VeriPlan Overview 1: Personal Finance Decisions
VeriPlan Overview: Part 1 of 7
Improving personal finance decisions with VeriPlan
VeriPlan gives you significant personal insight into your most important personal finance and investment portfolio decisions. Through comprehensive and customized lifetime projections, VeriPlan’s integrated financial calculators and investment calculators model your particular financial situation across your adult lifetime. VeriPlan projects fully integrated scenarios about your income, expense budget, debts, investment portfolio assets, investment returns, and investment costs within the context of the U.S. federal, state, and local income taxes that apply to you. VeriPlan presents all your personal lifetime financial modeling information in clear graphics and data tables.
You can easily customize any of your personal data and settings in VeriPlan. After you make any modification, VeriPlan’s financial calculators and investment calculators automatically and instantaneously revise your complete lifetime projection. As you use VeriPlan’s rich set of fully integrated “what if” financial modeling tools, you take control of your own financial, investment, and retirement planning.
Personal Users: VeriPlan helps self-directed personal users to understand the possible future implications of current financial planning behaviors. VeriPlan projections model the lifetime finances of one or two adult users and their dependents. Any family member who resides in the same household may use VeriPlan.
Advisory Users: VeriPlan is a valuable tool for financial advisors who serve the fiduciary interests of their financial planning clients. Advisors can obtain a right-to-use VeriPlan on behalf of their clients, when they provide VeriPlan to their clients.
VeriPlan can help you to analyze important personal finance decisions, including:
- What tradeoffs are associated with accelerating mortgage loan payments or other debt repayments?
- Will I be have enough college savings to pay for my children’s education?
- How could my savings rate and investment strategy affect the size of my estate?
- After my living expenses, how much could I give or bequeath to family and charities?
- How large might my exposures to insurable financial risks be over time?
- How might different budgets for insurance premiums affect my lifecycle financial plan?
Investment Cost Reduction:
- What investment returns might I earn net of investment costs?
- How much could I waste on unproductive investment costs?
- How might I optimize my investment returns, while keeping costs to a minimum?
- How does my current investment strategy compare with a scientific strategy focused on long-term, risk-adjusted returns net of investment costs and capital gains tax?
Investment Risk Management:
- What returns might I expect from the balance of expected investment returns and investment risks that I have chosen?
- Am I saving enough to stay in my investment risk and return comfort zone and still reach my financial planning goals?
- If I were to lose income in the future, how long would my liquid investment portfolio assets cover my projected expense budget?
New Business Ventures:
- What are the likely long-term benefits and risks, if I fore-go current income to start a business?
- Could I self-fund my business venture or would I need external capital?
Personal Career Planning:
- What are the long-term economic benefits of changing positions or employers?
- Would returning to school to improve my career skills make economic sense?
- Could starting a business lead to both entrepreneurial and financial success?
Real Estate Planning:
- When will I have sufficient capital for a real estate purchase?
- How would increased mortgage debt affect my investment portfolio and other financial goals?
- Would I have sufficient investment assets to retire early?
- Would my investment assets be adequate to cover my expenses, if I live a very long time?
- What is a relatively safe asset portfolio withdrawal plan?
- Am I saving at a sufficient rate to fund all our future financial planning goals?
- How much benefit might I expect from increasing my income and/or reducing my expense budget?
- What is the long-term value of saving most of my bonus?
- Am I managing my investments from an income tax efficiency standpoint?
- How much should I put into either taxable, traditional retirement accounts, or Roth retirement accounts?
- Would my retirement portfolio assets be adequate after my income taxes and other taxes are paid?
Personal Financial Planning Software for Individuals
- Diversification and the credit crisis (The best personal investment and financial planning practices are durable and should not change because of market cycles and financial crises.
Less diversified active strategies tend of be sub-optimal, involving greater portfolio volatility and risk accompanied by higher costs in term of expenses, taxes, time commitment, and stomach acid. The best investment strategy is to seek [...])
- College Savings Calculator (College savings calculator software helps you to plan college savings and other education expenses for you and your children
VeriPlan's fully integrated and automated financial calculators and financial software tools help you to determine whether your current savings rate would lead to a sustainable financial plan across your lifetime.
In addition, the VeriPlan lifetime retirement planning calculator [...])
- Retirement tax optimization strategy (Optimal asset "tax location" strategies and drawing down traditional tax-advantaged assets, while delaying Social Security retirement payments
Investment tax location and Social Security tax optimization strategies could improve your lifetime financial plan. To understand how VeriPlan manages the automatic: A) reinvestment of positive annual cash flows from net earned income and other non-asset cash flows and [...])
- Protect Your Financial Security (The Only Real Protector of Your Financial Security Is You!
Reduce the Chances of Mail Theft
Never leave any outgoing financial letters containing checks or sensitive information outside in public for the postman. To receive mail, you should have a mail drop slot rather than a mailbox on the outside of the house. Always mail your financial [...])
- Contact Form (
If you have a question or comment, we would like to hear from you. Please use the form below to get in touch with us. Thank you!
