How Advisors Compare Scenarios to optimize client outcomes

Your clients have important financial questions that require personalized answers and recommendations.

Common client questions

For example:

• Should they purchase Corporately Owned Life Insurance?
• How can they reduce OAS clawback?
• Can they afford to retire earlier?
• Is it better to take monthly payments for a Defined Benefit Pension Plan or take the commuted value now?

As the Advisor, you can provide truly personalized advice that leads to optimal client outcomes by building multiple what-if scenarios to compare options.We can quickly build multiple plans, compare them, and then ultimately use this functionality to highlight the net difference between where we started and where we’re going.

This is how you can not only improve your client’s outcome but easily demonstrate the value of working together.

This is a highly flexible module that allows you to pick which metrics you wish to compare and highlight. It allows you to change the timeline of your comparisons and you can visually compare metrics with additional charts. Everything we are doing here today is with the underlying goal of optimizing the client’s outcome.

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Case Study details

For today’s Case Study, we are going to meet with our client Korbyn Shields who resides in beautiful British Columbia.

Korbyn is 60 years old, turning 61 in January. He is hoping to retire quite soon and he has come to the office today with 4 specific questions we are going to answer.

• • When is the best time to start taking Government benefits?
  • What is the best asset drawdown timing and order?
  • Does he need to worry about OAS Clawback?
  • What would it look like if his home was downsized?

Base plan data entry details

1. Client
   1. Korbyn Shields
   2. Age: 60 (1964-01-01)
   3. Province: British Columbia
2. General
   1. Start Year: 2025
   2. Retirement Age 62
   3. Projection until Age 100
   4. Rates of return as 1%, 2%, 5%
3. Expenses
   1. Base Expenses of $100K
   2. Plus Additional Travel of $10,000 from 62 to 74
   3. Renovation of $200K 0% Indexing at age 63
4. Incomes
   1. $320K salary
5. Assets
   1. Savings $25K 100% Cash
   2. Investments $1.4MM (Cost of $1.1MM at 40% / 60%)
   3. TFSA $140K at 40% / 60%
   4. RRSP $900K at 40% / 60%
   5. TFSA Contribution room of $7,000
   6. RRSP Contribution room of $32,222.76
   7. Home worth $1.5MM with $700K cost
6. Debts
   1. Mortgage of $50K at 5% with $4,000 monthly
7. Gov’t Benefits
   1. We’ll change the CPP Start Age to 65 and set the Percent of Maximum to 85%.
   2. OAS we’ll leave as 65 and 100%.
8. Additional contributions
   1. Maxed out TFSA
   2. Maxed out RRSP
   3. $10K to Investments

Next Steps

Learn more about Corporate life insurance

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