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
- VeriPlan Overview 2: Organization and Graphics (VeriPlan Overview: Part 2 of 7
A well-organized lifetime financial planning application with extensive color graphics
The VeriPlan personal finance software provides thirty-four user accessible worksheets organized into groups that have the same colored tabs. VeriPlan provides extensive internal and external hyper-linking to help you to get around quickly. VeriPlan’s primary worksheet groupings and the number of [...])
- 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 [...])
- Investment Risk Tolerance Questionnaire (Investors with different appetites for investment risk tolerance are more satisfied with investment portfolio risk exposures that are more in line with their ability to cope with investment financial risk and rewards.
Investors who are more risk-averse are more satisfied with a less risky investment asset allocation – regardless of lower expected investment returns or the [...])
- 2013-11: November 2013 What Works in Personal Finance Newsletter (
November 2013 Newsletter
You are a financial industry profit center
For the full article, either click the title above or paste this address into your browser:
Why allow the financial industry to help itself to your money? In case you did not notice, the financial services industry has not done the world any favors lately. The financial industry [...])
- Whole stock market investments versus strategy skews (Whole stock market investments versus investment strategy skews
Investors who decide to pursue passive equity index strategies still have a few very important strategy decisions to make. They can choose to buy the whole stock market or to adopt a “strategy skew,” when choosing stock index investment funds.
If an investor buys the whole stock market, they [...])
- Going Back to College (Evaluate the financial trade-offs associated with mid-career education
VeriPlan's personal financial planning software helps you to evaluate the financial trade offs associated with mid-career education and going back to college. VeriPlan's personal finance software helps you to determine whether your current personal earnings, savings rate, and investment strategy could lead to a sustainable personal financial plan [...])
- IRA, 401k, and Roth IRA Retirement Planning (Deciding between traditional retirement plan contributions and Roth retirement plan contributions
Whether or not to make investments into "traditional" tax-advantaged employer accounts and IRAs versus investing in "Roth" tax-advantaged employer accounts and personal IRAs is never a straightforward nor simple financial planning decision. The decision on the trade offs happens to be one of the most [...])
- Economic ETF trade size cost considerations (Economic ETF trading size considerations
This article discusses some considerations regarding efficient ETF trading and economic trade sizes. At the end of this section, you will also find two tables on ETF brokerage and trading cost amortization over 1, 3, 5, 10, and 20 year holding periods. There is one table on do-it-yourself ETF discount brokerage [...])
- Projecting the size of your future estate (VeriPlan's investment growth calculator helps you to project the size of your estate in future years
Your investment portfolio and other property assets are simply your evolving estate. These valuable assets could become your estate at any time. As you proceed through life and become more successful financially, you need to monitor the size and trajectory of [...])
- VeriPlan Overview 7: Satisfaction Guarantee, Documentation, and Household License (VeriPlan Overview: Part 7 of 7
VeriPlan financial software satisfaction guarantee, licensing, documentation, and system platform information
All of VeriPlan's worksheets provide extensive and readily available documentation. A separate manual about VeriPlan's personal financial management software and investment growth calculator features is not necessary, because all necessary instructions are in the software where you need them. Nevertheless, the [...])
- 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 [...])
- Long-term compounded real dollar and inflationary returns for the U.S. cash, bond, and stock asset classes (Long-term U.S. cash, bond, and stock asset class compounded returns
Many investors would like to have a better understanding of long-term historical investment returns, so that they can have a more realistic understanding of what investment returns might be in the future. This article informs interested investors about historical inflationary and real dollar returns for the [...])
- 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 [...])
- 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 [...])
- 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 [...])
- Tactical asset allocation and market timing (The best individual financial planning and investment rules and practices are enduring and should not change due to market cycles or a financial crisis.
This article looks at asset allocation strategy in light of the recent credit crisis. The credit crisis was a systemic, global financial event that affected any financial or securities instrument influenced [...])
- 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 [...])
- Measure Your Investment Portfolio Diversification (Gauge the level of your portfolio’s overall diversification with this free on-line tool
Whenever you invest in multiple mutual funds and ETFs, you may wonder how broadly and appropriately diversified your aggregate portfolio might be. Have your investment holdings and mutual funds that you have chosen increased the global diversification of your personal financial asset portfolio? [...])
- About (
About the author
Lawrence J. Russell is the author of this website and the books offered through this website. He is also the architect and developer of the VeriPlan software discussed on this website. He holds a BS from M.I.T. (1975), MA from Brandeis University (1979), and MBA from Stanford University (1982). Larry is a former [...])
- Are ETF expenses really lower than mutual funds? (Are ETF management expenses really lower than mutual fund management expenses?
Yes and no. When you look at the full range of ETF management expense ratios, you find the most ETFs have a management expense ratio under 1% per year. In contrast, the average expense ratio for mutual funds exceeds 1%, so obviously the majority mutual [...])
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