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
- 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 [...])
- 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 [...])
- 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 [...])
- 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 [...])
- Lifetime Tax Planning Software (Automatically project your lifetime federal, state, and local income taxes, capital gains taxes, property taxes, and other taxes
VeriPlan's tax calculator software automatically projects your real dollar tax obligations using current tax rates and tax limits that would apply in your particular situation. For example, regarding your income taxes and income tax rates, the VeriPlan tax [...])
- Asset Allocation Calculator (Understand how your lifetime investment asset allocation strategy would affect the growth of your financial asset portfolio
Your tolerance for investment risk is a relative concept -- rather than an absolute concept. Your tolerance for investment risk is relative to the investment risk tolerance of all other investors. Few people like investment risk, but some can [...])
- 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 [...])
- 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 [...])
- 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 [...])
- Guard Your Credit from Financial Identity Theft (Guard Your Credit in the Event of Financial Identity Theft
Without becoming a victim of identity theft, you can get a free credit report from each of the three credit reporting agencies once a year. Federal law requires the three major credit reporting agencies to provide these free reports annually. To satisfy their obligations, Equifax, Experian, [...])
- Choose the broadest available whole market diversification (Choose the broadest available whole market diversification
Another risk reduction objective should be to achieve the broadest possible securities market diversification within your overall portfolio holdings. Whenever several low cost investment funds are available, I suggest choosing the fund with the broadest market coverage. This reflects a preference for owning the entire market. Such funds are [...])
- 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? [...])
- 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 [...])
- VeriPlan Overview 4: Your Investment Portfolio Projections (VeriPlan Retirement Investment Calculator Overview: Part 4 of 7
Your investment portfolio and assets in VeriPlan
For each of your current investment portfolio asset holdings, the VeriPlan investment calculator software collects information about your share ownership amounts, values per share, investment costs, account taxability, and expected taxable capital gains distributions. The VeriPlan financial investment calculator automatically projects [...])
- Traditional Versus Roth IRA Decisions (Roth retirement investment strategies have a long payback period
When financial planners, investment advisers, and brokers advise their clients to convert their traditional IRA assets into Roth assets or to make annual Roth contributions rather than make alternative tax-deductible retirement account contributions, are asking for a huge leap of faith. Such proposals suggest that it would [...])
- Investment Risk and Return (Lifetime trade-offs between investment portfolio risk and investment returns
When making personal finance and retirement planning decisions, individuals must confront the dilemma that, historically, more conservative portfolio investments have yielded substantially lower investment returns than the returns that riskier investments have delivered. With either lower or higher risk-adjusted market return strategies, you simply cannot have your [...])
- Debt Payoff Software (Decide whether accelerated mortgage debt and other accelerated loan repayments make sense for you
The VeriPlan personal finance software allows you to evaluate different loan payoff strategies across your lifetime financial plan. You can model higher monthly payments that accelerate the repayment of any particular loan or all loans. VeriPlan will automatically shift some of your positive [...])
- 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 [...])
- VeriPlan Overview 5: Federal, State, and Local Tax Projections (VeriPlan Tax Calculator Overview: Part 5 of 7
The VeriPlan retirement planning calculator automatically projects your lifetime U.S. federal, state, and local taxes
With its fully integrated lifetime retirement tax calculator and income tax estimator features, the VeriPlan personal finance software automatically projects your lifetime tax obligations in eight different tax categories. VeriPlan automatically projects your financial [...])
- 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 [...])
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