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
- Home Buying Calculator (Plan the future purchase of homes with a sophisticated home buying calculator
VeriPlan's fully integrated and automated financial calculators and financial software tools deliver financial planning power to the individual. VeriPlan's home buying calculator tool automates the lifetime financial planning process associated with future residential home purchases. VeriPlan's home buyer calculator functionality automatically take into [...])
- Too few low cost mutual funds and ETFs (Too few low cost mutual funds and ETFs – Far too many high cost funds
In screening and selecting low cost mutual funds and ETFs, you should understand this involves sorting and screening thousands of mutual funds and ETFs using databases from data vendors such as Morningstar and/or Lipper. It is shameful just how few low cost [...])
- Asset Allocation Strategy (Post-financial crisis commentary on tactical versus strategic asset allocation
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 [...])
- 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? [...])
- 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 [...])
- 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 [...])
- 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 [...])
- 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"]
- Deciding when to begin initial Social Security retirement payments (Deciding when to begin initial Social Security retirement payments
In general, whether to accept Social Security payments early, at full retirement age, or later is a decision you will need to make as you approach retirement. This decision can depend upon many factors, including but not limited to your expected cash flow requirements, your health and [...])
- 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 [...])
- Concentrated holdings increase portfolio risk (Portfolio risk increases dramatically with concentrated holdings.
A significant portion of a portfolio may sometimes become concentrated in a single investment entity, which dramatically increases the overall risk of the portfolio. While generally undesirable, there sometimes are unavoidable reasons for investment concentration. Unavoidable reasons for lack of diversification can include owning a private business or being [...])
- Savings and Withdrawal Rates (Understand how your current savings rate and retirement withdrawal rate would affect all of your lifetime personal financial planning goals
Along with your efforts to increase your earned income, your personal savings rate largely determines your lifelong financial planning success or failure by steadily and more substantially feeding your investment portfolio. The attempt to be clever [...])
- 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 [...])
- Exchange-traded funds (ETFs) versus mutual funds (Exchange-traded funds (ETFs) versus mutual funds
This article provides information about low cost ETFs, which account for only a few percent of the thousand plus ETFs and other exchange-traded products (ETPs) available to US investors. This article covers certain topics related to ETFs that are important to the investor who intends to use very low cost [...])
- 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 [...])
- Buy investment funds through low cost channels (Do not buy mutual funds and ETFs through high cost vendors
All mutual funds and ETFs are not created equally. Most are created to serve the business interests of the financial industry rather than to deliver investment vehicles that are likely to serve the best interests of individual investors.
Do not purchase any mutual funds or ETFs through [...])
- 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 [...])
- Non-traded REITs – relatively lousy investments (Research demonstrates that excessive expenses, conflicts of interest, and lack of markets cause non-traded REITs to be inferior investments
Research reports clearly show that non-traded real estate investment trust (REIT) securities are lousy investments. They are lousy, because an investor always has the alternative to invest in publicly traded individual REITs and REIT mutual funds and [...])
- 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 [...])
- 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 [...])
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