Settings & Assumptions

Below are the current tax information NaviPlan uses for calculation:

Federal tax documentation

Federal estate tax documentation

State tax documentation

If you do not have access to NaviPlan Online, this procedure does not apply to you.

Passwords expire every 60 days in NaviPlan Online. When you change your password in NaviPlan Online, you can still use your old password to open NaviPlan Offline in Disconnected mode. However, to use NaviPlan Offline in Connected mode, or when you connect to the server in any way, you will need to enter the new password in NaviPlan Online.

To change your password, follow these steps:

1. Go to the Settings menu, and then select System Settings.



User Preferences - System Settings dialog box – Change Password tab

2. Enter your old (current) password.
3. Enter the new password using the following rules:
   • It must be at least eight characters long.
   • It must include two uppercase letters, three lowercase letters, two numbers, and one symbol.
   • It cannot include the word password.
   • It cannot match any of your past five passwords.
4. Confirm the new password by entering it again.
   Note: As you enter your password, the Password Strength graph changes. For your security, a strong password is preferable.
5. Click Change Password. If you entered all the information correctly, your password is changed. If your password did not change, check the error message to see if the reason is displayed. If you are unable to change your password, contact Client Support at (888) 692‐3474 or follow the "Changing forgotten passwords in NaviPlan Online" instructions below.
   

To request a new password in the event you forget your current password or lock your account, follow these steps:

1. From the NaviPlan Online login screen, click the Forgot your password? link.

   

   NaviPlan login page

2. Enter your NaviPlan user name.

3. Click Send New Password. You will receive a link to a secure site to reset or unlock your account.

   

   Password reset page

If you intend to import client or account information into NaviPlan, you must first select an integration source. To set-up an integration, follow these steps:

1. Go to the User Preferences menu, and then select System Settings.

   

   Settings - Integration

2. Go to the Integration tab.
3. From the Data Source menu, select the source from which you will import information.
4. To integrate a client, click here for more information.

When generating client reports, you can select the topics or sections you want included in the reports, and then save these selections as templates.

To delete a report template that is no longer needed, follow these steps:

1. Go to the Settings menu, and then select System Settings.

   

   User Preferences - System Settings – Legacy Templates

2. Go to the Legacy Templates tab.
3. Click next to the report template you want to remove.
4. Click OK to delete the template.

You can choose to create client reports in either portable document format (PDF) or rich text format (RTF). To select report output formats, follow these steps:

1. Go to the Settings menu, and then select System Settings.
2. Go to the Report Setup tab.



User Preferences - System Settings dialog box – Report Setup tab

3. For each of the listed report types, select an output format.

To set defaults for the inflation rate, income tax calculations, and annual account fees, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.

2. Go to the General tab.



User Preferences - Plan Settings dialog box – General tab

3. Under Specify Inflation Rate, enter the default inflation rate to use with new plans.
4. Under Income Tax Option, select the income tax method you want to use. If you select Average Tax, specify the default state tax rate.
Note: Based on your permissions and additional features, the Income Tax Option section may not appear, or the options available may differ.
5. Under HSA Contribution Limit, select either Single Limit or Family Limit for the plan default HSA limit rate.
6. Under Annual Account Fees, specify the default annual account fee percentage and select the account fee frequency. If fees are tax deductible, select the Fees are tax deductible option.
7. Under Account Reinvestment Strategies, specify how your accounts investment income will be reinvested:
   • Reinvest After-Tax pays investment income taxes from investment income then reinvests the remainder investment income into their source accounts.
   • Reinvest All invests all investment income into their source accounts, all taxes caused by investment income will be paid by cash flow.
   • Don't Reinvest converts all investment income into cash flow incomes, and will not automatically reinvest into any account, taxes will be paid by cash flow.

To enter the default retirement ages and life expectancies for new plans, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Milestones tab.



User Preferences - Plan Settings dialog box – Milestones tab

3. Enter the expected retirement age and estimated life expectancy for your clients and co-clients.

To enter Social Security assumptions for NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.

2. Go to the Social Security tab.

   

   User Preferences - Plan Settings dialog box – Social Security tab

3. For each Social Security benefit type, enter the percentage of calculated benefit that you want NaviPlan to use for cash flow calculations for all new clients and plans. By default, NaviPlan applies 100% of the calculated Social Security benefit during retirement, survivorship, and disability.

In NaviPlan, you can specify how your clients’ assets are to be rebalanced by selecting one of two methods: Current - Rebalanced or Current - Not Rebalanced.

• When Current - Rebalanced is selected, NaviPlan assumes the accounts are regularly rebalanced to maintain their asset allocation and applies the weighted average rate of return to accounts that are linked to goals.
• When Current - Not Rebalanced is selected, NaviPlan assumes the portfolio is never rebalanced and each account earns its separate rate of return for accounts that are linked to goals.

To determine whether all new plans will rebalance existing portfolios, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Asset Allocation tab.



User Preferences - Plan Settings dialog box – Asset Allocation tab

3. Under Current Portfolio Setting Default, select one of the following:
   • Current - Rebalanced – Assets in the plan are rebalanced as per the suggested asset mix.
   • Current - Not Rebalanced – Assets in the plan are not rebalanced.
4. Under Tax Impact of Reallocation Default, select if you wish to enable inclusion of tax consequences of capital gains on reallocation, by default this is checked.
5. Under Advanced Asset Allocation Default, select if you wish to have access to greater control over return rates in alternative plans, by default this is unchecked.
6. Under Asset Allocation Model Default, select one of the following:
   • Standard Morningstar – Morningstar uses 13 asset classes to generate its suggested portfolio.
   • Expanded Morningstar – Morningstar uses 18 asset classes to generate its suggested portfolio.

