS to help manage the client’s portfolio

• Use SuperSolver to conduct superannuation and pension comparisons and research

• Use Xmerge to provide recommendations and generate a Statement of Advice for your client

1.0 XPLAN and the Advice Process

1.1 Introduction

Overview

Many advisers use the Advice to Client process to manage the advice process in their business. To enable participants to be able to relate to the different modules in XPLAN, this course is structured along the line of the Advice to Client process.

XPLAN and Financial Planning

The components and tools in XPLAN have been created to support and complement the process of providing quality and efficient recommendations to clients.

This course has been structured to complement the stages in the Advice to client process.

2.0 Navigating XPLAN

2.1 XPLAN Overview

XPLAN is a web based financial planning software package that brings together the different stages in the advice process through the use of a number of modules and tools.

XPLAN enables delivery of advice to clients through integrated client management, modelling and portfolio management tools and applications.

The facilitator will demonstrate and take you through each of the modules and tools, and explain their function to you.

2.2 XPLAN Components

2.3 Logging into XPLAN

1. To login, access your designated website by typing in your website address

2. The login page for your website is displayed

3. Enter your User ID and Password and click 
   
   

2.4 Navigating the XPLAN Interface

The XPLAN interface is composed of three areas, the Title bar, the navigation menu, and the Main Page.

Title Bar

The title bar contains a number of links and functions, and is always displayed.
XPLAN, Add and Quicklinks lists:

XPLAN – This button name can be customised and the default name is XPLAN. It contains links to your User Dashboard, News and administration and module functionality (depending on your User Capabilities only some links may display)

Add - allows for creating a new:

• Client

• Group

• Professional Adviser

• Referrer

• Supplier

• User

• Diary Event

• Note

• Task

• Thread

Quicklinks - a customisable list where you can add links that you frequently access. All links in the XPLAN list can be added as Quicklinks.

The Instant Search  icon allows you to search for any key heading within your XPLAN system. Once you have searched, hyperlinks will be shown to take you directly to that location.

Icons

	Notification messages are commonly generated by XPLAN when a report has been generated. The number of unread notification messages displays beside the icon (as shown)
	Open a Time Taken Ticker
	Access XPLAN Help
	Access your Preferences
	Logout from XPLAN

Any time you see  click on the arrow to access additional options and sub menus.

Searching

The Quick Search box allows you to search for entities, notes or tasks.

Navigation menu

The navigation menu displays on the left of the currently accessed Page. It allows for navigation between modules and within the current module. When using a Wizard, the navigation menu can also display the pages within the Wizard, allowing you to move between pages as required.

You can collapse and expand the navigation menu by clicking the expand/contract button:

When collapsed, the current page expands horizontally to fill your web browser.

Page

The current page displays in the Page area.

2.5 Getting Help

Overview

XPLAN has an Online Help function which provides the most up to date information on the different components and tools in the system. Interactive Tutorials are also available for viewing Training Workshops. The Help files also provide updates on all new software versions.

Accessing Help

1. Click on the Help function located on top of the Title bar
   
   
   
   

2. The ‘Help’ screen is displayed

3. Navigate using the menu bar located on the left.

   
   
   

4. You may also want to use the “Search” function available.

Accessing Interactive Tutorials from within the Help Files

1. Select Video Tutorials followed from the menu bar located on the left:

    

2. Click on the workshop you would like to view.

3. A video will start automatically with a chapter menu available from the left side menu bar.
   
   
   
   

4. Click on the workshop you would like to view.
5. Follow the online prompts to view individual videos.
   
   

   Dashboard is the default ‘home’ screen to load. To navigate back to the ‘home’ screen, just click on the site logo. You can also open additional windows by holding down the ‘Shift’ key and click on the logo. ‘Ctrl’ and click will open new tabs. News is also available through a dashboard tab.

   
   
   
   

3.0 Dashboard

3.1 Introduction

Dashboards can be created for:

• Users - User Dashboards allow a user to display information on clients and other users that they can view.

• Clients - Client Dashboards display targeted information for a specific client. They display in Client Focus, allowing you to view a snapshot of client data while accessing the client.

• Referrers - Referrer Dashboards allow referrers to view information about themselves, such as clients they have recently accessed and tasks that are assigned to them.

1. While accessing a client, in the client navigation menu select Dashboard:

2. Click the dropdown box next to the Main tab and select Add Widget.

   
   
   

3. In the Add Widget dropdown you can make your selections.

4. Select the Parameters within the Fields you would like to view.
   
   

• Widgets can be moved to other positions on the screen by clicking and dragging the widget to the desired location.

• A default Dashboard can be created for all users and clients to have the same Dashboard Setting. This is created from the XPLAN menu by selecting Administration Functions > System Settings. You will need the “System Setting” capability to have access to this function.

4.0 Creating a Prospect / New Client

4.1 Introduction

Each practice deals with leads, referrals and potential clients differently. However, most practices have a system regarding the way client information is recorded and relationships with clients are managed.

In this section, we will learn how a new client is created in XPLAN.

Scenario

Robert from the law firm next door has referred Nick and Lynn to you as potential clients. He has given you some information about them.

As they are potential clients, you have decided to create them as new clients in XPLAN.

Client Details

Create Client Work with the facilitator to enter the client’s details. Use your own surname when you enter the client’s name.

1. On the Title bar, click on the “Add” Menu and from the dropdown select Add Client.

   
   
   
   

2. The New Client page is displayed:

   
   
   
   

3. Select Individual and click .

4. In the Basic Information screen, enter the prospect’s details.

   
   
   
   

5. To enter Lynn’s details, tick .

6. In the Category field, scroll down and select Prospective.

7. To enter contact details, click .

8. Enter Nick and Lynn’s contact details and click .

9. Nick and Lynn have been created as new clients in XPLAN. Click on the  button to view the details you have entered.

Summary

You have:

• Created a new client entity

• Created a new partner client entity

• Used an Add Client Wizard

•  To navigate between pages, use the  and  buttons. Changes are saved automatically.

• In the default Add Client wizard the required details for a new client are:

  • Surname

  • First Name

  • Gender

While the required fields can be changed when creating a custom Add Client wizard, it is recommended that the minimum requirements to create a client are the client’s first name, surname and gender.

• Clicking on List > Entire List will give you a list of all your clients.

• 

• Recent is a list of your recently accessed clients.

• Advanced > Advanced Search allows you to nominate criteria to search your database e.g. by age.

5.0 Case Study

5.1 Introduction

In the first meeting, the adviser collects relevant information from clients. This information is then used to formulate appropriate recommendations.

In XPLAN, client information is entered in Client Focus. These details are then transferred to other components, such as XTOOLS+ and Risk Researcher and are used to craft appropriate financial planning and risk recommendations.

5.2 The Clients

The clients for this case study are Nick and Lynn. They are planning to retire in 10 – 15 years and would like to at least self-fund part of their retirement lifestyle. They are concerned that they may not have sufficient funds to do that.

They also wish to ensure that they are investing correctly and are getting the optimal returns for their funds.

Read Nick and Lynn’s details below.

Fact Find Details

Client Details

Employment Details

Additional Information

Risk Profile

Lifestyle Assets

Liabilities

Superannuation

Income and Expenses

Insurance – Held under MLC Super

Total Premium $350pa.

Family Trust Details

Financial Assets for IPS

*Telstra for XTOOLS+ Purposes- Value $15,000 with a cost base of $10,000

Clients Objectives

• Retire in 2027

• Boost retirement savings so that they are able to enjoy their retirement.

• To ensure that their superannuation fund is invested and managed appropriately.

• Tax effectiveness both within and outside superannuation is important to them.

• Nick has indicated that he is interested in getting some income protection.

• They have decided that at this point in time, they will not require any insurance for Lynn.

6.0 Entering Client Information into Client Focus

6.1 Introduction

In this section, you will learn how to enter a client’s personal information into Client Focus. 

Scenario

You have created Nick and Lynn as clients in XPLAN. You will search and locate them, then enter all their details.

6.2 Locating a client

Work with the facilitator to locate Nick and Lynn:

1. On the Title bar, type in Nick (Surname) in the search box and press Enter on your keyboard.

   
   
   
   

2. Nick’s details will be displayed on the search screen;

3. Click on the client to display Nick and Lynn’s Personal Details screen;

You are now in the Client Focus component of XPLAN.

6.3 Navigating Client Focus

Navigating Client Focus is simple. All screens in this component can be accessed directly through the navigation menu on the left.

To edit details in the screen displayed, click on the  button located at the top right corner of the screen.

6.4 Editing a client’s personal details

Work with the facilitator to enter Nick and Lynn’s details into the different screens in Client Focus:

1. In the navigation menu select Key Details > Client Details. The Personal Details \ screen displays. Click  on the right hand side of your XPLAN Key Details screen. Enter the remaining personal details that were not entered when creating the client’s in XPLAN:
   
   
   
   

2. Click .

3. Now click on Contact Details in the left hand navigation menu.

4. To add an additional contact number or email, click ;

5. Enter details:

   
   
   
   

6. Click .

7. Should both Client and Partner share a contact, you only need to enter the detail once and then use the “Copy to Partner” button. You can also copy from Partner to Client if needed.
   
   
   
   

8. Move to the Employment screen.

9. To add Nick or Lynn’s employment details, click . Add their respective employment details and click  once finished.

10. Enter the clients’ Risk Profile, by choosing Risk Profiling > Investment and then .
    
    
    
    

Once you have selected the appropriate Risk Profile, you will need to click on  to bring through the Target Asset Allocation for the Risk Profile selected. Once this information has been populated, click  to save the risk profile. You may set the Risk Profile by individual Clients or for the entire Client Group.

IRESS Risk Profiler – Is a risk-tolerance measuring tool. The IRESS Risk-Profiler questionnaire has been designed to assist financial advisers assessing risk tolerance in relation to financial risk.

6.5 Entering Cashflow Details

1. To enter the client’s current cash flow, in the left navigation menu, locate and select Financial Information > Income and Expenses.
   
   
   
   
2. In the Income section, click  to add Nick’s salary. Click  to link the income to the employment already recorded and then click :
   
   
   
   
3. Follow the same steps to enter Lynn’s salary.
4. To add the clients’ expenses, in the Expenditure section, click  and enter the current cost of living and click .
   
