Retirement Contribution Analysis in TRAK



Welcome to this short video on a brand new set of features in TRAK that can help you educate your clients and show how future increases in contributions may help them plan for a more successful retirement. My name is Edward Dressel, President and Owner of Trust Builders. Our mission is towards retirement readiness, helping people both engage and understand how to successfully plan for retirement. And we work hard toward that goal, helping advisors engage and helping people understand about their own retirement.

Today’s feature is found both in the Quick Gap and the Gap Analysis calculators, I’m going to focus on the Quick Gap. The same sort of features are seen in the Gap Analysis calculator. I will hide the ribbon bar at the top. We’ve got a simple client here. If we look at retirement there is a little bit of shortfall after their thirteenth year and they run out of money. They’re out of money after that. The question is: what can they do to increase their savings in future years to save towards retirement?

One of the features that came out just a few months ago was the ability to show increased contributions. That goes off your screen a little bit but you can show increase in value. A one percent increase for five years and you can see immediately how that funds their retirement. You could bump this up to two percent and you can see now that they have plenty of money left at life expectancy. They have about a quarter of a million dollars. We could set it up that way. I’ll zero this out, but we could also compare different models side by side.

I’ll go to the brand new Contribution Analysis tab. Now if you just turned it on it may be way over on your right side, you can come over here and find it. You have to have a cash balance plan, either a Retirement Investment on the Other Accounts, Retirement Investment Accounts or a DC plan here for it to be enabled and it will work with both of those types of accounts. Now I can compare side by side the current strategy to an alternate strategy. So I could say, here’s the current strategy but I’m going to increase the value, we’ll go by one percent up to five years. And we can see that makes up almost a $300,000 difference in their account balance. And they need another $82 a month to fund retirement and they’re 92% funded.

Now the other option is we can add another strategy, come here and say three. We’re going to do the same thing. Rather than being at five percent were going to go to six and we’re going to increase the value by one and a half percent for five years. Now they’re fully funded so an immediate increase and one and a half percent for five years fully funds them and provides $116,000 in retirement. So we’ve got the strategies side by side. Let’s go back to the Retirement Years tab. So it’s not effecting this strategy, it’s just giving us an alternate strategy.

If we want to pick one of those alternate strategies, say the third strategy. Rather than coming and typing it in over here again, we’ve already typed it in once, let’s go over here and just click on Third Strategy and when I click on it you’re going to see that it automatically updates that, removes the strategy because it’s now the current strategy. And if we go look at Retirement Years, they’re fully funded and there’s their balance at life expectancy.

So the ability to play with, what happens if we increase contributions in the future. We’ve also introduced this, and I’m not going to get into detail in this video, but we’ve also introduced that into the Batch Processing Contribution Analysis. We can make one of the illustrations increase contributions.

We’re working hard at Trust Builders to help you engage your clients and educate them in a way that they go “You know this is really about me.” We’ve got a suite of tools towards that and we’re glad to talk to you. Update your latest version of TRAK, get playing with it and take a look. My name is Ed Dressel. I sincerely appreciate my customers continuing to use this and we’ll continue to work hard to help you be successful in your retirement planning practice. My best wishes for your business in this marketplace. Have a great day.