Planning Process
What is the first thing you should do when grabbing an action from the queue?
What is the assumed age of retirement and death if not provided?
65 and 95
If someone checks the box for Holistiplan Tax report, what does that mean/what do you do?
Upload most recent tax return and print to pdf the tax report
62 and 70
70% of FRA benefit and 124% of FRA benefit
These are used as a way to hedge against downside risk on stocks (be specific)
Put options
Ideally, how many days should you allow for review of a plan?
2 days
What is the pre-65 Medical expenses and post-65 Medical expense amounts and inflation with it?
$12,500 pre
$7,500 post
5%
When going through projections, what should you do when updating information regardless if it is a new number, the same, or a deleted field?
Create a note of how you got the data, or why it was changed.
Medical expenses
State and local income tax
State and Local property tax
Mortgage interest
Charity
How long does an adult child who inherits an IRA post 2019 have to distribute the funds (most commonly)?
10 years
When updating a plan rather than creating a plan, what should you ask the advisor (and send them)?
Do you want assumptions updated and send the link to Mercer assumptions (a little bit more smoother when you know the advisor and are dedicated)
When does the max spending button in eMoney start it's calculation for the annual amount given?
The last retirement date.
When doing tax projections, what two locations can you find information on interest and dividends from managed accounts?
Orion reports and Custodian sites
On which tax schedules would you find the following: Interest and Dividends, Capital Gains, Rental income (Clue: 3 different schedules)
Schedule B: Interest and Dividends
Schedule D: Capital Gains
Schedule E: rental income
83 to 85, $100k per year.
If an action created doesn't have a due date, what should you do and what is the SLA for it to be due?
Check with the advisor to see if they have a due date for it, if not it is 2 weeks.
Name 5 common "what ifs" that should be included in Decision Center.
Pre- mature death
Disability
LTC
Longevity
Inflation increase
When looking at tax projections, what is the recommended safe harbor level to use and why?
100%/110% because it is already calculated and the safest way to meet the safe harbor and avoid penalty.
For SS spousal benefits, the benefit is based on the PIA of the higher benefit spouse. What is the common max spousal benefit % and how does the primary spouse claiming age and the spouse getting the spousal benefits claiming age impact it?
50% of PIA
Primary spouse must claim first but their claiming age has no impact
Spouse getting the benefit can get a max of 50% but will be reduced if they claim prior to their FRA.
What is the recommended amount of Umbrella insurance?
Make sure above and beyond current insurance to cover networth
Name 3 out of 5 of our core modules and what each entails (Bonus, name all 5)
Balance sheet - eMoney plan: Build out eMoney, add scenarios, eMoney report with plan summary, net worth, balance sheet, Base facts cash flow, and income tax
Investment Analysis: Ori Report for clients account or comparison
Retirement Analysis: Max Spending report in eMoneny/earliest retirement age
Spending Plan: FPG spending plan excel sheet
Tax Analysis: Holistiplan scenario analysis printout (integrate into eMoneY0
If someone is close to retirement, what should their Decision center analysis include?
Social security claiming ages (Earliest, FRA, Latest)
Current living expenses/Max living expenses (no more than 3 total expenses)
Potentially different retirement ages
Investment allocation changes if suitable
Bene and Estate planning changes
Tax planning such as Roth Conversions charitable giving
What are 2 inputs to have the advisor check on rather than simply inflating or guessing?
Schedule C income
Schedule E income
Medical Expenses
Charitable giving
What is the Premium tax credit based on (2 items) and when do you no longer qualify?
% of federal poverty level and number of people in household
400% of federal poverty level
What type of trust can be used to extend IRA distributions beyond the normal 10 year rule?
Testamentary CRUT