   

6.6 Assets & Liabilities

1. To enter the clients lifestyle and investment assets, in the left navigation menu, scroll and locate Financial Information > Assets and Liabilities
   
   
   
   

2. To add Nick and Lynn’s principal residence, in the Asset section, click Add. In the Type field, select Real Estate and enter the relevant details:

   
   
   
   

3. Enter the value of the property ($650,000) in the Current Value field

4. Repeat the above process for the clients Household Contents ($40,000) and the Investment Property ($450,000).

5. Enter Nick and Lynn’s mortgage, Investment Loan and credit card debt in the Liabilities section.

6. Enter Nick and Lynn’s Superannuation details: Superannuation > Existing.

   
   
   
   

7. Reference information can be entered by clicking on “Edit” and putting in information like Superannuation Phase, Retirement Date and the Client’s current Employer Contribution Rate.

8. The panel to enter the Clients existing Superannuation accounts under is “Existing Fund”, then click on Add.

Assets, Liabilities and Super funds in Client Focus have an option to link to a client’s IPS Portfolio Account for balance updates.

For Super: If the Portfolio Account has already been set-up in IPS, click on the Link button next to the Link To Portfolio Account box under the Details Tab.

For Assets: If the Portfolio Account has already been set-up – Once the Type of Investments and the appropriate Sub-Type have been selected, under the Funds tab, Click on the  button and select the Portfolio Account you wish to link the Asset to. If the Portfolio Account has not been setup, then you can select the  option and the Portfolio Account will now be available to you in the IPS Module.

For Liabilities: If the Portfolio Account has already been set-up, click on the Link button next to the Link To Portfolio Account box on the Details Tab

Once linked, the values of Assets, Liabilities and Superannuation in Client Focus can be easily updated by clicking on the respective Update buttons.

6.7 Insurance

1. To enter Nick’s Term and TPD cover held within his retail super, in the left navigation menu, locate and click on Insurance > Existing > By Policy Owner
   
   
   
   

2. As Nick owns the Policy we will use the By Policy option to add in the details. Click on  to enter details of Nick’s insurance policy information.
   
   
   
   

3. This area is to add details regarding the Insurance Policy. Use the details in the case study above to populate the respective Policy detail fields.

4. To add in the cover details click on the Cover tab and locate the appropriate cover details area. (see below) 

   
   
   
   
5. To add in the TPD cover, click on  under the appropriate cover heading to enter in the clients Cover details.
6. Work with your facilitator to enter in Nicks Life and TPD Insurance. You should have both the Life and TPD cover as per below.
   
   
   
   
7. Work through the remaining tabs to supply policy-specific information where appropriate.
8. Click  at the top right hand side and you should now see the policy details in your Insurance > Existing > By Policy. To view the additional details of the policy, click on the  icon.
   
   
   
   

The By Cover option is normally used if the Policy Owner and the Life Insured are two different entities.

7.0 Adding a Trust to XPLAN

In XPLAN, a client may have a Trust, SMSF or Company also in the database. For convenience XPLAN has the functionality to group these entities to the main client.

1. On the Title bar click the Add button. Then select Add Client.
   
   
   
   
2. Select Trust as the Client Type.
   
3. Click . The Basic Information screen displays.
   
4. Enter the Trust’s details.
5. In the Category list, scroll down and select Prospective.
6. Click . The Contact Details screen displays.
7. For the Trust’s contact details we will use the client’s contact details and link later. Click Next.
   
8. Click  to display the Trust’s details.

The Trust has been created as a separate entity to the clients in XPLAN.

7.1 Linking the Trust to the clients

Entities that have their own XPLAN files, such as Children, Trusts, SMSF’s, or Companies can be grouped with a client. Grouped entities are displayed together in areas such as IPS, to allow for quick access between each entities’ portfolio.

To link the Trust to the client’s file you need to be within the Master Entity’s account details.

1. While accessing the client (Nick), select Administration > Groups > Related Clients in the navigation menu. Client Groups Members management displays.

   
   
   
   
2. Click on . Now click on the  icon next to the Master Entity’s name to add relationships. A pop-up box will appear to select the relationship – select Trust.
   
   
   
   

3. Now click on  button to search for your trust. Type in the name you want to search then press the Enter button on your keyboard.

    

   

    

4. Select the searched entity and click on OK. The Trust is selected so now click on OK to save it.
   
   
   
   

5. The client group will now show. Tick the box next to the Trust.

   
   
   
   

6. Then click on Save. This gives you control over group membership.

Summary

You have:

• Searched for a client

• Edited a client’s:

  • Personal details

  • Contact details

  • Employment details

  • Superannuation details

  • Assets and liabilities

  • Income and Expenses

  • Existing Insurance

• Created a new Trust entity

8.0 Recommending Insurance – Risk Researcher

In this section, you will learn how to use Risk Researcher to carry out risk needs analysis and provide appropriate recommendations for your clients.

Overview

Risk Researcher is a risk comparison tool which provides the following capabilities:

• Risk Needs Analysis

• Qualitative product research

• Premium Comparison and Modelling

Case Study – Assumptions

For this case study, we will use the following assumptions:

We will also be replacing Nick’s current cover within Super with another Life and TPD policy in Super and adding on Trauma and Income Protection.

8.1 Launching Risk Researcher

In the client screen, scroll down the left navigation menu and select the Insurance > Risk Researcher option.

The Scenario Selection/Scenario Index Page is displayed. Click  and type in Nick Full Insurance and click OK.

The entry page into the Client specific area of Risk Researcher is Details, which is where you can input:

1. Personal Details
2. Current Situation information (Existing Insurances and Needs Analysis. Completion of Needs Analysis is optional).
3. Cover Selection (Proposed Recommendations for level of cover)
4. General Options

8.2 Personal Details

In this first Panel, make sure that all detail that has come through from Client Focus is correct.

8.3 Current Situation

There are two tabs in this Panel, there will be the Needs Analysis tab and the Existing tab.

Needs Analysis: If a needs analysis is required, change the dropdown menu to Yes and the ‘Needs Analysis’ input page will open. If and when completed, the Needs Analysis Tab will update and show any surplus or shortfall for the entity’s insurance.

Existing: Any Existing Policies entered in Client Focus will appear under the Existing tab. If there are existing insurance policies to be included in the recommendations (replacement of policy for example) then the recommendation can be made under the Existing tab.

The ‘Review’ tick box will allow you to analyse a client’s existing insurance coverage against alternative products for possible recommendations.

In this Panel and Tab, other Existing Covers can be added if they haven’t been entered into the Client Focus area. There is also a box to be ticked if this product is to be reviewed. This Product Review can be used either by itself or in addition to the needs analysis figures. NOTE: once the “Review” button has been ticked, it cannot be unticked in this Scenario.

8.4 Needs Analysis

Although the Needs Analysis is optional, we will work through it to see how it integrates with the Risk Researcher modelling.

1. In the Needs Analysis tab, change the needs analysis calculator menu option to Yes. The Calculator will automatically open.
   
   
   
   
2. Select Modes and Assumptions
   
   
   
   

Further definitions of the Calculation and Analysis modes can be found in the XPLAN Help menu.

Capital Requirements

1. Click the Liabilities to Clear Hyperlink. Then Click the Import button to import liabilities from Client Focus.

2. Click the Future Expenditure Required Hyperlink. Then Click the Import button to import expenditure from Client Focus. Pay particular attention to the start date, duration and frequency fields in this screen. We’ll use 100% Life and TPD for the number of Years until Lynn turns 70, and 100% Trauma for 5 Years in our example. NOTE: the Budget feature can be used here, which draws on figures from the ABS Household Expenditure Survey and extrapolates client relevant figures based on Client Focus information.

3. Enter $80,000 Medical Recovery Costs into the calculation cells for TPD and Trauma. Press Enter on your keyboard OR click on the “Client Needs” option in the Navigation Menu to update the calculations.

4. Enter $25,000 Other into the calculation cells for Life (Funeral Expenses). Press Enter on your keyboard OR click on the “Client Needs” option in the Navigation Menu to update the calculations.

5. Enter Nick’s Income Protections requirements by clicking on the $0 hyperlink in the Income Protection column. Click Import button to import income details from Client Focus.

   
   

Capital Provisions

1. Click the Disposable Assets Hyperlink. In this page, enter assets that can be disposed of if and when the client dies or is permanently disabled or experiences a traumatic event.
   • Import Assets button – Click on this button to import all assets including Assets  in Client Focus, Superannuation and IPS Investments.

Continuing Income

This refers to income derived (passive or non-salary) that can be used to offset capital requirements in an insurance event.

Existing Insurance

Click the Existing Cover Hyperlink. Then Click the Import button to import existing insurance cover from Client Focus. Make sure the Action column options are set to “Replace”. Otherwise, the Existing Insurances will be included in the Needs Analysis calculations.

Projection/ Funding Period

Selection of projection period and same sex partner allowed (defaults to the funding period entered in Future Expenditure Required if used or Partner Life Expectancy).

We have now completed an Insurance Needs Analysis for Nick.

Understanding Recommended Sums Insured

Risk Researcher provides charts and graphs to help users understand and communicate a client’s insurance need, as well as to provide an overview of the recommended sums insured.

1. Click on

   Charts >Client >Proposed Cover
   This graph provides details of the recommended covers.

2. Click on Charts >Client > Death
   This screen projects how funding of the client’s income needs is met.

3. Click on Charts > Client Dies - Cover
   This graphs shows a comparison of results based on different amounts of cover

Once completed, the Needs Analysis details or any of the Projection Data can be exported to CSV by clicking on the Configuration Cog Icon  and select the appropriate option. Any of the Charts can also be exported and used in any Word document by selecting the  button in the top-right corner of the Panel and select the desired Format for the Image. You can also return to the Details page by clicking on .

The “Current Situation” Panel will be updated with the details from the Needs Analysis. Head to the “Existing” tab and select the “Recommendation” for the Client’s existing cover. For this example, select “Replace”, which will increase the Shortfall by the amount of the existing cover.

8.5 Cover Selection

This Panel requires identification of the cover types and amounts.

In the Select Cover Required menu, select the option Life with linked TPD and click on the button to enter more detail about this particular cover in the new window.

In this case, we will dial the Life cover amount up to match the TPD amount, otherwise all products will reject due to inability to recommend more TPD than Life cover under the one Policy.

