Financial Compass Screen Definitions

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Client Information and Data Entry Screens Your Goals Personal Information Financial Information Income Assets and Liabilities Survivor Needs Life Insurance College Funding Retirement Special Goal / Event Funding Disability Long Term Care Defaults and Assumptions

Analysis and Results Screens Summary Survivor Needs College Funding Retirement Disability Long Term Care Printing and Reports Reports Menu

Your Goals Screen

The Your Goals screen is the first data entry screen that is shown when you create a new client or open an existing client. This screen lets you identify the goals that are important to the client. For each goal that is checked on this screen, Financial Compass will enable the corresponding module and the data entry screens, analysis screens and report pages in that module.

Survivor Needs

The survivors' immediate cash needs and continuing annual income needs in the event of a death.

College Funding

The college funding needs for children's anticipated college expenses.

Retirement

The projected retirement needs and the current savings strategies to meet those needs.

Special Goal / Event Funding

The amount of savings needed to meet a goal or major purchase.

Disability Income

The income replacement needs in the event of a disability.

Long Term Care

The supplemental income needs in the event of a long term care event.

Personal Information

The Personal Information screen lets you enter personal details about the client, co-client and children, and their contact information. The names entered in this screen are used to personalize data entry screens, analysis screens and the content in printed reports. It is important to enter the names exactly as they should appear, including prefixes, suffixes and capitalization. The dates of birth entered in this screen are used to determine when planning events are triggered in each module, such as the year when retirement begins, or when a child begins college.

First Name, Last Name, Name of Child

The name of the client, co-client and children that are displayed throughout the data entry screens, analysis screens and reports.

Date of Birth

The date of birth in MM/DD/ YYYY format. For example if the client's date of birth is November 2, 1971, enter 11/02/1971.

Marital Status

The marital status of the client and co-client. Options are Single, Married or Domestic Partner. Choosing Single removes co-client information from the analysis. Choosing Married or Domestic Partner includes co-client information in the analysis.

Child of

This field is only visible when Domestic Partner is selected in the Marital Status field on this screen. The options in this field are Client, Co-Client and Both. The selection in this field lets you indicate the relationship of the child to the client and co-client. Financial Compass will reference this field when it is calculating Social Security benefits in the Survivor Needs Analysis.

Financial Information

The Financial Information of the client and co-client is entered in the two screens listed below.

1. Income
2. Assets and Liabilities.

Income

The Income screen lets you enter information about the client and co-client’s Annual Salary / Wage, Social Security and Other Sources of Income.

Annual Salary / Wage

The Annual Salary should be entered as an amount in today's dollars. Financial Compass will automatically increase this amount in future years by a cost-of-living adjustment that is entered in the General Inflation Rate field on the Assumptions screen. The Annual Salary / Wage field is used by Financial Compass as follows:

1. To calculate the goal or income objective for the Survivor Needs, Retirement, and Disability Income modules. The goal is based on a percentage of the client and co-client’s combined annual wage.
2. To calculate Social Security benefits, if selected. Social Security benefits are based on the projected annual salary of the client and co-client.
3. To calculate a source retirement income. When the client and co-client retire in different years, the Annual Salary of the person that retires last is applied to the retirement analysis as a form of income.

Do you contribute to Social Security?

The “Do you contribute to Social Security?” field lets you determine if a worker's, that is the client's or co-client's, earnings will be applied to Social Security benefit calculations in the Survivor Needs and Retirement analysis. If you select “Yes” in this field, Financial Compass will estimate the worker’s past and future earnings on the basis of their current-year earnings. Then Financial Compass will calculate the Social Security benefits for the worker and family members that are attributable to the earnings, and the worker’s date of birth, and start age for benefits. The worker’s current-year earnings are entered in the Annual Salary / Wage field on the same screen. The anticipated start age for benefits is defaulted to Full Retirement Age which is the age when the worker is eligible for full benefits. This age ranges from 65 to 67. The start age can be modified in the Social Security Start Age' field on the Assumptions screen. If you select “No” in this field, Financial Compass will assume the worker’s earnings are $0 in all years, and hence calculate $0 Social Security benefits for the worker and family members that are attributable to the worker’s earnings. If you select “No” in the fields for the client and co-client, Financial Compass will exclude Social Security benefits from the analyses altogether.

Other Income

This section lets you enter information about one-time and recurring sources of income that you want to include in the Survivor Needs and Retirement analysis. Examples of Other Income are: defined benefit pension plans, part time work during retirement, rental income, fixed annuity payouts, alimony, child support, Social Security benefits if the client or co-client is already retired, and so on. Do not include future Social Security benefits, or future income from 401(k)s, IRAs and similar defined contribution retirement plans.