To enter net worth assumptions in NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Net Worth tab.



User Preferences - Plan Settings dialog box – Net Worth tab

3. Review the default Deferred Growth Rate for each item for both the Pre-Retirement and Retirement periods and make any changes you desire.
4. Review the Deferred Growth Rate for Real Estate Assets and make any changes you desire.
5. Review the Growth Rate for Business Entities and make any changes you desire.
6. Under Accounts, either check or uncheck the Redeem from accounts to cover deficits in the pre-retirement period option.
7. Under Liabilities, either check or uncheck the Cover any pre-retirement deficits created by liability payments option.

To enter cash flow assumptions in NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Cash Flow tab.



User Preferences - Plan Settings dialog box – Cash Flow tab

3. Under Specify Defined Benefit Pension Inflation Rate, enter the index rate for pension benefits.
4. Under Pre-Retirement Expenses, select the end date for pre-retirement expenses.
Note: For a joint analysis, when Retirement is selected, pre-retirement expenses end when the first client retires. When Death is selected, pre-retirement expenses end when the last client dies.
5. Review the Cover any pre-retirement deficits created by and choose from the below options:
   • Lifestyle expenses – Lifestyle expenses that cause pre-retirement deficits in the cash flow will be covered by account redemptions.
   • Medical expenses – Medical expenses that cause pre-retirement deficits in the cash flow will be covered by account redemptions.
   • Deductible expenses – Deductible expenses that cause pre-retirement deficits in the cash flow will be covered by account redemptions.

6. Review the Medical Expenses checkbox and select if you wish to allow HSAs to redeem from Health Savings Account for Qualified medical expenses by default.
7. Under Surplus Splitting, check the checkbox. Splitting will now be activated and available on the Enter Financial Data - Strategies - Surplus page.

To enter retirement income assumptions in NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Retirement tab.



User Preferences - Plan Settings dialog box – Retirement tab

3. Under Retirement Needs, enter the Percentage of current income needed in retirement and the indexation rate.

To set the default education inflation rate in NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Education tab.



User Preferences - Plan Settings dialog box – Education tab

3. Under Specify Education Inflation Rate, enter the index rate for education costs.

To enter the default insurance assumptions in NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Survivor Income tab.

User Preferences - Plan Settings dialog box – Survivor Income tab

3. Under Life Insurance, select one of the following insurance analysis methods:

   Analysis method	Definition
   Quick Assessment	The Quick Assessment calculates clients' additional insurance needs based on a comparison of their lump sum and ongoing needs to their assets available to offset those needs.
   Goal and Expense Analysis	The amount of life insurance intends to preserve the family’s economic security and net worth if the client or co-client dies. This calculation is integrated with the rest of the plan using goals and expenses at the plan level, as well as additional expenses entered for the life insurance scenario.
   Income Coverage Analysis	The amount of life insurance intends to replace any lost income as a result of the insured’s death.

4. Under Quick Assessment Settings, enter a default amount for Final Expenses when you use an insurance quick assessment.
   • You can opt to automatically transfer income data into the Quick Assessment by selecting Include Incomes as Entered in Plan.
   • You can opt to automatically transfer benefit data into the Quick Assessment by selecting Include Social Security Benefits.

To enter the default disability and long-term care insurance assumptions in NaviPlan, follow these steps:

1. Go to the Settings menu, and then select Plan Settings.
2. Go to the Other Insurance tab.



User Preferences - Plan Settings dialog box – Other Insurance tab

3. Under Disability Insurance, select one of the following insurance analysis methods:

   Analysis method	Definition
   Goal and Expense Analysis	The amount of insurance intends to preserve the family’s economic security and net worth if the client or co-client becomes disabled. This calculation is integrated with the rest of the plan using goals and expenses, as well as additional expenses entered for the disability income scenario.
   Income Coverage Analysis	The amount of insurance intends to replace any lost income as a result of the insured’s disability.

4. Note: The information entered under Disability Insurance is only applicable to level 2 plans.

   Under Long-Term Care, enter the typical value and frequency of long term care expenses you wish to apply to all new policies.

In the Advisor Details dialog box, you can enter details about the clients’ advisor(s) that will appear in client reports.

To add advisor details, follow these steps:

1. Go to the Settings menu, and then select Advisor Details.

   

   Advisor Details

2. Enter the advisor’s information. Fields marked with an asterisk (*) are mandatory.

3. Click OK to save the information.

   Note: Use the French tab on the top of screen to enter French advisor information or check the Use same as French checkbox to copy English advisor information to French.

In NaviPlan, you can set up default notes and custom content that can apply to all new clients and plans in User Preferences - Content Settings. You can modify preferences for individual plans in Results – User Defined Text.

To create system default notes or text additions for your Client Reports and Legacy Reports in NaviPlan follow these steps:

1. Go to the Settings menu, and then select Content Settings.



User Preferences - Content Settings dialog box - User-defined Text Quick Picks Tab

2. Select the desired content category by clicking the Category drop-down box.
3. In either Objective, Recommendations, or Action Plan; click Add:
   • Objective should be used for goal and objective notes.
   • Recommendations should be used for suggestions or recommendation notes.
   • Action Plan should be used for strategies and steps to meet client goals.
4. Enter your desired notes, then click OK to finish, or Add Text Entry to add another default note for this category.

To create system default custom content for your Client Reports in NaviPlan, follow these steps:

1. Go to the Settings menu, then select Content Settings.

2. Select the Client Report Custom PDFs Tab.

   

   User Preferences - Content Settings dialog box - Client Report Custom PDFs Tab

3. Click the Upload New PDF button.
4. Select your desired PDF file and click Import.