Planit:Your Working Documents

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PlanPlus Planit.jpg PlanPlus Planit User Guide Table of Contents

Modular Goal: "Planit Learning Circle" Session

In this session learn about each of these different approaches and how they differ for working clients vs. retired clients.

PlanitLearningCircl.jpg |Length: 38 Min 51 sec

To view more sessions like this one please click here.

Generating Documents

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The Your Working Documents link will take you to the screen where you’ll choose the document you wish to process for your client. You will have access to many documents, which are available in the system. Depending what data entry level you are set at will determine what documents you will see here. A document is generally opened with Microsoft Word however a few may open in Excel or in PDF format. You’ll note that the documents are broken down by category.

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To generate any one of the documents that is available to your deployment, you would click on the category of the document which will expand down showing you the available documents. You then would select the document by using the radio button beside the document you wish to run and then hit the “Generate Document” button.

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  • After you hit “Generate Document” button you will see a progress bar appear, with this progress bar you can see the status of the document you requested as it is being processed for you.
  • When your document is finished the screen will automatically refresh and show your document in the "Your Working Documents" window so you can download it.
  • You do not have to stay on this screen waiting for the document to be completed. You can go to another screen or even work on another client.
  • When you come back to this screen, it will display any documents that were previously processed and that are ready for download.
  • You’ll click on the document to be downloaded (if there are more than one) and then click on “Download”.
  • This will launch a download process and open the document using Microsoft Word on your own workstation.
  • Once you have downloaded the document, you may edit it as required and save the document on your own workstation’s local hard drive, on a network drive, or even up-load the edited document to the Safety Deposit Box of the PlanPlus Planit.
  • At any given time only one document of each type will be retained in the “Your Processed Documents” window.
  • If you have previously generated a Client Assessment and do another, the one that was previously generated will be deleted and replaced with the new document.
  • Should you wish to retain a previously generated document, you would either download it and save it to your local workstation, or alternatively you can save the previous document to the Safety Deposit Box.

TIP: Depending on the Client Data Entry Level will determine what documents will be in the list.


Select The Content you Want in your Document

Another powerful new feature is the ability to customize your document BEFORE you process it! When you request many of our larger documents, you will now be given the opportunity to pick and choose which pages will be included. Here’s an example of the options you are presented with when selecting an Investment Policy Statement. You’ll also notice a “Save” button is available. This allows you to select the pages you want and IF you want all future IPS documents to use this set of defaults, merely click on “Save” and that is what will be your personal default. You always have the option on any given client to change the selection to customize the document for each client.

This new feature is only available on the following documents, however more will be added in future releases:

Preparing Reports - Investment Management

  • Investment Policy Statement
  • Executive Summary Investment Policy Statement

Executive Summary Investment Policy Statement

  • Executive Summary

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Email Notification

This NEW feature allows advisors to notify others when a document has been generated and is ready for review by this party.

Within the “Your Working Documents” screen there is a button which to send an email notification to other parties when a document is ready for review. Your site administrator will need to have this set up for your regions or branch. The box will not appear when there are no email addresses set up for the region and branch of the logged in advisor.

Please note that you will only see these buttons if it is set up on your site.


Here’s an overview of the purpose for each category:


Qualifying and Engagement:

When you select “Qualifying and Engagement” you’ll have the option of producing either an Engagement Letter that incorporates client fees, or an Engagement Letter that is designed for use in no fee situations. Both of these engagement letters are created in your Word Processing software so that you may edit and customize them for each individual client as necessary.


Discovering:

One important aspect of the planning process is the collections of facts. The Discovering section is where you can find a Personal Questionnaire in either a detailed or summary data entry level for both the Investment Management and the Life Planning documents.

Preparing Reports – Investment Management:

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This is where any documents relating to investment management would be generated. This would include the Investment Policy Statement. A new report added is the Asset Allocation Comparison Report

Preparing Reports – Life Planning:

This is where you can find any planning documents that relate to financial planning or retirement planning. This would include the Client Assessment or the Personal Financial Strategy. This is also where you can find the new Integrated Planning Document Preparing Reports – Life Planning Audit Options The Life Planning Audit Options are a collection of long-term forecast calculations, which open up in an Excel spreadsheet. These provide you with details relative to all calculations used in the life goals scenarios that part of the various planning documents. A series of new reports called Life Goals Summary Reports have been added in the Life Planning Audit area. These Word documents provide a high level overview of the results from any life goals analysis from the Current Situation Analysis, Modeled Strategy, Needs on Death or Disability. These can allow you to look at the results of any analysis without having to generate a complete Personal Financial Strategy document.