The data entry fields for Other Income are as follows:

Name	Description
Owner	The primary recipient of the income. Options are the client or co-client.
Description	The description for the income. For example: DB Plan-ABC Company.
Amount	The amount of income to be received in todays dollars or future dollars.
Monthly/Annual	Select Monthly if the income is received on a monthly basis, or Annual if the income is received on a yearly basis.
Todays Value/Future Value	Select Todays Value if the income amount is entered in todays dollars, or Future Value if the amount is entered in a future dollars.
Lump Sum/Series of Payments	Select Lump if receipt of the income is a one-time event, or Series of Payments if receipt of the income is a recurring event.
At what age does income begin?	The age of the Owner when the income begins.
How long will this income last?	The duration that the income will be received. Options are: Life of the owner. Life of the owner and co-client. A specified number of years.
How many years will you receive this income?	The number of years that the income will be received, when Specified Number of Years is selected for the income duration.
Adjust this income for inflation? If yes, at what rate?	The annual cost of living increase, COLA. When Today's Value is selected, COLA is applied from the current year through the last year that the income is received. When Future Value is selected, COLA is applied after the first year that the income is received through the last year.
Percentage available to survivors in the event of death of the owner	The percentage of income available to the survivors in the event of the owner's death.

Assets and Liabilities

The Assets and Liabilities screen lets you enter information about Savings and Investments, Retirement Assets and Mortgage and Debts.

Type of Asset or Liability	Description
Savings and Investments	Includes assets such as savings and checking, mutual funds, stocks, bonds, etc. This type of asset does not include the value of the client and co-client's residence or savings specifically set aside for college funding. There are two ways to enter Savings and Investments:
Retirement Assets	Includes assets such as 401(k) plans, IRAs, 403(b) accounts and deferred annuities. This type of asset does not include defined benefit pension plans or payouts from annuities, which can be entered in the Financial Information - Income screen.
Mortgages and Debts	Includes current mortgages (or monthly rent if the client and co-client are not homeowners), and outstanding debts and liabilities such as car loans, student loans, and credit card debt. The current balance of these loans is applied to the Survivor Needs module.

There are two ways to enter assets and liabilities:

1. Summary -- This is the fastest way to enter assets and liabilities in Financial Compass. To enter a summary, enter total amounts for Investments, Retirement Assets, Mortgage and Debts in the fields on this screen. For example, if the plan includes several investment accounts, then you would enter the total of all investments on this screen. This is the fastest way to enter assets and liabilities in Financial Compass.
2. Detailed -- This is the more comprehensive way to enter assets and liabilities in Financial Compass. To enter a detailed list of the assets and liabilities, click the button to access the Details screen where you can enter information separately for each account or holding in the analysis.

The data entry fields for Assets and Liabilities are:

Name	Description
Description	The description for the asset or loan
Owner	The owner of the asset. Options are: Client Co-Client Joint
Current Value	The current value of the asset or balance of the loan in todays dollars.
Assumed Average Rate of Return	The effective, projected annual rate of return for the asset.
Monthly Savings	The monthly amount contributed to the asset. For Qualified Plans, Traditional IRAs and Roth IRAs, this is the amount contributed to the plan by the account holder or employee, and not the employer. This amount is capped per retirement plan contribution guidelines and catch-up provisions.
Monthly Company Match	This is applies to Qualified Plan assets only. The monthly company match contributed to the plan by the employer. The Monthly Company Match cannot exceed the Monthly Savings.
Interest Rate	The effective, projected annual interest rate for the loan.
Last Payment Date	The date when the last loan payment is expected.
Do you own your home?	Select Yes if the client and co-client own their home, or No if they rent.
Monthly Rent if you do not own your own home	The monthly rent for the client and co-client. This field is shown when client and co-client do not own their home.

Survivor Needs

The Survivor Needs screen lets you enter data that is used by Financial Compass to prepare the Survivor Needs Analysis. The analysis is designed to allow you to take a closer look at the income replacement needs and immediate cash needs in the event of the death of the client or co-client. If children were entered on the Personal Information screen, the income replacement percentage for the “children at home period” lasts until the last of the children is age 18. In addition, the Survivor Needs analysis will ask if you want to provide funds to pay off debts and a mortgage, provide for College Funding, as well as Final Expenses.

Name	Description
Income replacement objective	With children at home: Enter the percentage of the client's and co-client's combined annual salary that is the survivor's annual income need when children are age 18 or younger.
	With no children at home: Enter the percentage of the client's and co-client's combined annual salary that is the survivor's annual income need when all children are older than age 18.
Do you wish to provide funds to pay off your mortgage or provide a rent fund?	Select Yes to include a mortgage or rental fund in the survivor's immediate cash needs, or No to not include this amount.
Provide funds for college funding?	Select Yes to include a college fund in the survivor's immediate cash needs, or No to not include this amount.
Provide funds for a Final Expenses and Ready Cash Fund in the amount of:	Enter additional amounts for final expenses or cash funds that are included in the survivor's immediate cash needs.

Life Insurance

The Life Insurance screen lets you enter life insurance policies that are used by Financial Compass to prepare the Survivor Needs Analysis.

Name	Description
Insured	Select the name of the person on whose life the policy is issued.
Death Benefit	The face amount paid in the event of the insured's death. Note: For the Survivor Needs Analysis this amount is assumed to be paid to the survivors.
Policy Type	The type of policy issued. The option selected here is used for display purposes in reports and does not effect the calculation results of the Survivor Needs analysis.
Annual Premium	Annual premiums to keep the policy in force. The option selected here is used for display purposes in reports and does not effect the results of the Survivor Needs analysis.

