FNA (Financial Needs Analysis) Retirement Funds

• Below a typical process to capture a Retirement Funds on the FNA where 1/3 is reinvested on retirement.

Setup the Needs Analysis Group

• • Navigate to: System -> Needs Analysis Group -> Retirement Funds
  • The following 3 components will be required:
    • Net asset value [Asset] -> Current value of the fund eg. 600,000.00 {Compulsory}
    • Once off Withdrawal [Liability] -> eg. 1/3 to be removed from the Net asset value of the fund eg. 200,000.00 {Compulsory}
    • Once off Investment [Asset] -> the 1/3 that can be reinvested eg. 200,000.00 {Voluntary}

Capture the Financial analysis items

• • Navigate to the Financial analysis, for details refer to Needs Analysis Financial Analysis.
  • Select the option: Show items by group

• • Navigate to the Retirement Funds section and Select the Add button

• • Capture and save the 1st parameter: Net asset value [Asset] -> Current value of the fund eg. 600,000.00 {Compulsory}

• • Scroll down again to the Retirement Funds section

• • Capture and save the 2nd parameter: Once off Withdrawal [Liability] -> 1/3 to be removed from the fund eg. 200,000.00 {Compulsory}
  • NOTE: The From date should be one month after retirement from the Date of birth (eg. for Date of birth 1990/01/01 set the from date to 2055/02/01)

• • Capture and save the 3rd parameter: Once off Investment [Asset] -> 1/3 that can be reinvested eg. 200,000.00 {Voluntary}
  • NOTE: The From date should be one month after retirement from the Date of birth (eg. for Date of birth 1990/01/01 set the from date to 2055/02/01)

Expected Results

• • For illustrative purposes the CPI assumption, Nominal portfolio growth and Total required monthly income was set to zero
  • Pre Retirement Cash Flows
    • Below showing the Total Pre Retirement Cash Flows (Combined Compulsory and Voluntary portions = 600,000.00)

• • • Below showing the Compulsory Pre Retirement Cash Flows portion (100% = Total = 600,000.00)

• • • Below showing the Voluntary Pre Retirement Cash Flows portion

• • Post Retirement Cash Flows
    • Below showing the Total Post Retirement Cash Flows (Combined Compulsory and Voluntary portions = 600,000.00)

• • • Below showing the Compulsory Post Retirement Cash Flows portion (2/3 = 400,000.00)

• • • Below showing the Voluntary Post Retirement Cash Flows portion (1/3 = 200,000.00)

Last Updated on 1 year ago by Debra Hart