Engage Tools 

For the purpose of this guide we will be working through two of the seven engage tools so that you get a feel for the input screens and fields. As the engage tools are designed to be to be client-facing and client-friendly, they are self-explanatory, simple and easy to use. By the end of this guide, you will have the capability to utilise the remaining engage tools with confidence and ease.

Planning for Retirement Engage Tool

1. Select Planning for Retirement engage tool from the Client Menu.

2. Type a new scenario name and click Create Scenario.
   
   Tip: It is highly recommended that you keep your scenario name simple and easy to remember.

3. Work through the information on the About Yourself screen and ensure the client details are correct. Click Next.
   
   
   
   
   
   

4. In the Your Superannuation Plan screen, work through all relevant fields. Start by entering the client’s super balance.
   
   Important: If the client has more than one super fund, enter the combined amount of all super funds.

5. Enter the current amount of annual personal contributions and/or salary sacrifice contributions if applicable. For clients who have made previous personal contributions, it is important that these are listed in the section Previous Personal Contributions at the bottom of the screen.

6. Enter the client’s super investment risk profile.
   
   Tip: If the client’s investment risk profile has not yet been ascertained. You can take the client through a risk profile test via the Client Menu.
   
   
   
   

7. Once all details have been inputted, click on Next at the top right corner of the screen.

8. Select the client’s retirement income objectives from the Retirement Income Type menu:
   

   a. % of salary

   b. Specify Amount

   c. ASFA Retirement Standard

   d. Budget
   
   
   Click Next. This will take you to the Retirement Snapshot screen.
   
   

Tip: Click Add Retirement Objective to enter any additional financial goals in retirement that are not factored into the retirement income needs (such as purchase new vehicle every 5 years).

Retirement Snapshot screen

1. The icon on the top left allows you to change data you entered from the previous screens and add additional information, including:
   

   • age pension calculations

   • Non-super assets

   • Non-investment assets

2. The cog wheel icon allows you to view and amend the strategy assumptions such as CPI and projected timeframe etc.

3. The Balance, Contributions, Assets and Projection tabs provide a graphical representation of the client’s retirement snapshot.

4. The table provides an analysis of the client’s retirement goals detailing how much the client could drawdown from their retirement savings at retirement until their life expectancy compared to their desired retirement income.

5. The Your Strategy tab allows you to develop strategies either manually or via the optimisation tool to meet the client’s goals.

Planning for Retirement Strategy Development

This guide will now detail an example strategy for illustrative purposes only.

Scenario one – Client is willing to adjust their investment style, retirement income needs and current take home pay to ensure a specified retirement age.

1. Click on Your Strategy  

2. Select the  icon to reveal the Retirement Objectives page.

3. Change the Retirement Objectives as shown below.
   
   
   
   Do not click Optimise Action Plan as this will optimise the client’s position automatically and change the above inputs including Retirement Age.
   
   We will use the Optimise Contributions tab on the following page.

4. Select the  icon to go back to the Contribution Option page.

5. Select Optimise Take Home Pay from the drop down menu and enter $60,000 as the Target Take Home Pay Amount and then click on Optimise Contributions.
   
   
   
   

6. Go to the results page to review the outcome.

7. Once your client is happy with the proposed strategy, click Next to review the action plan
   
   
   
   

8. Click Finish to end the Planning for Retirement strategy tool.

Transition to Retirement Engage Tool

1. Select the Transition to Retirement engage tool from the client menu.

2. Type a new scenario name in the available field and click Create Scenario.
   
   Tip: It is highly recommended that you keep your scenario name simple and easy to remember.
   
   

3. Once you have created a scenario, you will be taken to the About Yourself screen. Work through the information and ensure the client details are correct.
   
   
   
   

4. Once all details have been inputted, click on Next at the top right corner of the screen.

5. In the Your Superannuation Plan screen, work through all relevant fields. Start by entering the client’s super balance.
   
   Important: If the client has more than one super fund, enter the combined amount of all super funds.
   