College Funding

The College Funding screen lets you enter information about college expenses and savings information for the children in the file. This screen is part of the College Funding module, and is conditionally part of the Survivor Needs module when Yes' is selected in the Provide funds for college funding? field in the Survivor Needs screen.

There are two ways to enter information about college costs:

1. You can manually enter the college name, assumed cost in in today’s dollars, the years of college, and the percent the client and co-client expect to fund; or
2. You can click to access a database where you can look up and select regional college costs for specific colleges and universities.

• Note, the analysis can only be run on a child who is younger than 18 years old.

College Funding Information	Description
College Cost	Click this button to lookup the costs and regional averages for 2 and 4-year colleges and universities. The selection you make in the table will be applied to the College Name/School Type, Current Annual Cost and Years of School fields described below. The lookup table is displayed in a pop-up window. If this window does not appear review your pop-up blocker settings.
	College Name/School Type The name or description of the college.
	Current Annual Cost The annual cost for college in todays dollars.
	Years of School The number of years of college costs you want to fund.
	Percent to Provide The percentage of costs to fund.
Savings for College	Current Savings Balance The current balance of funds set aside for college.
	Current Monthly Savings The monthly savings currently being set aside for college costs.
	Expected Rate of Return The effective, projected annual growth rate for college funds.

Retirement Goals

The Retirement screen lets you enter retirement goals for the client and co-client.

What percentage of current income would you want to provide?

The percentage of the client's and co-client's combined annual salary that is their annual income objective during retirement. Annual salary is entered in the Income screen.

At what age do you plan to retire?

The age when the client and co-client's retirement begins. Financial Compass will begin the analysis at the earliest retirement age.

Special Goal / Event Funding

The Special Goal / Event Funding screen lets you enter one-time goals and events for the client and co-client. This screen is part of the Special Goal / Event Funding module.

Name	Description
Description	The description for the goal. For example, Wedding.
Amount Desired (Today's Dollars)	The amount for the goal in todays dollars.
Year Needed	The year that the goal or event will occur, entered in YYYY format. For example 2010.
Assumed Inflation Rate	The annual cost of living increase applied to the goal amount in future years.
Current Amount Saved	The current savings that is available to fund the goal.
Current Monthly Savings	The additional savings that is anticipated every month before the goal occurs.
Expected Rate of Return	The growth rate applied to the savings each year before the goal occurs.

Disability

The Disability screen lets you enter information about disability income replacement needs, and current and proposed disability insurance policies. The information entered on this screen is used for the Disability Income Analysis. The screen is divided into two sections as follows:

1. The top section collects information about existing disability coverage. This is collected for informational purposes only, and is used to determine how much coverage to recommend for a proposed disability event.
2. The lower section collects information about proposed disability income insurance coverage. This is information is required for the Disability Income Self-Insure Analysis and Disability Break-Even Analysis. The proposed policy may be based on the income replacement need if there are no existing policies or if all policies need to be replaced; or the differences between the income replacement need and existing coverage if purposing to supplement existing policies.

Name	Definition
Annual Salary / Income	This field is linked to the Annual Salary / Income field on the Income panel. Amounts entered in the Income panel will update the amount shown here, and vice versa. The Annual Salary should be entered in today's dollars. Financial Compass will automatically increase this amount in future years by a cost-of-living adjustment that is entered in the General Inflation Rate field on the Assumptions screen. For the Disability Income Analysis, Financial Compass uses this amount to determine disability income replacement needs and the income for the non-disabled spouse.
What percentage of current annual income would you want to replace?	The percentage of the individual's annual salary that is the income replacement need in the event of a disability. The income replacement need is based on the individual's annual salary and not the total household salary of the client and co-client.
What monthly disability income insurance benefits do you currently have?	The total monthly benefits from all existing disability income insurance policies. This amount can be entered as a total in this field, or you can click to access the Details of Disability Income Insurance Coverage screen where information can be entered separately for each policy. If two or more policies are entered on the Details screen then this field is locked, grayed-out and displays the total monthly benefit.
Proposed Disability Income Insurance coverage	Monthly Benefit Amount The monthly benefit for the proposed disability income insurance policy.
	Annual Cost of Living Rider The annual cost of living adjustment which would be applied to the proposed policy benefits.
	Benefit Period The benefit period from the options provided.
	Annual Premium The annual premium for the proposed policy.
Details of Disability Income Insurance Policies screen	Insured The name of the person on whose disability the policy is issued.
	Company The issuing company of the policy or a description.
	Monthly Benefit The monthly benefit payable to the insured.
	Policy Type The policy type from the options provided.
	Benefit Period The benefit period from the options provided.
	Annual Premium The annual premium.

