Your asset allocation strategy allows you to align the risk of your investment portfolio with your relative risk tolerance. The VeriPlan personal financial management software provides five user selectable and adjustable asset management methods for your lifecycle projections. Fixed, variable, and age-based asset allocation mechanisms are provided by this tool. Reallocations of your assets are performed automatically at the beginning of all subsequent projection years.
Excessive investment costs are a huge problem for the average individual investor. VeriPlan's financial planning calculators automatically analyze the impact of five types of investment expenses across your lifecycle: 1) asset purchase fees, 2) asset management fees, 3) marketing fees, 4) securities trading costs, and 5) investment account custody fees. VeriPlan automates the comparison of your full lifetime investment costs. The VeriPlan cash flow analysis software compares the lifetime investment costs of your current financial asset portfolio to lifetime investment costs that you believe are reasonable to pay.
This financial calculator allows you to change your current expense budget levels and future expense budgeting growth rates. VeriPlan's budget worksheets also allow you to enter major planned expenses and their growth rates for any future years. You can also enter positive and negative expense adjustments and growth rates for any projection year. This tool explains how VeriPlan can be used as a Children's Education Expenditure and College Savings Tool. It also provides a section on how to use VeriPlan as a Mid-Career Education Planning Tool to model the financial tradeoffs associated with returning to school for career advancement.
Excess consumption and the attendant costs of debt can be very destructive. This debt management calculator allows you to set an interest rate for future unfunded consumption. VeriPlan automatically accumulates an unfunded debt with unpaid interest, when your projected expense budget exceeds your projected income and your cash, bond / fixed income, and stock / equity investment assets are projected to be fully depleted. If subsequent positive net income becomes available, VeriPlan will automatically retire some or all of this unfunded consumption debt.
Regarding any current loans that you have, VeriPlan's loan calculator automatically repays required interest and principal. You can also use this VeriPlan facility as a debt management calculator to analyze and plan for the accelerated repayment of any or all of your current loans.
VeriPlan's automated "centerline" projections are based on the very long-term, historical securities market rates of return that have been achieved in the cash, bond / fixed income, and stock / equity investment asset classes over approximately the past 75 years. You can adjust these projected rates of return, using VeriPlan’s Portfolio risk calculator. VeriPlan’s future value calculator projections automatically deduct your taxes and investment costs from your investment asset returns. Furthermore, across your lifetime, VeriPlan will automatically project the value of your real estate, property, and other assets, which are not priced currently on real-time securities markets. VeriPlan will use the current fair market value and future growth rate estimates and adjustments that you provide for these real estate, property, and other assets.
VeriPlan provides this financial calculator and mortgage calculator for users who plan to purchase up to three homes in the future. For your future home purchases, this financial planning tool automatically takes into account: a) the planned purchase price, b) closing costs, c) settlement cash required, d) mortgage debt to be assumed, e) expected interim price changes, and f) subsequent expected price appreciation.
VeriPlan provides two combinable methods to develop projections with asset class return assumptions that differ positively or negatively from VeriPlan's "centerline" historical assumptions:
VeriPlan also provides a Current Portfolio Revaluation Tool to help users understand the potential effects of substantial near-term changes in securities market values.
Individual investors face a dilemma. Both less risky and more risky investment returns strategies may not achieve desired results for different reasons. When assessing investment strategies with different risk levels, it can be helpful to understand how the "safer" portion of your investment portfolio assets might evolve across your lifetime. VeriPlan's Portfolio Safety Tool automatically projects how long your cash and shorter-term fixed income assets would cover your projected expense budget, if all your expected income sources ceased. This tool automatically measures your projected financial capacity to weather financial planning risks that might materialize in the future.
With this tool, you can set individual retirement ages for Earners 1 and 2. You can select whether or not to retire simultaneously. You can also adjust your expected ordinary living expense budget in retirement and the growth rate of those expenses. Concerning Social Security retirement payments, you can set current levels of your entitlements and adjust the age at which you would first begin to receive Social Security payments. Furthermore, you can scale back the amount of your projected Social Security payments, if you wish. Finally, because much older workers can face significant erosion of real dollar wage rates, you can adjust VeriPlan's assumptions about real dollar wage erosion for earnings at ages over 65.
Your settings on this retirement planning calculator will control your projected tax-advantaged plan contributions that would be funded from your future positive net income and/or your future taxable investment portfolio assets, up to the current legal annual limits, which are user-adjustable. This tool allows you to determine the portion of your projected annual contributions that would be deposited automatically into either traditional retirement accounts or Roth IRA and other Roth retirement accounts.