The Cover Panel (Life with Linked TPD) required you to identify the Life Insured, Sum Insured, TPD Definition, any Loadings, the Premium Structure and whether the TPD is Flexi-Linked.

The Cover Options Panel allows the identification of Premium Frequency, application of any weighting profiles, multi-life policy discounts, and the age to which the premiums will be modelled.

The Options Panel allows the inclusion or exclusion of any provisions relevant to the type of cover being added.

Once these panels have been amended accordingly, click on . These steps should be completed for as many covers as being recommended.

NOTE: A Save & Quote function is available on the Details page within Premium Modelling.

This button allows users to go directly to the premium results, rather than having to exit out of the existing page and then manually navigate to the premium comparisons.

Work with your facilitator to add in the Cover Selection Panel for the Trauma and Income Protection covers.

8.6 General Options

This final panel allows application of some other policy level assumptions for the overall policy recommendations being modelled.

Once all panels have been updated as required, click on . This will progress through to the Premium Modelling > Premium Estimates page.

8.7 Premium Estimates (Research and Selection of Products)

Task

We have carried out a needs analysis for Nick’s Life, TPD, Trauma and Income Protection requirements. We will now structure the most appropriate cover for Nick and to do some comparison of premiums based on the type of cover, structure, and features that we are recommending.

Structure and Features of Policy

As stated in the Case Study Assumptions, we are recommending the following structures:

• Life and TPD within Super

• Trauma – Stand alone

• Income Protection (Agreed Value) – Stand alone

Premium Estimates

1. To get estimates of premiums for the above recommendations, click on Premium Modelling > Premium Estimates located in the left menu bar.

   • A list of all available products and indicative premiums for the different policies will be displayed.

The product list in this example has been separated into 3 structures on 3 different Tabs; Life with linked TPD, Trauma (Stand Alone), and Income Protection (Agreed Value). These are all tabs at the top of the page.

There is also an additional tab labelled “Package – Client”. You are able to identify which covers out of those generated in the Details page you wish to package together and the indicative premium for those packaged covers (Multi Policy Discount).

The polices that you view on the premium estimates page can be filtered based on settings under the  menu in the top right corner of the page.

Click on this button and select Advanced Filter, which will bring up the filter options window.

Make the following changes within each of the following Cover tabs:

1. Slide the Score Filter chart for both Core Provisions and Supplementary Provisions to a score of ‘50.’
   
   
   
   Ensure ‘Show All’ is selected within Product Selector.
   
   
   
   NOTE: You can select/deselect products from the list of “Eligible Products” at the bottom of the window. This will only bring through the Selected Products for evaluation and selection.
   
   
2. Once filters have been identified, click on . Now only the eligible products based on the selected filters will be displayed.

Under the Action Column, there are a number of buttons available for selection by clicking :

• Calculation Notes - displays notes and assumptions on the specific product and its premium.

• Product Summary Report.

• Commission - used to change the commission structure from the default.

• Stepped vs Level – Displays stepped vs Level Premium Chart.

• There is an additional option in the Income Protection screen, which displays the difference in premium between Agreed Value and Indemnity Policy.

• Policies that do not fit the desired criteria are represented with  in the premium column. Click on the icon to view reasons why the product is not available for selection.

Clicking on some of the column headings allow you to sort the products on the list. For example clicking on the “General Score” heading will sort the highest rated to lowest rated products based on the ‘Neutral Weightings’ setting previously allocated.

Under the ‘Report’ menu button there are a number of options available. Each produces a PDF Report and is sorted according to how the list is currently sorted as per the previous point:

First Year – Contains all products on the Premium Estimate list and details the annualised First Year Premium.
First Year Summary – Same as the First Year report, but there is less detail about the cover being quoted.
Cumulative – Similar to the First Year report, but shows the cumulative premium between now and the Age selected when identifying the cover amounts back in the “Details” Page. (e.g. You will have paid $44,582 in premium between now and Age 60 if you take this policy).

Projection 5 Yr Intervals – Shows premium per frequency at Age Next Birthday and then at 5 year intervals for 6 intervals.

Ratings Comparison – shows how each of the products in the list compares to each other against the Core and Supplementary provisions for the particular insurance cover.

Under the ‘Actions’ menu button, there are a number of options available. These reports are viewable on screen with the option to extract the information into a PDF Report by clicking on the Report button once you have selected an option:

View Projections – Shows the premiums per frequency to the Projection Age, including the Cumulative Premium for all Products.

View Graphs – shows a graphical representation of the premiums against other products. You can change the products being compared by clicking on the Select button, and change the graph using the drop-menu in the lower left corner of the screen.

Compare Features – Shows a table of the Core and Supplementary Provisions that are available in each product.

Compare Ratings – Gives an interactive table of the Core and Supplementary Provisions and Ratings for each of the products. Provisions can be clicked to get further definitions of the provision and rating criteria, and the specific product rating can be selected to give the Policy Extract for that Product that refers to that specific provision.

Compare Medical UW – shows the underwriting required for each of the products based on the type and amount of cover being modelled.

Compare Other – allows comparison between product’s C-MAP (Claims Management Analysis Program) score and their S&P Rating. The C-MAP rating is an industry-standard rating of the effectiveness of the underwriter’s claims management processes and service.

Advanced Filter – We have already covered in the previous activity.

Ticking a box in the Rec column selects the product you are recommending for the client.

You are able to validate a premium for particular products by using the Premium Validation icon . This will confirm the calculated Premium provided on the Premium Estimates page with those calculated by the specific product provider, and also provide you with a pre-populated quote from the Vendor’s Quoting Software via the Risk Researcher tool which can be used in the actual insurance application process.

If login details for the different risk providers are entered into the Settings>Validation Settings section, when Validations are completed a copy of the quote will be saved under your login for use at a later stage – i.e. when a Client wants to proceed with your recommendations.

8.8 Recommendation – Selection of Products

Make sure you are on the Premium Modelling/Premium Estimates screen.

1. Work through the tabs for the cover that we are recommending and select the products to recommend by ticking the Select box:

   
   
   
   

2. Once a product has been selected on each of the Cover tabs, click on  to progress through to the Recommendations screen.

   This screen shows the Products that are going to be recommended, and a Bar Graph summary of the policies the client Needs and will Have.
   
   
   
   

3. Under the Actions menu button, there are additional actions to complete prior to finishing the scenario. This can be used in preparation of Advice documents.
   
   
   
   

Fee Disclosure – Allows the detailing of the commissions being received from each Product

Notes – Any additional information about the Products that you may wish to note and include in your Advice Document.

Recommendation Details – Separate panels where the User can enter verbiage around why each product is suitable for the Client.

Replacement Advice – Should be used where products are recommended to be replaced. This allows information to be entered regarding the:

• Costs of replacement

• Reasons for Replacement

• Differences in Benefits, and

• Other Consequences of Replacement

Scenario Reports – If any reports have been generated while completing this scenario, they will automatically be saved in this folder. If no reports have been generated, then this folder won’t be visible in this Actions Menu.

Advice Record - An Advice Document can be merged by completing the Advice Record Wizard

Compare with Existing – Product Comparison between the recommended insurance policy and the clients existing insurance policy.

Manual Recommendation – Allows you to enter details of a quote made outside of Risk Researcher. This will allow you to enter all the relevant details for your advice production from within XPLAN.

Quick Merge – Generate any documents that have been created as a Quick Merge option such as a Statement of Advice.

8.9 Implementation

Once the clients have accepted the recommendations, the policies can be either recorded and/or implemented i.e. recorded as Recommended/Inforce in the Insurance section of Client Focus.

1. Click on the  button under the Record column. Select the most appropriate option, either Record or Implement, both with an option to edit. In this case we will select Record.
   
   
   

   These options will transpose the information in the particular Policy over to the Client’s Insurance Details section, eliminating the need for double-entering information in XPLAN.

   The Plan Name, Underwriter, Policy Status, Sum Insured, and Premium amounts will have prepopulated from the Risk Researcher scenario.

Record will set the Policy Status in Client Focus to “Recommended”. Implement will set the Policy Status to “Inforce”.

8.10 Risk Tools

The Risk Researcher Risk Tools allows you to:

• View Cover Availability – if a client has a certain budget to work within, you can enter the premium amount and see how much cover they could get based on that premium under either Stepped or Level premiums.

• View Superannuation insurance coverage

• View Medical Underwriting Limits

• Generate a Requirements Questionnaire

• Compare Agree Vs Indemnity Income Protection cover

• View products based on provider Insurer Services

• View statistical risk probabilities with the Life Risk Calculator

• View Option Availability

• Generate Waiting / Benefit Matrix

8.11 Qualitative Analysis

The Qualitative Analysis option in the left menu bar provides access to the various tools:

Compare Features

Compare Features allows you to generate a list of insurance products that meet multiple Feature Requirements. This allows you to eliminate products that do not match your client’s needs.

1. To access this module click on Compare Features in the left hand navigation menu.

2. In the top dropdown menus, select your client’s primary Occupation, the type of policy you wish to compare and the client’s gender and the Package Type.

3. Select the Features you wish to include in your client’s insurance cover by ticking the checkboxes relevant to the Core Provisions and Supplementary Provisions.

   
   
   
   

4. Select the “Eligible Products” tab. A list of products matching the selected Provisions will display.

5. Select the “Expired Products” tab. After selecting any expired products the client may have, click the  add button.

6. Click the  button. Details of the provisions that each of the ticked eligible products have will be displayed.

7. Click the  button to generate a PDF output of the Features Grid.

Compare Differences

This tool allows the illustration of the differences between 2 or more products (very helpful when trying to illustrate what a Comprehensive Product has that a Basic Product doesn’t – especially with the same provider).

1. In the Cover Required Panel at the top of screen, firstly select the Cover Type for comparison.
2. Then select the products to compare from the dropdown boxes. Click the  button to add.

Compare Ratings

1. To access this module, click on the Compare Ratings option under Qualitative Analysis. The Compare Ratings screen is displayed.

2. Enter the required details for the client and policy in the tabs.

3. A list of products meeting the above criteria is displayed. Expired Products can also be selected so a comparison can be made if a Client currently holds an Expired Product and you wish to display the benefits of upgrading to a current policy.