Long Term Care

The Long Term Care screen collects information to prepare the Long Term Care analysis. This screen is available when Long Term Care is selected in the Goals screen. You may return to this screen at any time by clicking Long Term Care in the navigation bar. This screen is divided into two sections as follows:

1. The top section collects information about existing Long Term Care coverage. This is collected for informational purposes only, and is used to determine how much coverage to recommend in the proposed Long Term Care.
2. The lower section collects information about proposed Long Term Care coverage. This information is required for the Long Term Care Self-Insure Analysis and Break-Even Analysis. The proposed policy may be based on the replacement need if there is an existing policy or if there is need for new coverage to supplement any existing policies.

Name	Definition
What daily cost would you want to consider?	The daily cost for long term care in todays dollars.
What coverage do you currently have?	The total daily benefits from existing long term care insurance policies or displays the roll-up total of daily benefits entered in the Details of Long Term Care Insurance Policies screen. Click the button to access the Details of Long Term Care Insurance Policies screen explained below.
Proposed Long Term Care	Daily Benefit Amount The daily benefit provided by the proposed long term care insurance policy.
	Annual Cost of Living Rider The annual cost of living rider applied to policy benefits from the options provided.
	Elimination Period The elimination period for the policy from the options provided.
	Benefit Period The benefit period for the policy from the options provided.
	Annual Premium The annual premiums.
Details of Long Term Care Insurance Policies	Insured The name of the person on whose long term care the policy is issued.
	Company The issuing company of the policy or a description.
	Daily Benefit The daily benefit payable to the insured.
	Cost of Living Rider The annual cost of living rider applied to policy benefits from the options provided.
	Elimination Period The elimination period from the options provided.
	Benefit Period The benefit period from the options provided.
	Annual Premium The annual premium.

Defaults and Assumptions

The Defaults and Assumptions screen lets you enter underlying economic factors and assumptions for the client file. The information entered on this panel is applied to the client file that is currently in use. Because this screen only updates the current client file, it is suggested that you visit this screen when you create a new client file. To access this screen, click the button located on the top-right corner of every data entry screen.

On this screen there are two columns: Global Default and Current Case Default.

1. Global Default, lists the default values that are applied to every new plan that you create in Financial Compass. This column is shown for reference purposes and is not-editable.
2. Current Case Default, lists the values that are stored in and applied to the client file. This column is editable, and the values entered in this column are applied to the analysis.

The data entry fields shown on this screen are listed in the table below.

Field	Description
General Inflation Rate	The annual cost of living adjustment that is globally applied to expenses and goals in the Survivor Needs, Retirement and Disability modules, and to the Annual Salary / Income entered in the Financial Information - Income screen.
Social Security Benefits Cost of Living Increase	The annual cost of living adjustment applied to social security benefits in the Survivor Needs and Retirement analyses.
College Cost Inflation Rate	The annual cost of living adjustment applied to annual college cost in the College Funding analysis.
Long Term Care Expense Inflation Rate	The annual cost of living adjustment applied to the cost for long term care expenses in the Long Term Care analysis.
Assumed Rate of Return on Survivor's Assets	The effective, rate of return applied to the survivor's assets in the Survivor Needs analysis.
Life Expectancy age	The life expectancy age for the survivor in the Survivor Needs analysis, and the client and co-client in the Retirement analysis.
Number of Years to provide for Survivor's Rent Fund	The number of years to fund the survivor's rent fund in the Survivor Needs analysis.
Assumed Rate of Return on Disability Self-Insure Analysis	The effective, rate of return considered for the Disability Income Self-Insure analysis.
Assumed Rate of Return on Long Term Care Self-Insure Analysis	The effective, rate of return considered for the Long Term Care Self-Insure analysis.
Analysis Start Year	The analysis start year, which is the base or first year considered by the analysis.
Social Security Benefit Start Age	The start age for social security retirement benefits. For the Survivor Needs Analysis this is the age when social security retirement benefits begin for the surviving spouse, while for the Retirement Analysis this is the age when social security retirement benefits begin for the client and co-client.

Analysis Summary

The Analysis screen presents a bullet point summary of the planning modules you selected in the Goals screen, and provides navigation links to access the planning results for each module. The results will be displayed on screen. You may want to view the on screen results if you are working interactively with a client. In addition, even if you are not working interactively with a client you may find it helpful to view the on screen results before printing out a report. To jump to the results for a particular module click . To view the results for all modules in the order shown on this screen click the Next button. At any time you can click 'Analysis' on the left-side navigation bar to return to this screen.

Survivor Needs Analysis

The Survivor Needs Analysis consists of the following illustrations:

• Cash Needs
• Sources of Income Available and Projected Annual Income Shortfalls
• Common Types of Life Insurance

Cash Needs

This analysis illustrates the financial impact a death can have on the surviving family members. Funds could be needed for cash needs and the surviving family's ongoing income needs. Cash needs may include funds to pay for final expenses, pay off debts and mortgages, and ensure funding for your children's education. The information shown in this analysis is as follows:

