This article will walk-through how to create proposals of both options to present to a client. This article covers several tools in RightCapital and demonstrates how to pull them all together into a compelling presentation to a client.
First, we will need to create additional Plans. Each plan will represent one pension option.
Below we will detail the process of creating and comparing multiple pension plans.
Let's jump in!
Create multiple plans
Click here to learn more about how to create multiple plans. Once two additional plans are created (one for Lump-Sum Payment and one for Annual Pension), go on to the next part of this article.
Modeling an Annual Pension
Whichever Plan we have selected on the left-hand side is the Plan we will be tailoring our Action Items toward.
Enter all of the relevant information such as start year, annual amount, annual increase, etc.
Modeling a Lump-Sum Pension
This will reflect savings coming from outside the plan so as not to reduce the client's income. Name the savings card "Lump-Sum Pension" so that it will be easier to find when comparing the two options (as explained below).
If the client is going to take receipt of the pension, you can alternately enter an income amount to reflect the pension coming in.
At this point, there should be two Plans created and named after the two pension options.
Now on to the comparison!
Comparing Pension options
Open the Action Items to ensure the annual pension amount is input correctly and the lump-sum option is set to $0:
Check out the 'RightCapital Presents: Comparing Pension Payouts' webinar for a live demonstration!
Got multiple pension options on your plate? Reach out to our Support Team to walk you through best practices for data entry and presentation.