4. Select the following products for comparison:

   • CommInsure – Personal Insurance Super – Life care

   • ING life – One Care (Super)

   • AMP Flexible Lifetime – Super

5. Click on the  button. A Rating report is displayed. This report can be sorted based on Core Score or Alphabetical Order.

6. By selecting any option in the left-hand column, a description for that cover and definition of the ratings criteria is displayed.

7. The Rating Grid can be printed in PDF format from by clicking on  in the Ratings Grid window.

Expired Products are also in this list. Current Products are at the top in alphabetical order, then Expired Products at the bottom.

Again a PDF report can be generated by clicking on the button at the top of the page.

Rating Benchmarks

To access this module, click on the Rating Benchmarks option. The Rating Benchmark screen is displayed.

The Rating Benchmark sorts all insurance products by rating within a selected evaluated provision. Select benchmark and provision as follows:

The results will be sorted into their respective ratings

To print a PDF report, click on .

Policy Extracts

To access this module, click on the Policy Extracts option.

This module allows users to select an underwriter’s products and view policy ratings, research notes, extracts, product specifications and underwriting limits.

Enter details as below:

Click on the 3 tabs to get more information regarding the policy and underwriting requirements.

One on One Comparison

The One on One Comparison module provides you with the ability to directly compare two products, provision by provision, to find the information you need and generate a range of reports. It allows you to compare policy extracts and research notes between different types of policies from different product providers.

1. To access this module, click on the One on One Comparison option in the navigation menu.
2. Select the type of policy you wish to view.
3. Select the Provision you wish to view.
4. Locate and compare 2 policies. In this example we have selected an active policy and an expired policy:
   
   

    

   
   Note that the policies are listed A-Z active and then A-Z expired within the drop down list. 
   A report showing the strength of the 2 policies as well as related policy extracts is displayed.

   To print a PDF report, click on .

Compare Policies

This module allows users to compare policy extracts, research notes, and features between 4 different types of policies from different product providers.

To access this module, click on the Compare Policies option.

1. Select a cover type.

2. Select an evaluated provision.

3. Select your products to compare. After locating each product to select, click add button to add the product to the comparison table:

   
   
   

   
   The information displayed can be printed in a PDF format by clicking on the Report function.

8.12 Knowledge Base

• Risk Research Central provides the latest updates on products, insurance industry legislations and trends.

• Risk Continuum provides a history of changes to insurance products.

• PDS Download is where PDS’s from the different providers in the system are available to be downloaded.

• Financial Strength Ratings provides descriptions of the ratings used to describe an insurer’s financial stability.

• References provide some documents specific to Risk Researcher methodology as well as some other reference materials.

Summary

You have:

• Performed a Needs Analysis for your client

• Recommended an appropriate Insurance products for your client

• Learned how to use the research tools available

9.0 Creating Current Position in XTOOLS+

9.1 Introduction

Overview

XTOOLS+ is a powerful strategy-based generic modelling tool that can be used to model and compare cashflow and projections. It enables users to create and compare multiple financial planning scenarios for a client. These scenarios can be projected for up to 50 years.

The XTOOLS+ module is used to analyse a client’s current position as well as proposed scenarios. All information regarding a client’s income, taxation and projected assets value that populates the Statement of Advice is drawn from the XTOOLS+ module.

Cashflow, Asset and Liability Model (CALM)

XTOOLS+ features our flagship strategy-based generic modelling tool, CALM. CALM provides holistic analysis of your client's objectives, cashflow and investments to analyse and model financial planning strategies, across multiple entities.

We will start with creating the clients Current Situation in XTOOLS+ and use this to build our recommendations later in this module.

9.2 Navigating XTOOLS

The four main components of XTOOLS+ are below:

9.3 Entering current position in XTOOLS+

Scenario 

Nick and Lynn’s personal and financial information has been entered into the Client Focus module of XPLAN.

The adviser is currently at the stage where he/she is ready to create the client’s current cashflow in XTOOLS+.

Launching XTOOLS+

1. In the navigation menu select, XTOOLS > XTOOLS+> CALM

2. Scenario Selection screen is displayed

3. Type Current Scenario and click Create Scenario.

   
   
   
   
4. The Input > Basic Details screen is displayed

Basic Details

In the Basic Details screen Confirm Nick and Lynn details:

Pay special attention to the client’s Date of Birth, Marital Status, Retirement Date.

• Projection Start Date: Default is start of current financial year (recommended) NB: Any date other than the start of the financial year will pro-rata the first years results.

Users have the option to use Specify Future Key Dates field to mark important dates such as a specific retirement date, strategy, or selling a property. This will split the year used in the Key Date into 2 periods. Leading up to the Key Date and following the Key Date. If you use Key Dates you will get an option to Annualise Net Cashflow.

1. Client basic details are imported into CALM. An Import Wizard is available to select other Client Focus and IPS information to import. NOTE: there is a Select All/Deselect All button at the top of each column.
   
   
   
   
2. There are 2 ways of navigating the Input screens; users can either use the  or  buttons, or selecting the specific page from the navigation menu on the left hand side.
   
   
   
   

Income and Expenditure

1. Click Next or use the navigation menu to move to the page Individual > Cashflow > Income and Expend. Depending on whether the Import Wizard has been used, Nick and Lynn’s income and expenses may have been transferred from Client Focus.

2. If not simply add the specific incomes or expenses by changing the drop menu option.

   
   
   
   

Please note that you do not need to enter any income that is dependent on an asset (e.g. Dividends and Interest) in the Income and Expenditure page. This is entered when inputting the detail of the asset.

Similarly, you do not need to enter any repayment details of loans, nor do you need to enter superannuation contributions as a ‘pre tax expense’. These are picked up in other areas of XPLAN, as they relate to an asset or liability that you are modelling using CALM. Therefore, you need to ensure that any cost of living expenditure is entered net of these items (e.g. if a client discloses that their cost of living is $50,000 per annum, however this includes $20,000 of loan repayments, then you would enter $30,000 as their cost of living as the $20,000 in loan repayments is entered in the liabilities section).

To withhold tax from a cashflow perspective click on the Withheld PAYG Tax hyperlink and select either Yes or Custom. If Custom is chosen you can set tax withheld for each income individually.

Assets

1. Click on Assets > Holdings from the navigation menu.

2. Follow the steps below to add Nick and Lynn’s assets:

Adding the Westpac Bank Account ($45,000)

1.  Click Add Investment, scroll down and select Class: Domestic Cash.

2. Enter the following details:

   • Owner: Joint

   • Description: Westpac Bank Acc.

   • Value: $45,000; Cost Base: $NA

   • CGT: N/A

   • Centrelink Exempt: No

Adding the Telstra shares with dividend being reinvested

1. Click

   Add Investment, scroll and select Class: Domestic Equity.

2. Enter the following details:

   • Owner: Client

   • Description: Telstra

   • Value: $15,000

   • Cost Base: $10,000

   • CGT: Yes

   • Centrelink Exempt: No

3. To reinvest income from the Telstra shares, click on Asset > Income in the navigation menu

4. Select Add Reinvestment Period, scroll down and select Telstra.
   
   
   
   

5. Click through to Assets > Rates and Fees and ensure the Growth, Income and Franking Rates are appropriate for the investments. If not, change the System dropdown menu and select Custom, which allows these fields to be altered.

Principal Residence and Investment Property

1. To enter details of Nick and Lynn’s Principal Residence, click on Property > Holdings in the left navigation menu
2. Select Add Property, scroll and select Principal Residence. Enter details of this property. Repeat this process to add the Investment Property.
   
   
   
   
3. Go to Property > Rate and Fees and enter a Growth rate of 3% for both properties and $9,000 Rental Income (pa) for the Investment Property. No other Fees or expenses at this stage.

Home Contents

1. Entering details of Home Contents, click on Non-Financial > Holdings
2. Select Add Non-Financial Assets, scroll and select Home Contents. Enter details of this asset (Joint, $40,000).
   
   
   
   

NOTE: There is an indexation field here. You can input a negative percentage figure and XTOOLS+ will model it as a declining value.

Superannuation

1. Entering details of the clients Superannuation, click on Super > Key Info. Confirm the following details (Check Eligible Service Date is commencement of employment.)
   
   
   
   
2. Click on Super > Accumulation and enter the clients super balances.
   • Nick’s balance is $350,000 with $50,000 Non-taxable.
   • Lynn’s balance is $118,000.

Also make sure to include the Insurance Premiums of $350p.a. at the bottom of the page, and change their investment profiles to “Balanced”.

Liabilities

1. To enter details of liabilities, click on Liabilities > Loan Details

2. Click Import button to import the information from Client Focus

3. Confirm that all information has been transferred accurately (Check the Term, it should be 180 months for both property loans and 60 months for the credit card)

   
   
   
   

4. To enter interest rate for the loan, click on Liabilities > Rates and Fees. Enter 7% in the Interest Rate field for the property loans and 12% for the credit card. Interest is not tax deductible for the mortgage and credit card and there is no regular fee

5. To enter the annual repayment amount, click on Liabilities > Repayments and enter the $2,500 per month or $30,000p.a. for the Home Loan, and the $900 per month or $10,800p.a. for the Investment Loan.
   
   
   
   

6. To associate these Liabilities with a specific asset, click on Liabilities > Associate and select the link is to the Type = Property and Associated Asset = Family Home for the mortgage and select Type = Property and Associated Asset = Sorrento for the investment loan.
   
   
   
   

You have now input the clients Current Position. Let’s look at what this position means for the Clients.

Individual Activity: Understanding Current Cashflow

1. The CALM display screen is displayed showing an overview of the client’s current position
   

2. Go to Display > Individual > Cashflow > Consolidated screen and answer the following questions:

   • How much investment income did the clients receive in Year 1?

   • How much tax did Nick pay in Year 1?

   • Did they have any surplus cash in Year 1?

• To manually allocate surplus cashflow:

  1. Click on  at the bottom of the Cashflow > Consolidated page

  2. In the “Surplus Option” field, scroll and select “Custom”

  3. Enter the preferred option to allocate surplus cash or to draw from in the event of deficit in cashflow.

  4. Once changed, click on Done and the table will refresh with your desired changes.

• To change the number of periods displayed:

  1. Click on 

  2. Change the Projection Period to however long you wish the projections to run for;

  3. Select which periods you wish to view (default is first 10 periods and then no more).

  4. Once changed, click on Done and the table will refresh with your desired changes.

• Information transferred or entered in XTOOLS+ is saved automatically, but changes do not flow back into Client Focus. Any permanent changes to the Client file need to be entered in the Client Focus pages.