Name	Description
Total Cash Needs	The sum of the cash need in the event of a death to fund the following: Final Expenses, Mortgage or Rent Fund, Debt Fund and College Fund.
Final Expenses	The amount entered in the 'Provide funds for a Final Expenses and Ready Cash Fund' field in the Survivor Needs screen.
Rent Fund	The amount needed to fund monthly rental expenses for a specified number of years. This row appears when you select 'No' in the 'Do you own your home?' field in the Financial Information - Assets and Liabilities screen. To calculate the Rent Fund the data below is considered. Monthly Rent in the Financial Information - Assets and Liabilities screen Number of Years to provide for Survivor's Rent Fund - in the Assumptions screen.
Mortgage Fund	The amount needed to pay off the current balance of all mortgages entered in the Financial Information - Assets and Liabilities screen. This row appears when you select 'Yes' in the 'Do you own your home?' field in the Financial Information - Assets and Liabilities screen.
Debt Fund	The amount needed to pay off the current balance of all debts entered in the Financial Information - Assets and Liabilities screen.
College Fund	The amount needed to fund the combined college costs of all children. The College Fund is equal to the combined annual cost in todays dollars. The College Cost Inflation Rate and other adjustments are not applied.
Less Assets	The total of all assets available to the survivors in the event of a death. This amount includes the 'Current Value' entered for all Savings and Investments and Retirement Assets in the Financial Information - Assets and Liabilities screen and 'Current Savings Balance' for children entered in the College Funding screen for children with college costs that occur in present or future years.
Less Insurance	The total of all life insurance death benefits payable in the event of a death, and is based on the policy information entered in the Life Insurance screen.
(Shortfall) Surplus from Cash Needs	The asset balance that remains after funding the cash needs of the survivors in the event of a death. A shortfall indicates the additional capital that is required to fund the cash needs of the survivors. A surplus indicates the remaining assets after funding cash needs that are available for the annual income objective of the survivors.

Sources of Income Available and Projected Annual Income Shortfalls

This analysis illustrates the annual income objective of the survivors, the income and assets applied to this objective each year, and any resulting shortfalls when income and assets are less than the annual income objective. The information shown in this analysis is as follows:

Name	Description
Capital Required for Income Needs	The amount needed in the event of a death to fund all future income shortfalls. This is the present value of all future income shortfalls, and is based the shortfalls shown in the (Asset Liquidations)/Surplus column and the Assumed Rate of Return on Survivor's Assets entered in the Assumptions screen.
Shortfall from Cash Needs	The shortage of assets to meet the survivors cash needs in the event of a death as shown in the Survivor Needs - Cash Needs illustration discussed above. The difference between cash needs and the assets and life insurance benefits available to meet those needs.
Additional Capital Required	The sum of Capital Required for Income Needs and Shortfalls from Cash Needs. This is the additional amount needed at death to fund shortfalls from cash needs and future income needs. Present value and growth rate assumptions are based on the 'Assumed Rate of Return on Survivor's Assets' entered in the Assumptions screen.
Remaining asset balance after funding cash needs	The net balance of assets and life insurance death benefits that remain after funding the cash needs in the event of a death. The remaining asset balance is the total amount available to fund the annual income objective after annual income sources are applied. This is the same amount shown in the 'Surplus from Cash Needs' row in the Survivor Needs Analysis - Cash Needs illustration.
Survivor's Age	The age of the surviving co-client.
Year	The year of the analysis. This column is shown when the client is single and hidden when the client is married or domestic partner, as selected on the Personal Information screen.
Income Objective	The annual income objective of the survivors. The amounts shown here are based on the client and co-client annual salaries entered in the Financial Information - Income screen, and the income replacement needs 'With children at home' and 'No children at home' entered in the Survivor Needs screen. The annual income objective increases each year by the General Inflation Rate entered in the Assumptions screen. 'With children at home' applies in years that at least one child is age 18 or younger, and 'No children at home' applies in years when all children are age 19 or older.
Social Security	The social security benefits received by the survivors. The amounts shown here are based on client and co-client information entered in the Financial Information - Income screen, and includes the benefits payable to the surviving children and spouse caring for minor children, and the retirement benefits payable to the surviving co-client. Social security benefits increase each year by the Social Security Benefits Cost of Living Increase entered in the Assumptions screen.
Salary / Income	The Annual Salary received by the surviving co-client as entered in the Financial Information - Income screen. This amount increases each year by the General Inflation Rate entered in the Assumptions screen.
Other Income	The income received by the survivors as entered under 'Other Income' on the Financial Information - Income screen. This amount includes all income 'owned' by the surviving spouse, and any income owned by the decedent when a value greater than 0% is entered in the field named 'Percentage available to survivors in the event of death of the owner.'
Investment Income	The income coming from the annual growth of assets. This amount is based on the Asset Balance in the preceding year and the 'Assumed Rate of Return on Survivor's Assets' entered in the Assumptions screen. In the first year this income is based on the amount shown in the 'Remaining asset balance after funding cash needs' label above the spreadsheet.
(Asset Liquidations)/Surplus	The spend-down or build-up of assets each year to achieve the income objective of the survivors. The spend-down of assets is shown as a negative value, for example ($10,000), and indicates the amount of assets that must be withdrawn to satisfy the net income objective after Salary, Social Security, Other Income and Investment Income. This amount is subtracted from the Asset Balance column. When the Asset Balance column is less than $0, a negative value indicates the overall shortfall of income and assets to meet the income objective that year. The build-up of assets is shown as a positive value and indicates the surplus income from Salary, Social Security, Other Income and Investment Income after fully satisfying the income objective for the survivors. This amount is added to the Asset Balance column.
Asset Balance	The end of year asset balance after adjustments for the spend-down or build-up shown in the (Asset Liquidations)/Surplus column. A negative value indicates the cumulative asset shortfall for the survivors. A positive value indicates the asset balance available to meet the survivors income objective in the next year.