   You will need to select the date at which the super balance applies to:

   • As at 1 July

   • As at today
   
   Tip: Ensure that you select the relevant option as this has an impact on the projected wealth at retirement.

6. Enter the current amount of annual personal contributions and/or salary sacrifice contributions if applicable. For clients who have made previous personal contributions, it is important that these are listed in the section Previous Personal Contributions at the bottom of the screen.

7. Enter the client’s super investment risk profile and an assumed pension investment risk profile.
   
   Tip: If the client’s investment risk profile has not yet been ascertained. You can take the client through a risk profile test by clicking on Do Risk Profile Test.
   
   
   
   

8. Once all details have been inputted, click on Next at the top right corner of the screen. This will take you to the Projection screen.

9. Input the details of the strategy, as indicated below:
   
   
   
   

10. Once you have completed the strategy details, click on the Your Strategy button in the top right corner.

11. You can now review the strategy based on your inputs from the following perspectives:
    
    

    a.Wealth at Retirement

    b.Tax Savings at Retirement

    c.Average Contributions

    d.Average Tax
    
    You will also be able to view a graphical representation of the client’s Retirement Savings, Tax Payable, Year 1 Cash and Year 1 Tax by clicking on the relevant tabs located above the graph, as shown below:
    
    
    
    
12. You can also select the Settings icon  at the top right corner of the screen to review additional details regarding the TTR strategy such as:
    

    a) Assumptions

    b) Year 1 Cashflow

    c) Year 1 Tax

13. Once you have reviewed the TTR strategy, click on Next at the top right corner of the screen. This will take you to the Your Action Plan screen.

14. This screen will provide you with a TTR recommendation for your client based on the details inputted in the tool. The recommendation will include the level of pension drawdown, salary sacrifice contributions as well as personal contributions required in order to provide an optimised TTR strategy that will see the client receive their required income* following implementation.
    
    
    
    *Important: The recommendation provided by this tool will be optimised based on the option chosen under the ‘Net Income Required’ field in the Projection screen.
    
    The two options available are ‘Same Take Home Pay’ or ‘Other Amount’ in which the client may stipulate a specific amount.

15. Once you reviewed the recommendations, you can end the Transition to Retirement engage tool by clicking on the ‘Finish’ button at the top right corner of the screen.

XTOOLS+ CALM Engage Tool

The engage modules are a graphical interface for performing single-issue client advice, using the full XPLAN modules for calculations and assumptions. Specifically, the CALM engage module is a user friendly way of displaying your XTOOLS+ CALM scenarios to clients.

The engage module will also allow you to change some basic strategy options within the tool however the major setup is done through the XTOOLS+ scenario.

The CALM engage tool is also viewable with the touch version of XPLAN, making it a great way to show your CAML modelling to clients on a tablet.

To access the XTOOLS+ CALM engage tool

Step 1: Complete an XTOOLS+ Scenario through the XTOOLS menu. Within the XTOOLS+ scenario, you can model all the appropriate strategies that are applicable to the client.

Step 2: Once complete, this scenario will automatically appear under the Engage CALM module.  

Step 3: Once within the Engage module, you are able to view multiple graphs and charts via option 1, while update strategy options under option 2.

The charts you can generate are listed below. You can also view the corresponding tables outlining the values. These are a direct replication of the charts and tables that are calculated in the full XTOOLS+ module.

Within the ‘Your Strategy’ (option 2 above) area of the tool, you’re able to edit a limited set of strategy options. Changing these options will automatically update the graphs and tables both within the engage tool, as well as the corresponding XTOOLS+ CALM scenario.

Within the tool directly you are able to edit:

1. The retirement age of the client / partner

2. The Superannuation or Pension Risk Profile

3. Whether Centrelink’s Age Pension is included in the calculations.

4.

The charts with the engage module are interactive (as are the respective charts within the XTOOLS+ scenarios). You can turn off / turn on different areas of the chart to highlight different pieces of information. For example the below CALM graph can be altered to only show the expenditure line graph, by clicking on the respective legend titles.