• Tax Details (left navigation menu): Taxation offsets and levies can be set

• Indexation (left navigation menu): Indexation of Salary, Tax and Superannuation Contributions can be controlled individually

• Economic (left navigation menu): This is where assumptions as well as tiered adviser fees are entered (if applicable)

• Options (left navigation menu): Allows user to modify the display in CALM

10.0 Creating Proposed Scenario in XTOOLS+

10.1 Introduction

Overview

The XTOOLS+ module enables a planner to formulate and compare various strategies to help the clients achieve their lifestyle objectives. In doing so, planners are able to provide the most appropriate advice to their clients.

Scenario Discussion

For the purpose of this case study, we will recommend that:

1. To roll/consolidate Nick and Lynn’s superannuation to a growth portfolio

2. Nick to make salary sacrifice contributions up to his concessional contribution limit from now to retirement

3. Lynn makes a non-concessional contribution of $1,000 into her recommended superannuation fund until 2027 (Retirement).

4. When Nick is 65 commence an Account Based Pension for him drawing sufficient to fund their retirement needs

5. At the same time, commence an Account Based Pension for Lynn

 Creating a Recommended scenario

1.  Click on the ‘Xtools:Client:Scenario’ name dropdown, and select the Save as option.
   
   
   
   
2. The Save Scenario As box is displayed. Enter details as follow:
   
   
   
   
3. Click . Confirm that the new scenario has been created by checking the
   XTools:Client:Scenario area at the top of the page.
   
   
   
   

Recommendation 1: Change Super Investments

For the purpose of this case study, we recommend that Nick and Lynn rollover their existing superannuation funds to a superannuation fund with a Growth profile.

Rolling over / consolidating super

1. In the left navigation menu, click on Input > Individual > Super > Accumulation
2. In the Investment Profile field, scroll down and select the Growth option for both Nick and Lynn.

Check to confirm that the Total Return rate has changed accordingly.

 Recommendation 2: Salary Sacrifice Contributions

 Nick to salary sacrifice up to his Concessional Contribution limit of his salary into super.

1. Still on the Input > Individual >Super > Accumulation page, find the Increase Salary Sacrifice Contributions to Concessional Limit under the Salary Sacrifice Contributions section of the page. Click on the dropdown menu and change it to “Yes”. This will add the “Period” line once the page refreshes.
   
   
   
   

2. Click on the Hyperlink - From Start to Nick's Retirement, and change the From date to “01 Jul 14 (C:52.3 P:51.6)”, then click on .
   
   
   
   This will salary sacrifice Nicks contributions up to his allowable pre-tax limit.
   
   

Recommendation 3: Non Concessional Contributions

1. Still on the Input > Individual >Super > Accumulation page, enter the following details for Lynn:
   
   • Personal Contributions > Fixed Amount field; $1,000.

When the amount is entered in the respective field, the “Period” line and Hyperlink then appear. Similar to Recommendation 2, Click on the Hyperlink and change the From date to “01 Jul 14 (C:52.3 P:51.6)”, then click on  . Indexation can also be set through this hyperlink.

Recommendation 4: Commence Account Based Pension at Retirement for Nick

Commence an Account Based Pension for Nick when he retires at 65:

1. In the left navigation menu, click on Input > Individual > Pensions > Account > Add Pension and create a new pension called Rollover: Account Based Pension.
   
   
   
   

To confirm that the above steps have been implemented, click on Display > Individual > Pensions > Client. NOTE – There are also Summary and Account Pages available in both the Input and Display Pages. The Summary section uses the previous format (pre XPLAN version 2.10) for setting up Pensions, and the Account section allows the management of all Pension details on the one page for each respective Pension.

Recommendation 5: Commence Account Based Pension at Retirement for Lynn

Work on your own to commence an Account Based Pension for Lynn when Nick is 65.

Analysing our recommendation

Work with your facilitator to locate answers to the following questions:

1. Are Nick and Lynn able to fund their preferred retirement lifestyle?
2. Are Nick and Lynn eligible for Age Pension when they reach Age Pension age?
3. When they are 70, Nick and Lynn would like to tour Africa and would require $30,000 for that trip. Will they be able to fund this from their cashflow?

When initiating Pensions, rollover benefits can be added to new pensions by selecting exact dollar amounts from each component. This can be done by choosing Select Components from the Rollover Type menu

11.0 Comparing Strategies

11.1 Introduction

Overview
Once a number of scenarios have been created, you can compare the scenarios to locate the most appropriate recommendation for the client.

Comparing Outcomes

To compare Nick and Lynn’s current position with the recommended scenario. There are 2 different ways to compare scenario’s:

• A one-on-one comparison can be completed within any of the “Display” pages; or

• Graphical representation comparing multiple scenarios.

One-on-one Comparison

Should you wish to compare one of the Display pages in 2 different Scenario’s:

1. Ensure you are in one of the scenarios you wish to compare, locate the Display Page you intend on comparing.

2. Click on the XTools:Client:Scenario dropdown menu, hover over the “Compare To” option and select the scenario you wish to make the comparison between.

An additional window will pop-up and reproduces the Display Page from both Scenario’s in the one window. This allows an easy top-and-bottom assessment of the 2 pages.

Multiple Scenario Comparison

1. In the left navigation menu, click on Scenario Index
2. The Scenario Selection screen is displayed
3. Click on  located at the top right
4. Tick both scenarios and click on .
   
   

This will produce a number of graphs comparing different factors of the selected scenarios.

• To copy the graphs, click on the  download button , and select a file type to save it as (PNG is the most common option).

• Users are also able to export a data file from CALM to a local directory and re import the file at a later date.

Summary

You have:

• Entered your clients Current Financial Situation into XTOOLS+

• Used XTOOLS+ to make the following recommendations:

  • Additional super contributions

  • Account Based Pension for Nick at retirement

  • Account Based Pension for Lynn at retirement

• Compared the Current Situation to your Recommendation

12.0 XTOOLS

12.1 Introduction

Overview

XTOOLS are a range of calculators designed for use by advisers as marketing or client facing tools. The calculators provide powerful and graphical illustrations which are invaluable in explaining financial planning concepts to clients.

Accessing XTOOLS

1. Select a client from Client Focus, in the left navigation menu, select XTOOLS. This ensures that the results of XTOOLS are saved with the client’s details

2. The XTOOLS index is displayed. Select the particular tool required. To move to another tool, return to XTOOLS index

Navigating XTOOLS

1. Main sections with XTOOLS are the same as XTOOLS+;

2. Input function – screens for data input;

3. Display function – displays numeric results of the tools;

4. Chart function – display results of tools in graphic form;

5. Target – displays targets provided for the tools;

6. Assumption – displays key and legislative assumptions used for projections.

Calculators

A brief description of each calculator is given below:

Debt > Debt Consolidation

Debt Consolidation allows an adviser to model the consolidation of up to 10 existing tranches of debt to a single Principal and Interest Loan. Existing loans may be credit cards, store cards, or personal loans for any purpose. The tool allows for loans payable at any interest rate assuming monthly repayments.

The tool presents results and allows advisers to easily quantify savings possible in interest, fees and time by consolidating debt at lower interest rates.

Debt > Loan Illustrator

This tool allows advisers to amortise any outstanding loan balance. The tool directly compares actual loan repayments made against the lender's standard loan schedule to highlight savings in interest and time.

An existing loan can be modelled and the effect of the following demonstrated:

• additional regular repayments

• commencement and regular fees

• forward interest rates to quantify the effect of rising or falling interest rates

• lump sum repayments or additional draw downs

In addition, Loan Illustrator can automatically amortise the outstanding loan to a specified early repayment date. The tool will automatically determine the additional repayments required to extinguish the loan by the specified date.

Insurance > Needs Analysis

Insurance Needs Analysis is a protection based analytical tool for assessing insurance needs. It takes into account projection term and survivor liquidity in each future term when calculating Required Insurance.

Investment > Direct Property

Direct Property allows an adviser to isolate the effects of direct property investment in
relation to capital, tax savings and cashflow. Up to four properties may be catered for, with the associated gearing also considered. The loan details are customisable for added flexibility in relation to term, repayments type and deductibility.

Ownership may be apportioned between client and partner for each property, and each property may be current, purchased now or in a future year. Principal residences may also be accounted for by identifying them as non-taxable property.

Investment > Education Funding

This tool can be used to determine adequate savings to fund education expenses. It
allows for primary, secondary and tertiary education expenses for up to 5 children
explicitly.

Education expenses are funded directly via an investment fund. Education Funding caters for one-off education expenses and funding from sources other than an investment fund, such as salary.

Appropriate levels of funding can be quickly determined by optimising the initial investment amount or the amount of regular savings.

Investment > First Home Saver

The First Home Saver XTOOL allows advisers to model and compare client's saving for a home deposit in a First Home Saver Account in comparison to saving in a regular asset. Government contributions applicable for the First Home Saver account are calculated taking into account indexed thresholds and account balance caps.

Additionally, the First Home Saver XTOOL calculates the change required in contributions from the client in order to achieve their savings goal in the specified time frame.

Investment > Instalment Gearing

This tool can be used to illustrate the benefits of a long term instalment gearing strategy, including the ability to maintain the gearing at a constant level. Utilising various risk profiles or specific asset classes, the tool allows analysis of the effects on capital, cashflow and taxation. Ownership is fully customisable with the ability to hold investments individually, jointly or split disproportionately between members of a couple. Various fees and interest rates may be also accounted for.

Investment > Profiles

This tool is intended to help quantify the characteristics of the investment profiles and related assumptions adopted by the licensee group. It provides a study of the assumed risk and return properties of the standard investment profiles.

In doing so, the tool models a regular savings plan assumed to be invested in a portfolio with asset allocation equal to that of the investment profile. The illustration can be made relevant to an individual by allowing for actual balances and ongoing savings as part of a regular savings plan.

Investment > Savings

The Savings XTOOL is for calculating how much a client should change their contributions in order to meet a savings goal.