Common Types of Life Insurance

This illustration is an information summary about common forms of life insurance.

College Funding Analysis

The College Funding Analysis consists of the following illustrations:

• College Funding Summary
• College Funding Analysis for the Child
• Additional Monthly Savings Required to Fund the Child's Education
• Some Common College Funding Options

College Funding Summary

A summary illustration of the college funding analysis for all children with college expenses that occur in the current or future years. The information shown in this analysis is as follows:

Name	Description
Additional Monthly Savings Required to Meet College Funding Goals	This is the additional monthly savings required to fund the college funding goals of child. The additional monthly savings are calculated for children with a college costs that occur in a future year. Children with no college costs entered, or college costs that begin in the current year or earlier are not shown in this illustration.
Children	The names of children with college funding costs in the current or future years.
Total Projected Needs	The total cost for college. This amount is based on the Current Annual Cost, Years of School and Percent to Provide entered for each child in the College Funding screen, and the College Cost Inflation Rate entered in the Assumptions screen.
Projected Value of Savings	The total savings available to fund college costs. This amount is based on the Current Savings Balance, Current Monthly Savings and Expected Rate of Return entered in the College Funding screen.
Projected Shortfall	The difference of Total Projected Needs and Projected Value of Savings, but not less than $0.
Assumed Rate of Return	The Expected Rate of Return entered for the child in the College Funding screen.
Additional Monthly Savings Required	The additional monthly savings required to meet the college funding goals of the child.

College Funding Analysis for the Child

A summary illustration of the college funding analysis for the child. This illustration is shown when the child has a college expense that begins in a future year. The information shown in this analysis is as follows:

Name	Description
Annual Cost of college in todays dollars	The amount entered for Current Annual Cost in the College Funding screen.
Percentage of costs to fund	The amount entered for Percent to Provide in the College Funding screen.
Annual amount desired	The percentage of annual cost to fund in todays dollars.
Number of years of school	The amount entered for Years of School in the College Funding screen.
Current value of education funds	The amount entered for Current Savings Balance in the College Funding screen.
Monthly Savings	The amount entered for Current Monthly Savings in the College Funding screen.
Assumed average rate of return	The amount entered for Expected Rate of Return in the College Funding screen.
Total Projected Needs	The total college funding need in future dollars. This is the annual cost to fund entire college term, increased by the College Cost Inflation Rate entered in the Assumptions screen.
Projected Value of Savings	This is the projected value of savings to fund college including monthly additions and growth in future years.
Projected Shortfall	When the Total Projected Needs is greater than Projected Value of Savings this is the difference.

Additional Monthly Savings Required to Fund the Child's Education

To achieve the college funding goals for the child this analysis illustrates the additional funds that may be needed, assuming the current and additional monthly savings earn the average rates of return as shown. This illustration is shown when the child has a college funding shortfall for an expense that begins in a future year.

Some Common College Funding Options

This illustration is an information summary about common options to fund college expenses.

Retirement Analysis

The Retirement Analysis consists of the following illustrations:

Projected Value of Retirement Assets

This illustration shows the current balance of savings and retirement assets today, and the balance of these assets at retirement including increases from annual growth and additions in years before retirement. The information shown in this analysis is as follows:

Name	Description
Projected value today	This is the total of all assets today, and is based on the 'Current Value' entered for all Savings and Investments and Retirement Assets in the Financial Information - Assets and Liabilities screen.
Projected value at retirement	This is the projected value of assets at retirement and includes growth and monthly savings in all years before the client attains the Retirement Age entered in the Retirement screen.

Sources of Income Available and Projected Annual Income Shortfalls

An analysis of the income objective during retirement and the income and savings applied to meet that objective. The information shown in this analysis is as follows:

