General Assumptions

This page covers the following location(s) in NaviPlan:

Plan Management – Assumptions – General

Planning Objectives :: Procedures :: Related Information

Planning Objectives

ClosedWhat do these assumptions affect?
  • NaviPlan bases its calculations on certain assumptions, which can be changed. You can specify which inflation and tax rates, as well as tax options, NaviPlan should use. Since NaviPlan allows the clients to retire at a specific date during the year, and retirement begins on the first day of the month that the clients retire, the tax rates for the year of retirement are prorated based on the retirement month.
    • Note: If you selected Client(s) are already retired during plan creation, some of the details listed below may not appear or apply.

Procedures

ClosedHow do I change economic factors (such as inflation rate, return rate, and cash surpluses)?
  1. Enter a Base Inflation Ratepercentage. To view the historical inflation rates, click Inflation Rate Graph.
  2. In the Return Rate for Cash Surpluses field, enter a percentage
    Note: The Return Rate for Cash Surpluses field only appears if you are using the Detailed Tax method.
ClosedHow do I set default annual account fees?
  1. Enter the Annual Account Fee, specified as a percentage of the account’s market value.
  2. From the Frequency list, select how often the account fee will be calculated.
  3. To claim annual account fees as a tax-deductible expense, select Tax Deductible.
    Note: The Tax Deductible option only appears if you are using the Detailed Tax method.
ClosedHow do I set the deferred growth rate for assets in the plan?

Lifestyle Assets

  1. From the Lifestyle Assets section, review the data for each Asset Type in the list. Use the Pre-Retirement and Retirement fields to enter your own custom deferred growth rate assumptions.
  2. Use Reset to Defaults at any time to remove any custom data you have entered and reset data for each asset type back to NaviPlan's default.

Real Estate Assets

  1. From the Real Estate Assets section, enter your custom value for Deferred Growth Rate.
  2. Use Reset to Defaults at any time to remove any custom data you have entered and reset data back to NaviPlan's default.
ClosedHow do I set account reinvestment strategies for the plan?
  1. From the General section, scroll to Account Reinvestment Strategy.
  2. Select your desired option for reinvestment strategy:
    • Reinvest After-Tax: Taxes are paid on investment growth, the remainder are then placed back into their corresponding accounts.
    • Reinvest All: Reinvests all investment proceeds into their corresponding accounts, taxes will be paid by cash flow.
    • Reinvest None: Reinvests no investment proceeds back into their corresponding accounts, goes directly into cash flow.

Note: You can enter different strategies for the Pre-Retirement and Retirement periods.

Related Information




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