Lifestyle > Lifestyle Goals
XPLAN’s Lifestyle Goals is designed specifically for the financial planner who wants to use an illustration tool to aid goal setting, strategy and review discussions with their clients. Lifestyle Goals offers bold display screens which feature one-click changes to strategy and input without needing to navigate away from the main results screens.

Retirement > Allocated Pension

This tool can be used to illustrate both a new and an existing allocated pension. Utilising various risk profiles or asset classes, the tool allows analysis of the effects on capital and tax position over the long term. With the ability to allow for reversionary beneficiaries, Pre ’94 and disability pensions, this tool aims to covers all aspects of this popular type of income stream.

Retirement > Life Expectancy

The Life Expectancy XTool has been designed to simply investigate life expectancy in more detail. Based on the client’s age and gender, the XTool will determine the client's expected future lifetime. The probability of survival (based on life tables) to future ages is also available.
The purpose of the tool is to put financial objectives in the perspective of life expectancies, particularly relevant when discussing needs and objectives. The Life Expectancy XTool uses the most recent Australian Life Tables.

Retirement > Lump Sum Vs Pension

The Lump Sum vs. Pension XTOOL allows you to show clients a comparison of the effects of retaining superannuation benefits in an account based pension with pension income drawdowns, versus an accumulation account with regular drawdown lump sum payments of the same amount.

Key features of this XTOOL include:

• Custom timing of pension rollover, and initial and outgoing income drawdown options

• Customisable return rates and fees for the accumulation and pension products

• Tax effect calculations on lump sum and pension withdrawals to determine net earnings

• Comparison of total withdrawals for both scenarios to ensure that needs are satisfied

• IRR calculations for both 'Lump Sum' and 'Pension' scenarios. Internal Rate of Return calculation is done using the calculated cumulative NPV based on net earnings (minus fees and taxes).

Retirement > Retirement Funding

For a client or client couple, this tool enables the adviser to analyse and present the
suitability of existing retirement funding. The projection of retirement wealth can be
summarised graphically, and quantified by simulating the likelihood of achieving financial objectives. As well as catering for retirement goals such as expenditure and estate capital, this tool incorporates education costs. Often, funding child education and retirement are seen as opposing goals. Retirement Funding allows advisers to easily demonstrate how education and retirement goals can both be met.

Retirement Funding quantifies the effect on specified financial objectives of:

• increasing retirement savings

• different investment profiles on expected returns and volatility

• saving sooner rather than later

• lump sum savings/withdrawals

• paying an allocated pension

• optimising entitlements

• adopting a contribution to spouse strategy

• eligibility to receive income support, including age, blind, disability and service

• pension and partner allowance

Retirement Funding accumulates assets for the purpose of providing retirement income. The focus of results is not necessarily on dollar values, but whether financial objectives can be met over the projection period.

The projection period may be limited to the longest life expectancy or a selected timeframe (expressed relative to life expectancy).

Depending on the level of accuracy required and the data available, Retirement Funding provides either a simple or detailed analysis. Detailed analysis allows the advisor to state how the funds will be used in retirement, together with a full analysis of the taxation consequences. Simple analysis assumes that all retirement benefits are taken in cash, and no taxation consequences of the withdrawal are considered.

Retirement > Super Projection

The Super Projection XTOOL allows you to compare the performance of a client's existing superannuation plans against up to four replacement plans.

Retirement > TTRAP

The Transition to Retirement XTOOLS gives you the ability to model and assess the benefits available to clients from accessing superannuation as an income source but continue working in some capacity and topping up their retirement savings.

With the ability to give an in-depth view of tax, income stream(s), long-term retirement savings and the ability to meet expenditure objects, the TTRAP tool gives concise yet accurate details of all aspects of this popular retirement and superannuation strategy.

Social Security > Income Support

The Income Support XTOOL allows you to identify which Income Support payments a client or partner is eligible for. Income Support caters for the following payments:

• Age Pension

• Service Pension (DVA)

• Disability Support Pension

• Blind Pension

• Carer Payment

• Newstart Allowance

• Partner Allowance

• Pension Bonus Scheme

• Rent Assistance.

Depending on the Income Support payment types selected, some eligibility criteria or means tests may apply. By default, Partner Allowance will be calculated subject to benefits received by the other member of the couple.

Taxation > Income Tax Calculator

This is intended to serve as a quick tax estimation tool for the current tax year. It quickly allows an adviser to establish income after tax in determining surplus income available for investment. The tool is sensitive to resident tax status and income types such as franked and unfranked investment income. HECS debt repayment and Medicare Levy Surcharge liability are also automatically calculated. For a married couple this tool will present individual assessment as well as couple assessment.

Taxation > Salary Packaging 

The Salary Packaging XTOOL allows you to compare tax and income from packaged and non-packaged scenarios, and the projected difference in superannuation balanced.

Taxation > Tax on Super Lump Sum

This tool quickly allows an adviser to establish the tax payable on a superannuation lump sum, consistent with its respective components. The implications of Medicare, HECS and other income are considered. For a married couple this tool will present individual assessment as well as couple assessment.

13.0 IRESS Portfolio System (IPS)

13.1 Introduction

Overview

The IRESS Portfolio System (IPS) allows you to record investment securities and funds held by clients. In this section, you will learn how enter the client’s existing financial assets into IPS.

Scenario

You will access IPS, create a new Portfolio Account (service) and enter the client’s currently held investments/ financial assets.

13.2 IPS Navigation

The following are some key pages in the IPS module.

Portfolio

• Position - Displays the client’s current situation
  

• Performance – includes Profit Analysis, Benchmark and Progress.
  

• Asset Allocation – Provides asset allocation of holdings
  

• Transactions – Shows transactions that have taken place
  

• CGT – Where modelling on CGT can be done
  

• Settings – To set how you want IPS displayed

Model

• Model – Apply Model Portfolios as a recommendation

• Recommend – Make manual recommendations

• Asset Allocation – View the Asset Allocation of your recommendation

Reports

• Reports – Select and run different Reports based around the Client’s Portfolio information.

Admin

• Properties – Adjust the settings for this client such as Tax Type: CGT Allocation Method and Currency

• External Accounts – View Any Datafeeds that the client has linked to their portfolio

• Cash and Accounts – View Portfolio Account and Cash Account settings

Corporate Actions

• Corporate Actions – Apply Corporate Action templates to your clients portfolio holdings

13.3 Portfolio Accounts

Portfolio Accounts can be used to group investment holdings. For example, if you have a group of securities that you manually rebalance once per year, these could be placed into a Portfolio Account to separate them from securities that are actively traded.

All entities within XPLAN have a Default Portfolio Account.

13.4 Setting up a new Portfolio Account

While accessing a client:

1. On the navigation menu select Portfolios (IPS) > Portfolio > Position. This shows the client’s current position.
   
   
   
   
2. Firstly select the entity that you want to add the Portfolio Account for by clicking on the Entity dropdown menu. We will select Nick.
   
   
   
   
3. In the top right corner of the screen click Add > Account
   
   
   
   
4. Set the following options:
   • Portfolio Account – enter the name for the new Portfolio Account. In this example we have called it ‘Nick Investments.’
   • Include in Corporate Actions – ‘Allow application’ (this defaults to ‘Deny application’ in the case of a platform/when datafeeds apply)
5. Click OK. The new Portfolio Account displays in the list of Portfolio Accounts in the Filter panel.

Work with your facilitator to create another 2 Portfolio Accounts for Super (Nick) and Investments (Joint). That should give you a total of 3 Portfolio Accounts as below.

• Super (Nick)

• Investments (Joint)

   

• Investments (Nick)

Enabling Corporate Actions for a Portfolio Account allows for holdings to be updated by XPLAN when an event has occurred. Such events can include income distributions, share purchase plans, buy-backs or splits. Generally this is disabled for datafeeds.

To view and edit the existing Portfolio Accounts (You can also add new Portfolio Accounts this way):

1. Further down the navigation menu select Admin > Cash & Accounts.
   
   
   
   

2. Make sure you have set the following settings:

   • Include in Corporate Actions – ‘Allow application’ (this defaults to ‘Deny application’ in the case of a platform/ when datafeeds apply)

     

13.5 Adding an Existing Investment

Entering Nick and Lynn’s Westpac bank account:

1. In the left navigation menu, select Portfolio > Position

2. Ensure that Nick & Lynn <Surname> (joint) is selected from the Entity dropdown menu.

   
   
   
3. Click Add > Purchase.
   
   
   
   

4. In the Portfolio Account field, use the dropdown menu and select ‘Investments’.

   
   
   
   

5. In the Investment Code field, click on the Search  button. The Search screen is displayed. To search for a bank account, type in Bank Account in the “Security Name” field and click Search.

   
   
   
   

6. Select the Bank Account option by clicking on the Description Hyperlink. This will give you the Investment Code, Exchange and unit price of that investment product.

7. Enter the relevant details. In this case the Gross Amount ($45,000).

8. Click the Icon for Calculate Units.
   
   
   
   
9. Click , the Edit Holding Details screen is displayed. Enter relevant Holding Details in this screen and click . NOTE: Only use the  if you have more purchases to complete for this investment.

Entering Nick’s MLC superannuation:

1. As Nick is the owner of this account, ensure that Nick is the selected entity (refer Step 2 of previous instructions).

2. Click Add > Purchase. In the Portfolio Account field, scroll and select Nick Super.

3. Next to the Investment Code field, click on the Search  button. The Search screen is displayed. To search for Nick’s MLC super investment, in the Security Name field, type in Horizon 4 and select FND – Australian/New Zealand Managed Funds from the Exchange filter. Click Search.

4. A list of funds will be displayed. Scroll and select:
   MLC LTD - MLC MASTERKEY SUPER HORIZON 4 – BALANCED PORTFOILO (MLC0746AU)
   
   
   
   
5. Enter details of Nick’s MLC Super account, making sure to click on the Calculate Number of Units (as highlighted below).
   
   
   
   

6. Click .

7. The Edit Holding Details screen is displayed. Enter relevant details (e.g. Reinvestment Percentage, Name Override) in this screen and click .

Work with your facilitator to enter Nick and Lynn’s other investments into IPS

• Telstra Shares (Nick)

   

• Perpetual Super (Lynn)

   

• HostPlus Super (Lynn)

   

• Investment Property (Joint)

Remember to create a Portfolio Account to enter Lynn’s Super details into and the investment property can be added into the joint Investment Portfolio Account.