Name	Description
Projected Value of Assets Available at Retirement	This is the projected value at retirement that appears in the 'Projected Value of Retirement Assets' illustration, and is the total savings available when retirement begins.
Age	The age of the client and co-client.
Income Objective	The annual income objective during retirement. The amounts shown here are based on the client and co-client annual salaries entered in the Financial Information - Income screen, and the percentage of income to be provided during retirement entered in the Retirement screen. The annual income objective increases each year by the General Inflation Rate entered in the Assumptions screen.
Social Security	The social security benefits received during retirement. The amounts shown here are based on client and co-client information entered in the Financial Information - Income screen, and includes the Social Security Benefit Start Age entered in the Assumptions screen. Social security benefits increase each year by the Social Security Benefits Cost of Living Increase entered in the Assumptions screen.
Other Income	The income received during retirement as entered under 'Other Income' on the Financial Information - Income screen.
Investment Income	The income coming from the annual growth of assets. This amount is based on the Asset Balance in the preceding year and the weighted average rate of return based on Current Value and Assumed Average Rate of Return data entry in the Financial Information - Assets and Liabilities screen.
(Asset Liquidations) / Surplus	The spend-down or build-up of assets each year to achieve the retirement income objective. The spend-down of assets is shown as a negative value, for example ($10,000), and indicates the amount of assets that must be withdrawn to satisfy the net income objective after Social Security, Other Income and Investment Income. This amount is subtracted from the Asset Balance column. When the Asset Balance column is less than $0, a negative value indicates the overall shortfall of income and assets to meet the income objective that year. The build-up of assets is shown as a positive value and indicates the surplus income from Social Security, Other Income and Investment Income after fully satisfying the retirement income objective. This amount is added to the Asset Balance column.
Asset Balance	The end of year asset balance after adjustments for the spend-down or build-up shown in the (Asset Liquidations) / Surplus column. A negative value indicates the cumulative asset shortfall during retirement. A positive value indicates the asset balance available to meet the retirement income objective in the next year.

Additional Monthly Savings Required to Fund Your Retirement

To achieve the retirement goals this analysis illustrates the additional monthly savings that may be needed, assuming the current and additional monthly savings earn the average rates of return as shown. This illustration is shown when a retirement funding shortfall is projected.

Features of Popular Retirement Plans

This illustration is an information summary about common types of retirement plans.

Disability Analysis

The Disability Income Analysis includes the following illustrations:

• Self Insure Analysis
• Break Even Analysis
• The Basics of Disability Income Insurance Policies

Disability Self Insure Analysis

This analysis illustrates a comparison of the annual savings needed to replace the income provided by the purchase of a proposed disability income insurance, in the event of a 3 year disability. The information shown in this analysis is as follows:

Name	Description
Assumptions	The data entered under for the proposed disability income insurance policy in the Disability Income screen.
Years Until Disability Begins	The number of years before the disability begins.
At Age	The age when the disability begins.
Total Premiums Paid	The total premiums paid for the proposed disability income insurance policy before the disability begins.
Total Benefits Received	The total benefits that could be received from the proposed disability income insurance policy assuming a 3 year disability.
Annual Savings Required to Self-Insure Benefits	The equivalent out-of-pocket savings that is required to match the benefits received from a proposed disability income insurance policy. Annual Savings Required assumes that this amount is saved in an account that is increased by the growth rate entered in the 'Assumed Rate of Return on Disability Self-Insure Analysis' in the Assumptions screen.

Disability Break Even Analysis

The Break Even Analysis illustrates the number of months a client would need to collect benefits from a disability income insurance policy in order to recover all the premiums paid. The analysis is based on client information that is entered in the Disability screen.

The Basics of Disability Income Insurance Policies

This illustration is an information summary about common forms of disability income insurance.

Long Term Care Analysis

The Long Term Care Analysis includes the following illustrations:

• Self Insure Analysis
• Break Even Analysis
• The Basics of Long Term Care Insurance Policies

Long Term Care Self Insure Analysis

This analysis illustrates the annual savings needed to replace the income provided by a proposed long term care insurance policy, in the event of a 3 year long term care event. The information shown in this analysis is as follows:

Name	Description
A 3 year stay starting in 2 years could cost	The total cost to fund a 3 year long term care event that begins in 2 years. Total cost is the annual equivalent of the 'daily cost you want to consider' entered in the Long Term screen, adjusted annually by the Long Term Care Expense Inflation Rate entered in the Assumptions screen.
A 3 year stay starting in 30 years could cost	The total cost to fund a 3 year long term care event that begins in 30 years. Total cost is the annual equivalent of the 'daily cost you want to consider' entered in the Long Term screen, adjusted annually by the Long Term Care Expense Inflation Rate entered in the Assumptions screen.
Years Premium Paid / Years Needs Start	The number of years that premiums are paid to fund a proposed long term care insurance policy before a long term care event begins.
Age in First LTC Year	The age of the client and co-client.
Long Term Care Insurance Benefits	Daily Benefit Amount Today The daily benefit amount in todays dollars, entered in the Proposed Long Term Care section in the Long Term Care screen.
	Annual Cost of Living Adjustment The annual cost of living increase applied to daily benefits, entered in the Proposed Long Term Care section in the Long Term Care screen.
	Daily Benefit Received in First Need Year The daily benefit amount in the year that the long term care event begins. This amount includes annual cost of living increases to daily benefits.
	Annual Cost for Insurance Premiums The annual premium, entered in the Proposed Long Term Care section in the Long Term Care screen.
	Total Premiums Paid The combined total of annual premiums paid in all years before the long term care event begins.
	Total Insurance Benefits Received The combined total of daily benefits received during a 3 year long term care event. This amount includes annual cost of living increases to daily benefits.
	Annual Percentage Return The return on investment equivalent for the Total Premiums Paid and the resulting Total Insurance Benefits Received.
	Percentage of Expenses Covered by Insurance The percentage of the cost for long term care that is funded by daily benefits from the Proposed Long Term Care policy.
Cost to Self Insure	Total Cost to Self-Insure The out-of-pocket expense to self-fund the "Total Insurance Benefits Received" from the proposed long term care insurance policy in the event of a 3 year expense.
	Annual Savings Required The equivalent out-of-pocket savings that is required to match the benefits received from the proposed long term care insurance policy. Annual Savings Required assumes that this amount is saved in an account that is increased by the growth rate entered in the 'Assumed Rate of Return on Long Term Care Self-Insure Analysis' in the Assumptions screen.

