PlantechHub provides tools to analyze the client’s ongoing budget and spending before and after retirement. The client’s expenses may be addressed individually as a continuous budget or as a single ongoing expense. The conversation about expenses can become more specific as the plan matures. By addressing discretionary expenses and budgetary concerns, the client can see whether changes have impact on the plan such as reducing or eliminating discretionary expenses or making different debt and product decisions. The Data Gathering process automatically includes other plan elements which may impact the expense picture such as ongoing debt payments and insurance premiums.
PlantechHub provides a catch-all for base expenses defined as the Base Annual Living Expense. This is the necessary base cost of everyday expense items which the client may not need itemized as they typically will only change as life stages change like client retirement. The user decides how detailed the expense needs to be and can change as the ongoing plan matures. The plan can be as simple as a single Base Annual Living Expense, or a complete detailed ongoing set of expenses examining all aspects of the client’s spending habits.
The Data Gathering process automatically assigns expenses to planning elements like debt payments and insurance costs. If the debt is paid off, the debt linked asset sold, or insurance premiums end during the plan execution, then PlantechHub automatically removes the itemized expense item from the expenses at the appropriate time in the plan.
During Retirement Planning, the Data Gathering process captures a separate Retirement Living Expense value that will be used from that point in the plan forward in place of the Base Annual Living Expense. Additional changes can be modeled at specific ages to account for things like partners retiring at different ages. As with Base Annual Living Expense, the expenses can still be broken out at a detailed level and/or paired with the base value to provide as much or as little detail as desired.
Expenses can be flagged as discretionary as part of the data gathering process. Using this flag allows the planning process to enhance the conversation of changing or reducing expenses as necessary to satisfy the plan.