Training Booklet...client’s social security start date. Please note: Your client will receive a social security statement once every 5 years from age 25 to 60 then annually until

Training Booklet

© 2020 Advisor Controls 1

Household


RPS was built to make data entry easier and faster. Simply collect the client’s basic information, salary and social security information to begin your case.

Basic Information, Salary, Social Security


When entering social security, you can run a rough estimate of social security benefits based on salary information or for a more accurate estimate of benefit values the client will need to provide their social security benefit based on full retirement age determined by their date of birth and the age at which they want to start receiving social security.

RPS will then estimate the client’s monthly benefit values if social security is taken prior to the client’s full retirement age. The FRA (full retirement age) amount will grow by the cost of living rate from now until the client’s social security start date.

Please note: Your client will receive a social security statement once every 5 years from age 25 to 60 then annually until they start receiving benefits. The statements are mailed 3 months prior to the client’s birthday however your client can get their benefit statement anytime at www.ssa.gov/myaccount.

Estimate Social Security


http://www.ssa.gov/myaccount

Incomes, Expenses, Assets


When adding to the incomes, expenses and asset section this can be done two ways either SIMPLE or DETAILED.

Choose from a broad range of asset types and attached a Morningstar category to allocate to applicable buckets and accomplish Monte Carlo simulations.

Simple data entry: When using the simple approach, you can aggregate and lump together certain entries under income, expense or assets. For example, rather than breaking down each individual expense you could enter the description of Household Expenses with a total monthly amount.

Detailed data entry: When using the detailed approach, you will enter each individual income, expense or asset and complete the missing fields accordingly.

Incomes, Expenses, Assets


Income can be added under 3 categories: post retirement salary, pension and other. Examples of other income sources are property rentals and capital gains. Depending on the income type chosen you will be prompted with the appropriate missing fields.

Add an Income


When entering an expense, you will want to choose whether it is discretionary or essential, the amount, the frequency, whether it’s likely to increase, what age it starts and what age it ends.

The aggregated expense information represents the income your client needs to stay retired and will show up as a reminder on the Retirement Goals page under the income goal question.

Discretionary: A cost that is not essential for the operation of a home or a business.

Essential: Expenses that are essential to meet our needs (ex. Food, shelter).

Add an Expense


When adding an asset or group of assets from a client statement it can be done two ways SIMPLE or DETAILED.

Simple data entry: When using the simple approach, you can pull asset type information from subtotals under various sections of an investment company statement. Most investment companies like Fidelity or Vanguard break down statement totals by equity, fixed income, mutual funds, annuities and other alternative products.

Detailed data entry: When using the detailed approach, you will enter each individual asset and complete the missing fields accordingly.

Once you enter the asset type you will need to provide a customized asset description, for example, John’s Fidelity IRA. Once you have chosen the asset type and the asset description you will need to select an appropriate investment category based on the weighting of equity to fixed income. This will apply the applicable variability to the estimated growth rate you provide which is important for Monte Carlo simulations. The investment category you select will also appropriately place liquid assets invested in cash or bonds in the bottom of the risk pyramid under short term/low risk. Equities, variable and indexed annuities without income riders along with alternative investments will be placed at the top of the risk pyramid under long term/high risk.

Add an Asset


Add an Asset – Asset Types

RPS has numerous asset types to chose from when entering data.

When adding an asset or group of assets from a client statement it can be done two ways SIMPLE or DETAILED.

Simple data entry: When using the simple approach, you can pull asset type information from subtotals under various sections of an investment company statement. Most investment companies like Fidelity or Vanguard break down statement totals by equity, fixed income, mutual funds, annuities and other alternative products.

Detailed data entry: When using the detailed approach, you will enter each individual asset and complete the missing fields accordingly.

Once you enter the asset type you will need to provide a customized asset description, for example, John’s Fidelity IRA. Once you have chosen the asset type and the asset description you will need to select an appropriate investment category based on the weighting of equity to fixed income. This will apply the applicable variability to the estimated growth rate you provide which is important for Monte Carlo simulations. The investment category you select will also appropriately place liquid assets invested in cash or bonds in the bottom of the risk pyramid under short term/low risk. Equities, variable and indexed annuities without income riders along with alternative investments will be placed at the top of the risk pyramid under long term/high risk.


Add an Asset – Investment Category

The investment category is what drives Monte Carlo simulation in RPS.

While there are various investment category options the most common investment categories used are:

• Allocation: 85% Plus Equity • Taxable Bond: Multisector Bond


Add an Asset – Cash Example

When entering cash as an asset you will want to provide the following details:

• Select cash as the asset type • Provide a detailed asset description • Check is the asset is qualified or non-qualified • Choose the owner • Provide a symbol if applicable • Enter the current value and growth rate • Enter the amount of contributions being made and the frequency of the contributions if

applicable • Enter the monthly income withdrawal amount and whether it is entered as an amount or

percentage along with the start and end age if applicable


Add an Asset – Employer Plan Example

When entering an employer plan as an asset you will want to provide the following details:

• Select employer plan as the asset type • Provide a detailed asset description • Check is the asset is traditional or a Roth • Choose the owner • Pick the investment category • Provide a symbol if applicable • Enter the basis or current value and growth rate • Enter the amount of contributions being made and the frequency of the contributions if

applicable along with employer contributions • Enter the monthly income withdrawal amount and whether it is entered as an amount or

percentage along with the start and end age if applicable

NOTE: The investment category is what drives Monte Carlo simulation and the flow of assets into the correct buckets. It is important to separate stocks from bonds if/when possible.


Add an Asset – Real Property Example

When entering a real property as an asset you will want to provide the following details:

• Select real property as the asset type • Provide a detailed asset description • Check is the asset is qualified or non-qualified • Choose the owner • Pick the investment category • Provide a symbol if applicable • Enter the basis or current value and growth rate • Enter income whether it is guaranteed or non-guaranteed when the amount is along with the

start and end age

NOTE: The investment category is what drives Monte Carlo simulation and the flow of assets into the correct buckets.


Add an Asset – Variable Annuity Example



Add an Asset – Traditional IRA Example



Add an Asset – Indexed Annuity Example



Add an Asset – Bond Example



Add an Asset – Mutual Fund Example



Add an Asset – Roth IRA Example



Add an Asset – Equity Example



Add an Asset – Third Party Management Example



Add an Asset – Fixed Annuity Example



Add an Asset – Savings Example



Add an Asset – Index Linked Annuity Example



Add an Asset – Money Market Example



Retirement income: is the amount of stated expenses determined under the Incomes, Expenses and Assets section with the addition of what your client ideally wants in total income to go beyond just paying the bills. This number is the total after tax income desired.

Percent of income needed after first death: this refers to the percentage of income desired after the death of a spouse.

Income tax rate: this refers to the tax rate stated by the client. Advise clients to consult their tax advisor prior to choosing a rate.

Protected income: this section will establish the client’s goal for desired Protected/Guaranteed Income. The stated percentage will set a guaranteed income target (see the yellow line in cash flow) that can be used as a guideline for determining guaranteed income product solutions. The remaining income need will be met using Probable Income (liquid assets). This includes pensions, social security and guaranteed income.

Probable income: this section allows you to solve for additional income from liquid assets necessary to meet the remaining total income target, above protected baseline income sources. You can choose the number of years you want the system to reserve cash and/or fixed income for meeting the remaining income need. Tax and inflation adjusted bucket values will indicate when cash and fixed income needs to be replenished.

If allocation years are specified, all remaining investments after reserving funds will be kept as equities.

Short-term assets: this section allows you set aside fund for emergencies or various goals, such as: a new home, vacation, college or nursing home expense. These assets will be removed from cash flow.

These funds will be set aside and not used or reflected in the cash flow calculations.

Retirement Goals


Retirement Goals – Retirement Income

Retirement income is the amount of stated expenses determined in the incomes, expenses and assets section with the addition of what the client ideally wants in total income to go beyond just paying the bills. This number is the total after tax income desired.

The graph on page two of the client’s current plan will then project the desired income through to the client’s target retirement date adjusting for inflation and taxation.

With RPS you can modify the target income for spousal needs, clicking the graph or ledger on page two of the client’s current plan it will illustrate the income need in any year.

Retirement Income = Protected Income Sources + Probable Income Sources


Retirement Goals – Protected Income

The protected income question sets the stage for determining how much of your client’s total income will be derived from guaranteed sources including: social security, pensions, rental property, sale of a business and income annuities. The percent entered here is carried throughout your client’s retirement story as a target chosen by your client. You are in affect putting your client in a position to tell you their comfort level for guaranteed or protected income.

Your clients desired target income is displayed on every page of the current plan, the proposed plan and the summary comparison; it will be your job to determine the types of products to use for hitting your client’s guaranteed income level.

.Set guaranteed and liquid asset income targets to holistically meet desired income need.


Retirement Goals – Probable Income

The probable income section is EXTREMELY important for the advisor who wants to create an income solution without using an income annuity.

Please Note: It is common for a client to only want a small percentage of their income need covered by guaranteed income products.

RPS will provide the advisor with the flexibility of designing a solution using low risk liquid assets like cash equivalents and fixed income. You can choose the number of years the client wants to pay bills with cash equivalents versus the number of years the client wants to pay bills using fixed income. The system will automatically calculate and track the values to keep the advisor on track during the planning stage as well as during annual reviews.

Please Note: Advisors should use their own planning style to determine the number of years to pay bills with cash versus fixed income or leverage the style of a third-party manager.


Retirement Goals – Short-Term Assets

The short-term asset question is important for identifying your client’s expectations for emergency funds or a specific goal (i.e., buying a second home or new car). You as the advisor are able to get the client excited about retirement by helping them realize a dream.

This value is removed from cash flow as it is assumed that it is spent within the first few years of retirement.

Please note: Don’t forget to take a detailed note outlining the client’s goals and retirement objectives.


This section represents three risk scoring methods based on independent sources determined using the appropriate risk tolerance questionnaire. Each method has been aligned based on the definition and interpretation of risk tolerance. See your broker dealer and/or each firms’ written methodology prior to use.

Please note: RPS does not have an integration with any of the mentioned risk profile companies. RPS has simply aligned risk scoring methods in an effort to provide each advisor control over what they feel best meets their client’s needs.

Retirement Goals – Risk Profile


Current Plan


The current plan displays the pyramid of risk and corresponding buckets to illustrate the roll each investment plays in an income plan. The three sections include low risk/short term assets, baseline income and high risk/long term assets. Your client’s retirement goal is summarized at the bottom of each section and current assets contributing to the target are at the top. Buckets illustrate whether values or over weighted, under weighted or right on track with target amounts.

Example: an under weighted bucket in the baseline income section represents the need to increase the allocation to products producing guaranteed income that will accomplish hitting your client’s stated target.

Short-Term/Lower Risk: this section refers to assets (i.e. bonds or cash) that have low to no risk; thus, they are more dependable for use in situations where you need a bridge (i.e. to Social Security), short-term goal or emergencies.

Baseline Income: this section refers to assets that provide guaranteed (predictable) sources of baseline income over a client’s lifetime (i.e. annuity income riders or GWB), or for a specified period of time (i.e. annuity spenddown or period certain).

Long-Term/Higher Risk: this section refers to assets that have higher risk (i.e. equities, alternative investments, variable and index annuities without riders) and provide a long-term inflation hedge. They can be used for future income or as legacy value.

Annual Protected Income: reflects the total of all guaranteed PRE-TAX income sources taken from the highest point at which income begins. Short-term/Low Risk assets support income needs when a guaranteed income shortfall exists, or taxes need to be paid. NOTE: only annuity products that provide guaranteed income for life (to age 100) are included for Baseline/Protected income calculations.

From the current plan page, you can add, edit and delete assets without leaving the page. To add an asset on the current plan page simply click the + symbol.

Current Plan – Add an Asset


From the current plan page, you can add, edit and delete assets without leaving the page. To edit or delete an asset on the current plan page simply click pencil symbol.

Current Plan – Add, Edit or Delete an Asset


The current plan includes your client’s Short-Term/Lower Risk assets, their Baseline Income assets and their Long-Term/Higher Risk assets all of which have a scrollable feature to allow for detailed asset entry to display an undefined number of assets.

Current Plan - Scrollable


Current Cash Flow

This section illustrates both Protected and Probable income sources in the current plan used to meet the total annual income need. Dials are used to simulate retirement risks and solutions to income shortfalls. Solid lines over the graph illustrate available protected income relative to desired protected income. The gap between each solid line measures the need for guaranteed products. The addition of Baseline/Guaranteed income products in the Proposed Plan closes the gap between the two lines.

Note: Clicking on the graph or the ledger will display inflation and tax adjusted income sources.

Retirement Need: This graph illustrates how available income and cash sources were used to meet the retirement income need each year. The gap illustrates how much protected income is needed based on the percentage specified on the retirement goals page. This graph measures the retirement income need including taxes incurred for each year. This graph will not reflect funds needed for short term goals, allocation of assets, or money transferred to new proposed assets.


Current Cash Flow – Cash Sources

Clicking on the graph or the ledger will display inflation and tax adjusted income sources.

If more detail is needed you can find the color-coded ledger which provides detailed monthly values forecasting through age 100.

At Risk Income: Available income and withdrawals from assets that are considered to be at risk. The Salary & Other Income column shows all available non-guaranteed income. The Low Risk Assets and High-Risk Assets columns will show income withdrawals from non-guaranteed annuities as well as any asset withdrawals needed to fulfill the retirement income plus taxes incurred each year.


Current Cash Flow - Dials

Within RPS dials are used to simulate retirement risks and solutions to income shortfalls and allow you to quickly illustrate the effect retirement risks have on cash flow or portfolio assets.

Simulation dials can be found under objectives, inflation, longevity and transactions on the left-hand side of the current cash flow page.


Current Cash Flow – Current Liquid Asset Drawdown

This section illustrates the effect withdrawals, contributions and growth rate assumptions, have on each asset class and total net worth within the Current Plan.



Current Cash Flow – Current Allocation

This section illustrates cash, fixed income and equity buckets used to meet the income need in the Current Plan. The assumed annual growth rate on cash is 1% and fixed income is 2%.

Note: clicking the arrows will simulate hypothetical bucket values.


Current Cash Flow – Current Allocation

If you click the view transactions button you will be able to view the cash flow transactions for the current allocation year.


Proposed Plan


When building a proposed plan RPS extends same page control so you never have to leave the page when making recommendation.

Much like the current plan the proposed plan has three sections that include: low risk/short-term assets, baseline income and high risk/long-term assets. Question boxes can be found that define each section and the types of investments to consider for that section.

Your client’s retirement goals are summarized at the bottom of each section and current assets contributing to the target are at the top.

Buckets illustrate whether values are over-weighted, under-weighted or right on track with target amounts.

EXAMPLE: An under-weighted bucket in the baseline income section represents the need to increase the probable income to products producing guaranteed income that will accomplish hitting the client’s stated target.

Annual Protected Income: The annual protected income value reflects the total of all guaranteed Pre-Tax income sources taken from the highest point at which income begins. Short-term/Low Risk assets support income needs when a guaranteed income shortfall exists, or taxes need to be paid. Note: only annuity products that provide guaranteed income for life (to age 100) are included for baseline/protected income calculations.

Proposed Plan


When you click on the transfer button you will be able to create a full or partial transfer of an asset to a new or existing position. This allows a seamless move from assets to recommendations, thus filling the Protected (middle/blue) & Probable (bottom/green) income buckets to desired levels.

You are also able to hover over each coded recommendation to see more detail on the transaction such as where the money moved from, where it is going, corresponding notes and what number recommendation it was.

Proposed Plan


Proposed Plan

When you click on the transfer button you will be able to create a full or partial transfer of an asset to a new or existing position. You can choose from a broad selection of investment options, apply your own title, for one or more assets and provide the appropriate investment category which will assign variability to the estimated growth rate entered.

Note: RICH Technology™ will recognize limitations on the variable growth rate associated with guaranteed products so as to enhance accuracy under Monte Carlo simulations.

Once you have entered product details you will then be able to take notes to communicate important information regarding the recommendation.

Tip for Entering Assets: To properly allocate assets to their appropriate Bucket Strategy, separate asset types (Equity, Bonds, Cash, Annuities with Income Riders, Annuities without Income Riders) found on each statement. Buckets define the role each asset plays in a retirement plan. Individual entries will be made for each asset type as follows:

Sample Asset Description:

Fidelity IRA (Cash) This will drop into the bottom bucket (short-term/low risk).

Fidelity IRA (Bond) This will drop into the bottom bucket (short-term/low risk)

Fidelity IRA (Equity) This will drop into the top bucket (long-term/high risk).

AXA (Annuity with Income Rider) This will drop into the middle bucket (baseline guaranteed income)


Proposed Plan

Click to use the annuity tool to calculate the annuity premium needed to meet your remaining baseline income need.


Proposed Cash Flow

This section illustrates both Protected and Probable income sources in the Proposed Plan used to meet the total annual income need. Dials are used to simulate retirement risks and solutions to income shortfalls. Solid lines over the graph illustrate available protected income relative to desired protected income. The addition of baseline guaranteed income products closes the gap between the two lines.


Recommended allocations to income annuities (light blue) lift the guaranteed income line (black line) over the guaranteed income target (yellow line) to close the security gap.

Retirement Need: This graph illustrates how available income and cash sources were used to meet the retirement income need each year. The gap illustrates how much protected income is needed based on the percentage specified on the retirement goals page. This graph measures the retirement income need including taxes incurred for each year. This graph will not reflect funds needed for short term goals, allocation of assets, or money transferred to new proposed assets.


Proposed Cash Flow – Proposed Liquid Asset Drawdown

This section illustrates the effect withdrawals, contributions and growth rate assumptions, have on each asset class and total net worth within the Proposed Plan.


Allocations to various buckets alter asset values and Monte Carlo simulations statistically supporting Reg BI requirements.


Proposed Cash Flow – Proposed Allocation

This section illustrates cash, fixed income and equity buckets used to meet the income need in the proposed plan. This can be useful for understanding how low risk liquid assets help to meet the income target, above what protected income sources are providing, as well as providing a gauge for replenishing values in a client review. The assumed annual growth rate on cash is 1% and fixed income is 2%.

Note: clicking the arrows will simulate hypothetical bucket values.


Proposed Cash Flow – Monte Carlo Forecast

Monte Carlo simulations statistically support improved portfolio value.

Trials: a trial is one simulation of results, based on how much you save for retirement, how long you save, and the rate of return associated with your risk tolerance level.

Relative Error: relative error is expressed as a percent and is useful to determine how close an approximation is to the true quantity being measured. The smaller the relative error, the closer to the true value.

Standard Deviation: standard deviation is a statistic that tells you how tightly all the various trials are clustered around the average in a set of data.


Summary Comparison


Summary Comparison

Compare the proposed plan versus the current plan while displaying rationale of each investment recommendation with summary notes.

Animated buckets measure allocations to low risk, guaranteed and high-risk income sources. Dials indicate product weighting, asset class allocation and guaranteed income target.


Summary Comparison - Dials

This measures product weighting so as to provide a guideline for identifying concentration information that may be useful for advisors and supervising firms.

Note: product concentration limits may vary. See your supervising firm’s rules for details.

This measures liquid asset weighting which is defined by asset classes NOT allocated to annuities with lifetime guarantee income benefits (GWB). It Is assumed that an income annuity’s accumulation value may fall to zero, though the income benefits will continue based on contractual guarantees.

This represents a static model determined by administering a risk tolerance questionnaire. (See Retirement Goals)

It can be referenced when allocating liquid assets.

This measures the percentage of Guaranteed Income that you desire to target, relative to the total income need. Adding products with guaranteed income benefits (GWB) will increase the percentage of Baseline/Guaranteed income. Protected income sources include: Pensions, Social Security and Annuities that provide guaranteed income for life (through age 100).


Notes


All notes taken within RPS can be found on the Notes page and are coded by entry, if edits need to be made you can quickly and easily modify key points without leaving the page by clicking the pencil icon.

Modifiable notes will create back office efficiency and improve compliance files.

You can choose to copy your notes to clipboard or push your notes to your Redtail CRM.


Redtail Integration Instructions


Redtail CRM users may create Advisor Controls RPS cases directly from Redtail. Follow the directions to setup your integration between Redtail CRM and RPS.

Step 1: while on the Advisor Controls dashboard, click on “My Profile” in the top left corner, then click the Integrations tab.

Step 2: from your integrations page, look for your Redtail integration key. Select the text (a combination of numbers and letters), and copy (control-c on windows, cmd-c on Mac). If you want to import account values (assets, etc.) from Redtail to Advisor Controls, be sure the Import Holdings checkbox is checked.

Step 3: Open Redtail and click your name in the upper right. From the dropdown that appears, select Manage Your Integrations


Step 4: in the list of available integrations, find the Advisor Controls integration (you might have to click the Disabled tab to see it). Be sure the toggle switch is set to ON.

Step 5: click the gear symbol to open the dropdown, then select Settings.

Step 6: paste the integration key you obtained from your Advisor Controls “My Profile” page. Once you’ve pasted your integration key in the input field, click Save. Now you’re ready to send data form Redtail to Advisor Controls!


Step 7: when you have a contact open in Redtail, click the Integrations symbol on the top of the screen to send data to new Advisor Controls RPS case.

Step 8: when you click the Integrations symbol in Redtail, you’ll get a popup that displays the active integrations you have in Redtail. Select Advisor Controls.

Step 9: click Send to Advisor Controls

Step 10: Redtail then signs you in to Advisor Controls and creates a new case for you with the client information from Redtail, where you can start using RPS with your new case.


Leads


Lead generating tools can be purchased as a product add-on allowing for a unique business in a box software.

Currently we offer lead gens through the subscription of Disability Insurance, Life Goals and Social Security.

Once you have subscribed to one or all of the following product add-ons a unique URL generated to catch the leads.

Many prospects for Social Security for example first start researching online – with SSGen you can direct interested prospects to your personalized Social Security site.

Step 1: Post your unique URL to your personal website, email footer or social media accounts. You can also print your URL or unique QR code on marketing material.

Step 2: Prospects will self-qualify by playing with their benefit projections and seeing how their choices compare with optimal Social Security planning. Prospects see their real numbers, not hypothetical case studies.

yournamehere yournamehere

yournamehere

yournamehere


Step 3: When a prospect walks through the tool, you will immediately receive an e-mail notification, and the lead will appear in your lead’s dashboard.

Step 4: From your leads dashboard you can follow up a lead, review data submitted, and create new cases directly from the lead- data is automatically shared with SSPro.


PlanFacts Add-Ons


To access our PlanFacts add-ons you will find them the following ways:

Option #1: Click on My Account - PlanFacts Tools

Option #2: Click on My Account – Manage Subscriptions – Shop Product Add-Ons


Training Booklet...client’s social security start date. Please note: Your client will receive a social security statement once every 5 years from age 25 to 60 then annually until

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