Implementation:

The Implementation provides you with a series of client information pieces that are helpful in educating your clients on many financial planning subjects. These CIS are powerful tools in motivating your clients to take action on your recommendations. Here’s a list of the CIS that are currently available:

Financial Planning Investment Management Estate Planning Risk Management Administration
CIS - Strategic Financial Management CIS - Principles of Investment Management CIS - Principles of Estate Planning CIS - Types of Life Insurance Report Cover Letter
CIS - Strategic Decision Making CIS - The Power of Diversification CIS - Issues When Drafting a Will CIS - Types of Disability Insurance Invoice & Cover Letter
CIS - Principles of Cash Management CIS - Executor Duties CIS - Life Insurance FAQ's
CIS - Will Planner CIS - Principles of Risk Management


Building Loyalty & Referrals

The documents found under the Building Loyalty & Referrals are Quality Assurance questionnaires.


Using Sample Documents in your Practice

When you are transitioning your clients to financial planning services, one technique that can be very effective is to provide a sample of a financial plan done for a sample client so they can get a better understanding of exactly what it is you are planning on doing for them. It's strongly recommended that you prepare samples of the documents you'll use with clients that incorporates your corporate branding and have them on hand to show prospective new clients. If however you don't yet have your own sample documents, we have prepared generic samples of several of our key documents that you can download and print. Here's a list of what's available:


Investment Policy Statement (IPS)

Personal Financial Strategy (PFS)

Retirement Goal Needs Analysis (RGNA)

Education Goal Needs Analysis (EGNA)


While there are other documents available within Planit, these are the most commonly used ones that will allow you to demonstrate the service you are suggesting to the client. We hope these sample documents are helpful.


Document Components Explained

As explained above under "Select the Content You Want", you have the option to include or exclude various pages in the Investment Policy Statement or the Personal Financial Strategy. To help you choose the content that's appropriate for your client, what follows is a brief overview of the various elements of these two, most popular, documents.


Investment Policy Statement

Cover Page: The cover page identifies who the report was prepared for, when it was prepared and by whom. The branding on the cover page can be unique by site or by region.

Index: The Index provides a table of contents of the components you have included in your document. If you turned off a section when processing the document, the index will exclude that page from the table of contents. Note that if you manually remove pages from the document after it's processed and down loaded, then you must re-paginate the table of contents by clicking on it and hitting F9.

Purpose for an Investment Policy Statement: This page introduces the client to the concept of having a governing document that will be used for making investment decisions going forward.

Risk Tolerance: This page provides an overview of the results of the risk tolerance test that was done for the client. If a separate risk profile was done for the client and spouse, then both would be included in the document. This section of the document is sensitive to any custom risk tolerance questionnaire that might be used on a particular site.

Portfolio Objectives: This page identifies each of the portfolios that are included in the IPS. You may have one or multiple portfolios. The table in this section shows the name of the portfolio . . such as "Mary's Retirement Portfolio", how much capital is in that portfolio, the risk tolerance associated with that portfolio (based on who owns it), the time horizon and risk capacity identified for that portfolio and finally the recommended investment strategy for that portfolio.

Current Holdings: This page shows a breakdown of each portfolio and includes the names of each account included and all the holdings inside each account. This table also includes the owner of each account and the type of account it is (RRSP, Open etc.) This adds clarity to how the client's investment are being treated separately based on the portfolio they are a part of.

Net Worth Statement: A detailed list of assets and liabilities showing an overall net worth. This section also identifies the client's "Net Invested Assets" which are the funds that are available to fund goals.

Asset Allocation: This shows the current asset allocation of the client's existing assets and also shows the proposed or recommended asset allocation. There can be one or multiple pages for the Asset Allocation since there will be one for each individual portfolio you have created. Also, when there are multiple portfolios, there will be an "All Portfolio" page that shows the rolled up asset allocation of all portfolios combined.

Portfolio Risk Vs. Return: Shows how the current asset allocation compares with the recommended asset allocation in terms of risk and return.

Efficient Frontier: Illustrate where the current and the recommended asset allocation sit relative to risk and return. Also plots the various target portfolios used on the site to see the positioning of the current and recommended in comparison with the standard efficient portfolios.

