Rate of Return in a Glide Path
Assisting clients or plan participants in their pursuit of retirement readiness requires effective, engaging tools that empower your interactions. Visual aids are particularly effective, but they must strike the proper balance between adequate data and simplicity. Keeping illustrations easy to understand engages the individual and expedites the retirement education process. However, oversimplifying illustrations may present unrealistic results that don’t reflect good retirement planning. Using a glide path is a great way to illustrate a client’s rate of return over time.
Also Read: Connecting Your Clients to the Data | Eight Ways to Listen Better to Clients
Oversimplification often arises when illustrating a rate of return for retirement. Using a single rate of return keeps the illustration simple, understandable and interactive, but it may deliver a calculation that is too simple for retirement planning, especially for younger clients.
The newest feature of TRAK 2019, a fully customizable Glide Path, easily overcomes this problem. A Glide Path allows the rate of return to lower as a client nears retirement. This new feature, found within the Deluxe Desktop Version of the Quick Gap calculator, is easy to configure and implement. Further updates will soon add this tool to additional calculators within TRAK.
Also Read: Financial Planning Software that Wins New Clients
The TRAK 2019 update arrives with three default Glide Path options: Conservative, Moderate and Aggressive as shown in the grid below.
Each Glide Path can be customized with the number of years from retirement and the associated rates of return. The Glide Path can also account for a retirement rate of return (in the absence of a retirement rate of return, input will be displayed for the cash accounts for the input value.) A Glide Path may be associated with all Cash Balance accounts or with only selected accounts within the retirement planning tool. The feature may also be turned off to hide the prompts if desired.
At RetireReady Solutions, our goal is to make it as easy as possible for you to engage clients. We believe good retirement planning software helps you propel your clients toward retirement readiness. Keeping this as simple and effective as possible is our top priority. For more information, email our support team, download a free Demo, or call 503.831.1111.
Download a Free Trial of our TRAK Software Today!
Start a trial of TRAK today to see how a Glide Path can help illustrate your client’s retirement future.