• Ensure that you create separate Portfolio Accounts for different tax structures

• Exchange codes: ASX / FND / UNL

• When adding a holding, the investment may not appear in the Position section if there are no units.

• To set up unit pricing for generic products – XPLAN>Portfolio Functions>Products - view/edit products

• You can use the wild card to search *

• In our scenario ensure that the No aggregate option is selected as Aggregate Portfolio Accounts/GICS amalgamates 2 holdings with the same code or GICS into one while No aggregate shows all the holdings separately

• HostPlus in this case study has been setup by the IRESS training team. Generic / non listed products are setup by the Site Administrator. Once a product is created it cannot be deleted.

• Ensure that transaction status is set as either Actual or Unconfirmed transactions in the investment purchase screen.

  
  

Note that calculated is strictly reserved for datafeed transactions or corporate actions.

Summary

You have:

• Accessed a client’s portfolio

• Created a new Portfolio Account

• Searched for an investment product

• Added an investment product to a client’s portfolio

13.6 Datafeeds

Overview

Datafeeds allow for information to be imported into XPLAN from third-parties, such as fund managers by importing portfolio transactions into client portfolios.

There are two types of datafeeds:

System Datafeeds – The Datafeed stream passes through the IRESS Trusted Network (ITN), where IRESS manages the retrieval and default processing of datafeed data. This produces a ‘clean feed’ for XPLAN users. Most datafeeds are System Datafeeds.

User Datafeeds - Datafeed files are automatically obtained and processed by your XPLAN server, although the logs of datafeed processing need to be monitored by users for any processing issues. This is the old datafeed process.

14.0 Portfolio Modelling (IPS)

14.1 Introduction

In this section, you will learn to use the IPS component to model changes to a client’s investment portfolio

Overview

Once a number of cash flow scenarios have been created and you have compared the scenarios and located the most appropriate recommendation for the client. You can use the Portfolio Modelling Function in the IPS to model the proposed strategy.

Modelling can be used to apply a preselected holdings arrangement or to remodel a portfolio back to its original asset ratios. Portfolios can be modelled by manually building a portfolio proposal or by applying a model target set.

Scenario

For the purpose of this case study, we recommend that Nick rolls-over his existing superannuation funds to a Colonial First State Investments - CFS FirstChoice Personal Super - FirstChoice Growth Option.

14.2 Recommending Portfolio - Manual

1. In the navigation menu select Portfolio (IPS) > Model > Recommend, then select the entity from the top dropdown menu (Make sure you are viewing Nick’s Portfolio)
   
    
   
   
   Select Recommend to model the portfolio manually. You can apply a previously created Model Portfolio by selecting Model > Model. We will be using Recommend for this Case Study.
   
   
2. Choose the Super Portfolio Accounts from the dropdown selection box.
   
   
   
   Note: We will make a negative adjustment to the MLC Horizon 4 Investment.
   
   

3. Under Adjust column next to the MLC managed fund enter a negative (-) dollar amount for the full amount of the fund. e.g. type. -350028.21

   
   
   
   

4. To add the Colonial First State Super Growth Fund to the proposed portfolio click  at the top right hand side of the screen, and select Holding from the menu options.

5. This will take you through to the Add Holdings screen, where you can add multiple investments to your proposed model. You can simply add the Investment Code and Exchange to the respective boxes, or use the Search  button. The Search button brings up the Security Selection Window.

6. The Security Selection screen is where you search for the fund selected for the client to invest in. In the Security Name field, type *first*choice*personal*growth* (including the *’s as these are Wildcards to use where detail of an investments name is unknown) and click on . A list of funds will be displayed. Scroll and select CFS FIRSTCHOICE PERSONAL SUPER – FIRSTCHOICE GROWTH OPTION – Code FSF0272AU. As you select investments, they are added to the Selected Securities section underneath the Security Listing.
   
   
   
   NOTE: Filters allow the refinement of search results, including Exchange, Security Type, Fund Manager and even Asset Class Percentage. Apply filters to reduce the number of options available for selection and remove to broaden the list as applicable.
   
   NOTE: You can continue to build your list of investments to be bought. Once your list has been built, you can select the Compare button at the bottom of the page and compare aspects of the investments like asset allocation, fees for the investment, and historical unit prices.
   
   
   
   
7. Funds can now be allocated either by Percentage or Market Value. Let’s select “Percentage” and put 100% next to the CFS investment we just selected. Otherwise simply add $1 or 1 unit to get the investment into the Modelling page. The correct amounts can be changed later.
   
   
   

   Repeat steps 4 – 7 for as many investments needed to be added. If you need to add more investments than there are lines in the window, simply click on the Add Entry button to add another line for additional investments.

8. Once all investments have been added to the Add Holdings window, click and the investments will be imported to the Investment Recommendations panel.

You have the option to modify the holdings by a percentage amount, dollar amount or by number of units. This can be done by clicking on the dropdown menu in the adjustment text fields to switch between using percentage, money or unit values.

Note: Net Adjustment shows the total Adjustment Discrepancy as a result of the proposed transactions. This value should be zero. If not zero, further adjustment needs to be completed so that all funds are fully allocated.

You can only use the % allocation option with existing investments.

Work with your facilitator to recommend a new super fund for Lynn.

14.3 Implementation

Available from the Portfolio > Model > Recommend screen

Once an acceptable proposal for changing the client’s portfolio has been finalised in Holdings, the next step is to apply these changes to their portfolio. Implementing can push your recommendation through to other areas of XPLAN such as IRESS Ordering System (IOS), CommPay and eApplications. When the client's portfolio is linked to IOS, implementing the changes will pass these orders through IOS to be executed.

1. Tick the checkbox at the beginning of each security line or alternatively select the checkbox at the top of the list to include all proposed transactions.

   
   
   
   

2. Once all investments have a tick next to them, click on the action icon  in the title bar.

   
   
   
   
3. Select Implement to Transaction. This completes the implementation of recommendations.

4. Click on Portfolio > Position. You will see that Nick’s MLC Super Fund has now been replaced by the investments in the CFS Super Fund.

If you have a Datafeed for any of the recommended products, you will not need to implement this against the clients portfolio, as this will double up the transaction(s).

14.4 Asset Allocation

From the navigation menu – Portfolio > Model > Recommend

The asset allocations of the proposed changes to the portfolio can be viewed, and  compared to a client's target asset allocation by:

1. Under the “Asset Class Allocations” tab the proposed portfolio assets can be viewed as a Table, Bar Graph or Pie Chart, or in Comparison to the client's Risk Profile or Target Asset Allocation. There is also the functionality to view the comparison in a horizontal bar range and also individual investment breakdowns of allocation.
   
   
   
   

14.5 Recommending Portfolio – Model Portfolios

If you are using Model Portfolios (or Target Sets in XPLAN), There is a slightly different method for making the recommendation. Access the Target Set Modelling through Portfolio (IPS) > Model > Model.

Target model sets create a portfolio proposal using a saved collection of securities. They can be applied as a percentage of the total portfolio weight (Portfolio Weight Method), or applied to entire individual portfolio account balances (Current Method). The existing holdings will be changed, with funds being redistributed to match the targets within the model set.

We do not apply a Model Portfolio in this course. This is covered in the more advanced IRESS Portfolio System workshop.

Summary

You have:

• Recommended a new product for your client

• Compared your recommendation to your clients Risk Profile

• Implemented your Recommendation

15.0 SuperSolver

15.1 Introduction

In this section, you will learn to use the SuperSolver component to compare Superannuation products.

Overview

Advising clients on the rollover or consolidation of their superannuation is a key component of the advice process. In today’s environment, a research tool such as the XPLAN's SuperSolver module is crucial to providing a reasonable basis for your rollover advice.

With research data on over 800 superannuation funds, including industry funds, SuperSolver takes the complexity out of comparing and analysing your superannuation rollover advice.

Accessing SuperSolver

There are two ways of accessing SuperSolver, one through the client’s Client Focus and the other from the XPLAN menu in the Title Bar. The differences between the two are important as your options that are available are different depending on the way you access the tool.

Differences between the two ways of accessing SuperSolver

15.2 Accessing SuperSolver from the XPLAN menu

From the XPLAN menu, you will notice a section dedicated to SuperSolver.

Clicking on SuperSolver Functions > Quick Compare allows you to access SuperSolver menu where you can research and compare Superannuation and Pension products. To view and select different plans, click on the  button and use the Search window.

This Search Window groups Plans according to Platform and then Product, while also allowing the use of Filters in refining the list of Plans. The Main Page displays plans and if you click on the Information button, you can access a brief description, contact information and a PDF copy of the PDS for that respective fund.

The other options within the SuperSolver Functions menu (top) can be accessed from the left hand navigation menu on this screen.

Quick Compare

• The Features module allows advisers to compare the features and benefits of multiple superannuation and pension plans side by side. Once 2 or more funds have been selected, there will be a “Show Differences Only” tick box in the top left corner where it can be ticked and only the options that are different between the selected products will show.
• The On-Going Fees module allows advisers to compare the costs associated of multiple superannuation and pension plans side by side.
• The Investments module allows comparison of multiple funds and their investment options side by side. The overall portfolio asset allocation and past performance is displayed.
• The Insurance option will run a quote on the super funds selected in the previous screen for the criteria selected. You are then able to view a comparison of the insurance features of selected Superannuation Insurance Plans.

Research

• The View Plans page will list all researched Superannuation Plans and any Custom Plans you have created.

• The Investment Data page allows a search of all available investment options in super and summarises research for the selected investment

• The Investment Performance module allows you to find investments available in Superannuation that perform at a specified rate of return. SuperSolver will list all investments that match the criteria you are looking for and allow a comparison table and chart of up to 10 investment options to be produced.

• The Insurance Rates and Features module will run a quote on all available Superannuation Insurances for the criteria selected. You are then able to view a comparison of the insurance features of selected Superannuation Insurance Plans.

• Key Features allows you to find superannuation funds based on features. Plans selected here can be added to the Quick Compare > Features.

Tools

• The Create Custom Plan module allows you to set up a brand new superannuation plan from scratch. E.g. you may want to add a Self-Managed Super Fund that it not related to any researched plan.

• The Derive a Plan module allows you to start a custom plan with default value of an existing plan. An example may be that you want to set your business default contribution and adviser fees.

• The Model Portfolio page allows the management of Model Portfolios specifically for use in the SuperSolver Module. These can be created or imported from the IPS module.

• The Transition to Retirement tool allows you to determine what benefit there is for a client implementing this strategy.

Knowledge Base

• The News area provides a historic timeline of plans that have been added or updated within the SuperSolver research database.

• The PDS Library is a repository of Product Disclosure Statement (PDS) for all superannuation and pensions plans found within SuperSolver.

15.3 Accessing SuperSolver from Client Focus

To access SuperSolver for a client, make sure you are in that client’s file and select Superannuation from the left hand navigation menu. This will give you three options to access SuperSolver: SuperSolver, Rollover Analysis Wizard and Rollover Analysis Wizard (Scenario).

SuperSolver is a scenario based super comparison tool.

There is also a Rollover Analysis Wizard and Rollover Analysis Wizard (Scenario). Wizards are a way of organising data entry to create a step by step process. Wizards are customisable and can be made to support many business processes. The Scenario Wizard allows you to save multiple scenarios as well as selecting which entity the advice is relating to. The remaining of the wizard is the same as the standard Rollover Analysis Wizard.

Scenarios can also be locked, freezing information such as ICR, asset allocation and fees. We will be running through SuperSolver for today’s training.

SuperSolver is now following a similar process to that of Risk Researcher, being a single page for set-up of the current and proposed basic information then analysis and recommendation on subsequent pages. This is a different format to the Rollover Analysis Wizard.

15.4 SuperSolver Scenario Modelling

The purpose of Scenario Modelling is to merge information into a document with the details of your Superannuation Strategy for the client. Therefore, when using the scenario modeling area of SuperSolver you should have already performed research on the Superannuation product we wish to recommend.

We’ll select SuperSolver today. We firstly need to create a Scenario. Let’s call this one Nick Super to Super.

The left hand navigation menu shows the series of pages to be completed for this Wizard.

Although navigation is possible in the navigation menu, we will use the buttons in the top of the screen to navigate .

1. The Client Personal Details are entered in the first panel. Most are brought through or calculated from Client Focus, with the Retirement Date field defaulting to the Clients 67th Birthday. Update the Retirement Date if necessary, and keep in mind this information will not flow back into Client Focus.
2. The Current Situation panel – as the name suggests – is for the Clients and/or Partners current superannuation position. For this example, click on the  button and select Client > From Client Focus. Also note that their Situation can be manually built or imported from a previously created Scenario.
   
   
   
   
3. Once the existing Plan/s has been added to the “Current Situation” panel, click on the Action button and select “Edit Existing Plan”. This will bring up another page for editing the plan details such as Investment Allocation, Contribution amounts and Insurance Premiums. On the “Plan & Investment Funds Selection” tab, click on Add Investment and Import Current Portfolio Holdings. Tick the box/boxes next to the funds/s you wish to import and click on OK. Continue through the remaining tabs, ensuring the details are appropriate for the Current position.
   
   
   
   

4. Again using the action icon next to the fund, select “Edit Plan Fees”. The default fees for the existing Super Plan will already be detailed in this section. It is only essential to enter into this section if there are any custom fees applied to the Client Plan (e.g. Adviser Fees, etc.).

5. Moving onto the Proposals panel click on . Note: It is possible to add multiple proposals under the one scenario.

6. Select the Proposal type Client>Rollover/Consolidate Plans. This will present the current Superannuation Plan and allow the selection of how this fund should be treated. Also select the Partner Proposal type.

   
   
   
   

7. Select “Roll Available Balance Out” as the recommendation. Then click on “Add Proposed Plan” and select “Add Plan”.

   
   
   
   

8. The complete list of available Super and Pension plans within your site. The filters on the left side of the page can be used to refine the list of funds. Change the Plan Manager to “Colonial First State”, and select Colonial First State FirstChoice Wholesale Personal Super from the list of available funds. Note: A red dot next to a fund name indicates it is Frozen or Closed to New Investments.
   
   
   
   

9. When the plan has been selected, you will be directed straight to the Investment, Contribution and Insurance window. Under the “Search Results” tab, select Add Investment > Investment Fund
10. Then select the investment for the Proposed Super Plan, and then select the Add button. The search field at the top of the page can be used to search through the investment options.
    
    
    
    After the desired Investment Allocation has been selected, allocate the balance to the respective investments by Dollar figure or by Percentage. Once the total has been allocated, click on the “Add to Plan” and the balance will be attributed across the investments. Then work across the remaining tabs to ensure details are as per desired recommendation. Once completed, click on Save to add the plan to the Rollover/Consolidate Page. You will then be presented with the existing and proposed plans, along with asset allocations and fee comparisons. These selections can be changed should the fee or allocation selections be too far away from profile allocations. Once complete, click on “Save”.
    
    
    
    
11. Back on the Details Page, the action icon (next to the Proposed plan) can be selected to change a number of different options relating to the plan. Things like the Replacement Advice option allow the detail of the differences, reasons and cost implications of the proposed replacements.
    
    
    
    
12. Now that we have populated all the necessary fields for our Scenario Details, Click on ‘Next’ to look at comparisons. Scroll down the page to compare fees, asset allocations and past performance.
    
    
    
    
13. Click Next to view the Projection Analysis as graphical representations. If acceptable, click on Next and progress to the Summary Page, or you can click on Previous to re-work any details that may require amendment.
    
    
    
    
14. Finally on the Summary page, Click on the dropdown menu under the Status column and select the appropriate recommendation (“Recommend and Acquire” in this case), then once the Client has accepted your recommendations, the red button under the “Implement” column can be clicked and the details of the recommendation can be exported to Client Focus.

The  button in the top-right of the page can be used to amend fact find details, enter reasons for recommendations potentially merge a SOA. This is dependent on individual XPLAN site configuration.

15.5 Using SuperSolver (Quick Compare)

Select Superannuation > SuperSolver from the navigation menu inside the client file.

You will see the scenario that you have just created:

You can use the other pages in the navigation menu to research the current and proposed super plans.

Select the name of your Scenario- Super to Super.

Select Quick Compare > Features. You can select specific Super Funds to compare by clicking on  or clicking on  will import the Fund/s involved in the selected Scenario.

Comparisons on areas like Features, On-going Fees, Investments and Insurance can be accessed here. Also areas concerning Super Fund Research, Tools, and the Knowledge Base are also accessible through either this page or through the XPLAN menu in the Title Bar.

Remember that the Scenario Modelling / Wizard should be used once you have completed all the research for your client. Therefore, at this stage in the SoA generation process, the Quick Compare pages should be only used as a reference, not as a research tool.

Summary

You have:

• Used SuperSolver to make a Superannuation Recommendation for your client, including:

  • Investment options

  • Fee Analysis

  • Asset Allocation

• Used SuperSolver to research appropriate super funds for your client

• Generated a report of your recommendations

• Learned how to implement your recommendation to the clients file

16.0 SOA Wizard

16.1 Introduction

Overview

Once the planner has decided on the most appropriate recommendations, the next step is to create a Statement of Advice for that client based on information provided by the clients as well as recommendations from the planner.

One way of doing this is by using the Wizard functionality in Client Focus.

A wizard is a user interface element where the user is presented with a sequence of pages to enter information. You can also use Merge Reports functionality to reach the same result without using the wizard. However, to ensure that all information is present in the Statement of Advice, it is better to perform this task using the wizard, especially if you are writing the Statement of Advice for the client for the first time.

16.2 Launching an SOA Wizard

1. In the left navigation menu in Client Focus, click on Wizard > SoA.

2. To navigate within the wizard we will use the  functions on the top right hand side of the screen or us the navigation menu bar on the left hand side.

   Note: All wizards are different and have been customised to meet your needs. The best practice is to navigate using the  and  buttons and enter all field information into the wizard pages.

3. Once you have navigated through all the pages within the SOA wizard, on the last page of the wizard, the navigation buttons on the top right hand side of the page will display. Click .

4. You will be directed to the next page where you can select the following options.

   
   
   

   • The details entered into the SOA wizard has been saved.

   • View/Edit Entity Details – Will take you back to Client Focus.

   • Restart Wizard – Will take you back to the beginning of the SOA Wizard.

   • Merge SOA – To merge the SOA into a word document.

5. Click on .

   You may be directed to the ‘Variable Substitution’ screen. This screen is where you select the necessary scenarios from the additional modules which you wish to include in your report. Select the next to XTOOLS+ or Risk Researcher or SuperSolver to select the scenario:

   
   
   
   If you do not have the Needs_Analysis scenarios available in the dropdown you will need to click on the name  hyperlink. This will allow you to type the name of the scenario on the Value box, then click .
   
   
   
   

6. Once you have select the scenario, click . The SoA document is generated as a background process. Once completed, you will get notified through the Message Notification .

7. When the SoA document has been created, the message icon displays on the title bar.

   
   
   
   
8. Click  to download the generated SoA report.

• All wizards are different and have been customised to meet your needs.

• Clicking on Save and Exit will save the wizard and take you back to Client Focus.

17.0 Merging an SOA Document

17.1 Introduction

Overview

1. You can create a SOA also by using the Merge Report option in Client Focus. The Merge Report functionally takes you directly into the templates files, where you can select the document to be run.

2.  While accessing a client:

3. On the navigation menu select Merge Report. A list of report templates displays.

4. Select the Report Category > Statement of Advice. Click  for the Statement of Advice Docs. The Select Template Files screen displays.

5. On the Navigation menu on the Left hand side of the screen select Report Setup > Variables to include the XTOOLS+ Scenario and Needs_Analysis Scenario you want to include in your report.

6. Once in the Report Setup > Variable screen select the next to scenario. This will let you select the XTOOLS+ scenario to include in your report.
   
   
   
   

7. Once you have select the scenario, click Execute.

8. If a Confirmation dialog box displays due to missing data, click Yes.

9. The SoA document is generated as a background process.

10. When the SoA document has been created, the message icon displays on the title bar.
    
    
    
    
11. Click  to download the generated SoA report.

Please note that in your office you may have a SoA Wizard in place. This should be the preferred function to use to merge your SoA document.