[contact-form-7 id="4" title="Contact form 1"]
- Municipal Bonds and Marginal Income Tax Rates (Municipal Bond Investments and Marginal Income Tax Rates
Some investors hold municipal bonds in an attempt to reduce their tax burden. This article discusses the relationships between tax-exempt municipal bonds, marginal tax rates, and investment asset tax location.
An investor’s marginal tax rate is important, when making tax-related investment portfolio decisions. By combining your federal, state, and [...])
- Annual Tax Calculator (VeriPlan estimates your lifetime annual taxes in 8 different tax categories
The VeriPlan tax planning calculator projects your lifetime annual tax payments in 8 different tax categories. VeriPlan's fully integrated and automated lifetime annual tax calculator and retirement tax calculator capabilities automatically project your lifetime estimated taxes in these 8 tax categories:
Federal income taxes on earned [...])
- Career Education Financial Planning (Using VeriPlan as a Mid-Career Education Financial Planning Tool
VeriPlan can easily be used to analyze whether it is worth returning to school to improve one's earnings capacity. The following example explains the steps to take to analyze the value of obtaining additional education to further one's career by using VeriPlan as and education financial planning [...])
- Lifetime Income Projections (Understand your lifetime projected income from multiple sources after state and federal income taxes
VeriPlan's saving for retirement calculator software projects each of your income sources separately. Plus, it separately projects wage and salary and self-employment earnings for two different earners. With this sophisticated retirement savings calculator, you can control the growth for any income source [...])
- Fixed Income Investing (Use the best bond investment calculator to understand the projected value of your bond and fixed income assets across your lifetime
To develop your lifetime and retirement calculator projections using VeriPlan's compound investment calculator software, you can enter as many as 24 separate bond and fixed income asset holdings. For each of your current bond and [...])
- Stock Asset Allocation (Project the value of your stock and equity assets across your lifetime
To develop your investment growth projections, VeriPlan's stock investment calculator software allows you can enter as many as 99 separate stock and equity asset holdings. For each of your current stock and equity holdings, you can also enter your investment portfolio costs and your [...])
- Monthly Budget Planner Worksheet (Monthly budget planner worksheet
VeriPlan is the best personal financial planning software for individuals and families who want to develop a comprehensive lifetime financial plan. VeriPlan also includes a monthly budget planner worksheet covering 24 months.
Expense tracking, expense budgeting, and budget variance spreadsheets
This monthly expense planner covers 24 months and allows you to define your [...])
- Lifetime Investment Fees (Use a long term investment calculator to understand the lifetime costs of excessive investment fees
High mutual fund fees and other excessive investment fees are huge problems for the average individual investor. These excessive investment fees are the major factor that undermines the financial welfare of millions of Americans. The potential value of your investment portfolio [...])
- Financial Planning and Identity Theft Prevention (Financial Planning Security and Identity Theft Prevention
You should take the potential for financial identity theft very seriously, as a threat to your financial security. Identity theft can sometimes entail loss of your financial assets, whether small or large. However, very often it requires taking a very large amount of your time to rectify an identity [...])
- The Value of Future versus Current Consumption (These are some thoughts that I provided to a client couple struggling to live within their means, while also saving and investing for their future:
The most important long-term topic we discussed was how you as a couple can find a way to balance current consumption, which presently exceeds your dual incomes, against the need to [...])
- Cash Asset Allocation (VeriPlan's investment growth calculator helps you to understand the projected value of your cash assets across your lifetime
To develop your lifetime projections, the VeriPlan compound investment calculator allows you to enter as many as 24 separate cash and cash equivalent asset holdings. For each of your current cash holding in your investment portfolio, you can [...])
- 2013-12: December 2013 What Works in Personal Finance Newsletter (
December 2013 Newsletter
Concentrated holdings increase portfolio risk
For the full article, either click the title above or paste this address into your browser:
A significant portion of a portfolio may sometimes become concentrated in a single investment entity, which dramatically increases the overall risk of the portfolio. For 99.9+% of investors, there is absolutely no good reason [...])
- Roth Estate Planning Strategies (Roth IRA and Roth 401k Accounts and Roth Estate Planning Strategies
There are trade-offs when deciding whether to allocate contributions to Roth retirement savings accounts versus traditional retirement savings accounts that have deferred income taxation features. In the majority of personal finance situations, making 100% of allowable contributions to Roth retirement plans would probably not yield [...])
- Buying low cost mutual funds and ETFs (Do your mutual fund and ETF investment research – and do it BEFORE you buy
Screened mutual fund and ETF lists are very helpful to any investor who wishes to focus on low cost mutual funds and ETFs. However, this is just the beginning of the investment process and not the end. Always understand any security [...])
- Lifetime Savings Rate Calculator (Understand the current savings rate that is sufficient to meet your lifetime personal savings needs
If wealth were to be measured solely as assets currently owned, then financial and investment planning would be relatively simple. However, a much broader view is necessary. While higher income and more current assets obviously help, consumption differences between one person [...])
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