6 Reasons Not to Buy
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So, what's the problem? More Only that none of it makes any sense. It requires predicting the future of multiple financial factors with great precision over many years. It's impossible. I'm sure all of you know this (at some level), and have been uncomfortable at times with doing so. