Total Planning Suite User Guide - Moneytree

Total Planning Suite

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User Guide

Quick Start Guide

The Basics

• This guide will go through entering a new client with TOTAL Planning Suite.

• Will cover the essential information needed for a basic plan.

• To get more information, use the [F1] key or select the icon located at the top right of the window for context-sensitive help.

• For more complex plans, see the General User Guide on our website: www.moneytree.com

Money Tree Software moneytree.com Toll free 1.877.421.9815

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Starting a new client

Select New Client, and then select “Create an empty client” on the next window.

Note: The Quick Entry Wizard is used to fill in the basic data entry fields using the wizard

format. You may still need to walk through the plan and enter more specific data and

Future Changes if needed.


Client Information

Necessary information includes first and last names, birthdates, and if the clients are

married (used for survivorship, taxes and Social Security calculations).

Gender, address, phone number and account type can be filled out but are not required.

When finished entering the clients’ information, select “New Scenario” on the left panel.


Assumptions: Scenario Information

To use a date other than today’s date on the cover page, use the “Cover Page Date” box. Example: You are meeting with the client on February 2nd , 2017 instead of the date you created the plan.

Enter the Scenario name (to replace “New Scenario”), enter the client’s names to be used on

the cover page, and enter Header text to appear at the top of each page in the report page.


Assumptions: Scenario Information

Set the clients’ retirement ages in the “Retire Age” box.

To use a life expectancy different than the calculated

one, enter the override age in the “Alt Life Exp” box.


Assumptions: Retirement Assumptions

You can defer the RMD start

age here.

Pre-Retirement Rates: The default rates of return for each type of asset. These rates apply

only if rates have not been entered in the Asset Details input fields.

Use This Rate After Retirement: If checked, the Post-Retirement Rates will be used starting at retirement and will overwrite any rates entered in Asset Details.

Use check boxes to choose to

“Calculate Penalty Taxes on Pre

59.5 plan distributions”, or

“Include Retirement Plans Asset

Allocation Mix, Asset Pyramid,

and Liquidity Reports”.


Assumptions: Surplus Allocation

Surplus allocation applies to Golden years reports throughout the plan and Easy Money reports after retirement. To change the percentage reinvested into each account type, select the “Edit Allocation” button.

In Easy Money, the pre-retirement reinvestment percentages will only apply to surplus created by Other Income items, unless there is a shortage created by other expense items. Easy Money will not reinvest cash flow surpluses generated by ordinary income and expenses until after retirement age.

Ignore Pre-retirement Cash Flow Surplus or Shortage: Makes the Golden Years report work more like Easy Money.


Assumptions: Other Assumptions

Monthly Accumulation Rates (Easy Money Only): Used for Retirement

Needs Analysis. These rates of return are used to demonstrate

additional funds that the client may need to invest pre-retirement in

order to cover their retirement spending needs.


Assumptions: Report Options

Personalize font and heading color for reports.

Report Cover Page Lines: enter advisor information.

Include Audit Trail notes on reports: This option adds an audit trail note (number/letter combination) refers to the page in the report on which the detail for the amount being shown on the viewed report page is located. This makes it easy to trace back numbers used in calculations by referencing the audit trail in the same column as the number in question.


Asset Details / Asset Details Tab

Select the “Add Asset” button to enable the asset detail entries.

For single-unit assets (such as a house, personal property, Etc.) enter 1 share or unit and use the total value of the property in the $ Price Share / Unit field.

Each asset MUST have a Group and Type selected to be included in the reports.


Asset Details: Asset Details Tab

If the default rates entered in Assumptions are accurate for the assets in this scenario,

leave rates entered in Asset Details at 0%. The default rates entered in Assumptions will be

used ONLY if no assets of a type have a rate of return in Asset Details.

To enter specific rates for each asset, use the rate boxes here in the Asset Details tab. If a

rate of return for one asset of a type (Taxable, Equity/Other, etc.) is entered, enter a rate for

each of the assets of that type.

Check if Used for Retirement: Deselect if the asset will appear only in the Current Net

Worth report and will not be available for cash flow needs.


Asset Details: Monthly Additions/Withdrawals

Use the Monthly Additions / Withdrawals tab to add or withdraw value from an asset. Enter

additions as a positive number and withdrawals as a negative. Entries in the "Current" and

"Retirement" boxes are for additions only, any "Current" additions will continue up until

retirement and will not continue unless also entered in the "Retirement" fields.


Asset Details: Future Change Table


To stop additions or withdrawals entered in the future change table, enter a stop age in

the bottom box with a $0 amount. A stop age is only needed if the future change table is

used to enter a start amount, no stop age is required when using the "Current" fields.

Asset Details: Residence Tab

The Residence tab can be used to sell a

residence asset at a future date and to purchase

a new residence. Entries for a new mortgage %,

interest rate and number of years will be used to

create a new mortgage liability and down

payment to purchase the new residence.

To view the Residence Tab, you must first select ‘Residence’ as the group


Asset Summary: Qualified Plan Additions

To maximize contributions to a type of qualified plan each year, the program will calculate an amount based on the clients’ income and contribute it automatically.

Choose the type of plan to maximize contributions to from the drop-down.

Note: If you maximize contributions in this tab, any additions you make in the

Asset Details tab will be added on top of your maximum allowable contribution.


Dependents: All Dependents Tab

To calculate college expenses,

enter current college savings, and

enter monthly deposits, go to each

of the dependent’s tabs and enter

cost per year and number of years

for college.

Dependents entered are picked up

as dependents for tax calculations.

Deduct education expenses from

savings/investment assets: Determines if

college costs are deducted from the parents’

assets once education funds are depleted.


Dependents: College Cost Estimator

The “College Cost Estimator” is a

great tool for computing education

costs. Money Tree updates the

tuition for each school annually.

Select the state, school, add in

housing costs, and build in either

a percent of tuition for other

expenses, or enter a specific

amount of other expenses.


Income: Earned Income

Earned Income: Show salary and wages for each individual. Self Employment wages

entered will have FICA calculated at the self-employed rate.

Tax $ column: Reduced for HSA accounts or other pre-tax deductions not already taken

into account by the program. Retirement account additions will be calculated before taxes.


Income: Earned Income

Tax $ column: Determines what portion of wages are used for tax calculations.

Cash Flow $ column: The amount that will be available cash flow for spending purposes.

Disability $ column: The amount this individual would continue to earn if their spouse

becomes disabled. (This shows up only on the Disability reports in Easy Money.)

Survivor $ column: The amount this individual would continue to earn if their spouse dies.

(This shows up only on the Survivor and Insurance reports.)


Income: Social Security

For Easy Money reports, you can set the portion of SS that is taxable or let the system

compute by leaving this set to 0%.

If the benefit is unknown, select the estimate button. For Optimal this will be the button

next to the Full Retirement Age Benefit field, for Manual it is the button with three dots.


Use the “NOT qualified

to receive SS benefits”

checkbox to turn off

Social Security benefit

calculations, including

spousal and survivor

benefits.

Income: Social Security Continued

Use the dropdown to select either Manual filing strategy or Optimal.

Manual: Enter an age to start benefits at, and the benefit that would start at that age.

Optimal: Enter the Full Retirement Age benefit to have the program calculate what would

be the most beneficial start age based on the client’s birth date.


Note: Amounts entered

should be in today’s

dollars, the COLA rate

listed at the top will be

applied to entered

benefit amounts from

today forward.

Income: Pensions

Two pensions

can be entered

per individual.


Survivor Benefits as a % of Pension is used for the survivor benefit after

normal life expectancy. Amount Payable $/mo to Survivor Now is any benefit

amount that would pay to a survivor if a death of owner occurred today.

Income: Other Income / Expense

Although Easy Money does not apply pre-retirement cash flow shortages and surpluses

to asset balances, items entered in Other Income/Expenses do affect assets. If using

Easy Money and enter pre-retirement income items that are being spent instead of added

to assets, show the corresponding expenses as Other Expense to offset the income.

Use Other Income/Expenses

to capture income or expenses

that do not fall into earned

income or annual expenses.


Tax Data: Tax Data Tab

Most income tax items are picked up automatically from other entries. Use Tax Data to

enter only items not already in other sections (such as capital loss carry-forward).


Tax Data: File Status/Options

To set the break points for state taxation of income, select “Tools” and then “Settings/ Defaults-

New Contacts”. Select the state to make changes to from the dropdown and enter the

breakpoints for that state. Select the appropriate boxes for Social Security taxation and

Retirement account withdrawal taxation.

When in a clients’ scenario and select the state for tax purposes, these breakpoints will be used.


Tax Data: File Status/Options


Select the appropriate Tax Filing Status, number of exemptions, number over 64 of blind,

and State for filing (and one for after retirement if they client plans on moving at that

point). Indicate if wages are exempt from FICA taxes, enter the Self-Employment Medical

Insurance Premiums, and enter alimony owed with an end age.

Tax Data: Itemized Deductions

Items such as charitable contributions, medical expenses, and property taxes can be

entered as Itemized Deductions instead of Personal Expenses.

Items entered in Itemized Deductions are picked up as expenses for Cash Flow and also

used for tax calculations. Deductions amounts used may change according to calculated

AGI in each year.


Liabilities

Enter liabilities for items such as credit cards, mortgages and auto loans in Liabilities.

Interest can be deducted from taxes by selecting the checkbox.

Residence mortgages may be tied to the asset by choosing Residence mortgage as the

type, and selecting the residence description from the Residence Asset drop-down box.


Liabilities

The program will calculate an amortization schedule for the loan using the Current

Balance, Monthly Payment, and Interest Rate. The loan expense will be automatically

stopped at payoff.

If the loan will be paid off early, use the Balloon Payoff Age. The payoff balance will be

calculated as an additional expense for that year.


Loan payments for

liabilities entered are

added as an expense

for cash flow.

Insurance: Life Insurance

Add, delete, suppress

benefits (for either or both

individuals), include cash

values in liquidity reports,

or select that the lower

limit for insurance need

calculations is equal to the

immediate cash need.

Premiums are included in

cash flow as an expense.

To have insurance appear

after retirement, enter a

Retirement Face Amount.


Insurance: Worksheet Tab

Use the “Worksheet”

tab to enter changes

such as an end to a

term insurance

policy or changes to

premium amounts.


Insurance: Misc. Insurance

Miscellaneous Insurance: Policies such as auto, homeowners, disability, and medical.

Premiums will automatically be included in cash flow as an expense.

The worksheet tab can be used to make future changes to premiums.


Personal Expenses

Personal expenses can be entered individually or lumped together as

a single miscellaneous expense. The list of expenses at the top of the

screen will show you a summary of your entries. Expense descriptions

can be edited once you highlight that expense in the summary list.

Entry fields will appear below the

summary of expenses when an item

is selected in the summary section

above. Enter either a monthly or

yearly amount, but not both (that

would double the expense).


Enter a current amount, retirement amount, Disability

percentage, and Survivor percentage per month or year.

Use Current Age and Retirement Age boxes in the center

of the screen for each expense, the future change table is

also available for fine-tuning expenses by age.

A summary of all expenses

appears in the Summary

(Current and Retire Age) box.


Personal Expenses

Quick Start Guide Thank you for taking the time to review the introduction to Quick Start Guide.

Questions?


Ask Money Tree’s Support Team

Toll free 1.877.421.9815 [email protected]

Total Planning Suite User Guide - Moneytree

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