Historical Annual Returns: Shows the actual historical returns for the past 25 years of the current and the recommended asset allocation. Designed to help clients understand that the "expected" return is not static but will fluctuate up and down from year to year.

Portfolio Risk vs. Time: Another way of explaining to the client how the "expected" return is not really expected every year, but is an overall long term estimate of what to expect. In reality returns will fluctuate from year to year and this graph shows the overall historical highest, historical lowest and historical average in comparison to the return we are projecting for the client overall. This graph also supports the concept of time mitigating risk since volatility is reduced with longer time periods as illustrated in the graph.

Assumptions: This page of the document provides details on the assumptions used in the report. This includes the inflation assumption, the benchmarks used for the various asset classes etc.

Portfolio Repositioning Recommendations: This page is designed to help clients and advisors understand the magnitude of change necessary to achieve the target asset allocation. It shows at a high level what asset classes need to be sold and bought to bring the portfolio into balance.

Tactical Implementation Strategy: This page, when included provides a detailed Buy/Sell/Hold list of the securities you are recommending. It shows the client, account by account what you are suggesting they sell, buy and hold. It basically identifies the detailed transactions required to implement you recommendations.

Investment Policy Statement Agreement: This is a written agreement that basically says that you, the advisor will manage the client's money based on the guidelines in the IPS and the client will also govern their behaviour by the IPS.

Action Plan: This is where some default action steps are identified relative to implementing the IPS . . .and also suggesting some additional planning steps that are being recommended. This is an editable action plan and is designed so the advisor can add in any additional action steps that they are recommending for the clients.


Personal Financial Strategy

Cover Page: The cover page identifies who the report was prepared for, when it was prepared and by whom. The branding on the cover page can be unique by site or by region.

Index: The Index provides a table of contents of the components you have included in your document. If you turned off a section when processing the document, the index will exclude that page from the table of contents. Note that if you manually remove pages from the document after it's processed and down loaded, then you must re-paginate the table of contents by clicking on it and hitting F9.

Purpose for a Personal Financial Strategy: This page introduces the client to the concept of having a roadmap to help them achieve all of their financial goals. Reviews are also encouraged in this introduction.

Your Goals and Objectives: This page identifies all of the general and specific goals the client has identified.

Net Worth Statement: A detailed list of assets and liabilities showing an overall net worth. This section also identifies the client's "Net Invested Assets" which are the funds that are available to fund goals.

Cash Flow Statement: This page shows the client's current year cash flow. It may be a summary version or a detailed version, depending on the level of cash flow information entered. A pie graph illustrates how cash flow is broken up amounts taxes, savings and living expenses.

Asset Allocation: This shows the current asset allocation of the client's existing assets and also shows the proposed or recommended asset allocation. When there are multiple portfolios, it will be the "All Portfolio" page that shows the rolled up asset allocation of all portfolios combined that is presented in the Personal Financial Strategy.

Life Goals Analysis - What is it?: This page helps the client understand the nature of a life goals analysis. It explains how shortfalls can be eliminated by saving more, spending less, reducing taxes, changing your goals etc. It's designed to set the stage for the analysis which follows.

Life Goals Retirement Analysis - Current Situation: This page identifies the client's results if they do nothing different from what they are doing now. They keep saving what they are currently saving, try to achieve the goals they have identified, and leave their investments as they currently are. No changes at all. This provides a benchmark against which to measure the impact of your recommended changes. A second page shows the detailed Inflows and Outflows that result in the surplus or shortfall identified.

Life Goals Retirement Strategy: This page identifies the changes needed to eliminate any shortfalls. Your Recommendations that have been created based on the parameters you identify. These should be based on a conversation you have with the client relative to the priority ranking of their goals and any other changes they would be willing to make to result in an achievable strategy.

Before and After - A Comparison of Results: Allows you to present their situation before your recommended changes and their situation after your recommended changes. The "Value of your Advice" is seen in this comparison.

Need on Death and Need on Disability: Identifies shortfalls in the event of either spouse's death or disability.

Planning Assumptions: This page of the document provides details on the assumptions used in the report. This includes the inflation assumption, the benchmarks used for the various asset classes etc.

Action Plan Checklist: This is where some default action steps are identified relative to implementing the Personal Financial Strategy . . . and also suggesting some additional planning steps that are being recommended. This is an editable action plan and is designed so the advisor can add in any additional action steps that they are recommending for the clients.