Long Term Care Break Even Analysis

This analysis illustrates the number of days that are needed to collect benefits from a proposed long term care insurance policy in order to recover all the premiums paid. The information shown in this analysis is as follows:

Name	Description
Years Premium Paid/ Year Needs Start	The number of years that premiums are paid to fund a proposed long term care insurance policy before a long term care event begins.
Age in First LTC Year	The age of the client and co-client.
Annual Cost for Insurance Premiums	The annual premium, entered in the Proposed Long Term Care section in the Long Term Care screen.
Number of Years Paid	The number of years that premiums are paid before the long term care event begins.
Total Premiums Paid	The combined total of annual premiums paid in all years before the long term care event begins.
Daily Benefit Amount Today	The daily benefit amount in todays dollars, entered in the Proposed Long Term Care section in the Long Term Care screen.
Daily Benefit Received in First Need Year	The daily benefit amount in the year that the long term care event begins. This amount includes annual cost of living increases to daily benefits.
Number of Days to Recovered Premiums Paid	The number of days it might take to recover the premiums paid for a long term care policy if the amount paid for premiums is applied directly to long term care expenses.

The Basics of Long Term Care Insurance Policies

This illustration is an information summary about common forms of long term care insurance.

Reports Menu

The Reports Menu is where you make selections to print a report of the current analysis. On this screen you can pick and choose the sections and pages you would like to print, the order of the pages, and formatting options. Every section consists of a summary page, also referred to as the Sell Page, that explains the needs as well as the action plan to the client or prospect.

To print a report:

To print a comprehensive a report that includes all available sections, click Show All, then Select All and then Include. To pick and choose the pages in the report, click on the pages in the left list-box then click Include.

After you have selected the pages that are in your report, you can modify the order of the pages by clicking on the page in the right list-box and then the Move Up and Move Down buttons. You can also select the format of the page numbers, printer type - color or black and white - and adjust the date shown on the report title page.

When you are ready to generate the report click the Print/Preview button at the bottom of the screen. Financial Compass will generate the report and display the results in a separate pop-up window. In the pop-up window are options that you can use to review the report on-screen, send the report to your printer, and save the report in a .pdf file format for email and archive purposes.

If the pop-up window does not appear when you print/preview the report, you may have a Pop-Up Blocker or Firewall that is preventing its display. If this is the case, you may want to review your settings to allow the pop-up window to appear successfully.

Modify User Information

The Modify User Information screen is where you enter details about yourself - the user of the program. The details that are entered on this screen will appear on the Title Page of client reports to identify the preparer. User Information is stored in your account settings, and loaded as the system default each time you login to Financial Compass. Some of the details on this screen relate to your software license and can only be modified by your System Administrator or Customer Support.

Open an Existing Client

The Open an Existing Client screen lets you choose an existing client file to open.

To find a client file, you can:

• Search for a client file by entering all or part of the client's last name in the look up field.
• Depending on the permissions assigned to your user account, you can click on My Folders> link and navigate to the folder where the client file is stored.
• Click on a column heading above the client list to sort client files by:
  Last Name, or
  Date/Time Last Modified.

About the Client List

The client list displays 10 client files per page. When more than 10 client files are available, page numbers are shown in the lower-left corner. Click on the page numbers to view different pages. The columns in the list are as follows:

Column Name	Definition
Lock Status	A lock that is open means the client file is unlocked and available for use. A locked that is closed means that the client file is in use by another user and not currently available. Only one user may access a client file at the same time.
Client Name	Displays the first and last name of the client, as entered in the Personal Information screen.
Modified Date	The date and time of last use.

Delete a Client

The Delete a Client screen lets you delete client files that are no longer needed.

To find a client file, you can:

• Search for a client file by entering all or part of the client's last name in the look up field.
• Depending on the permissions assigned to your user account, you can click on My Folders> link and navigate to the folder where the client file is stored.
• Click on a column heading above the client list to sort client files by:
  Last Name, or
  Date/Time Last Modified.

About the Client List

The client list displays 10 client files per page. When more than 10 client files are available, page numbers are shown in the lower-left corner. Click on the page numbers to view different pages. The columns in the list are as follows:

Column Name	Definition
Lock Status	A lock that is open means the client file is unlocked and available for use. A locked that is closed means that the client file is in use by another user and not currently available. Only one user may access a client file at the same time.
Client Name	Displays the first and last name of the client, as entered in the Personal Information screen.
Modified Date	The date and time of last use.

Supporting Materials

The Supporting Materials screen lets you access supporting documentation to use with Financial Compass.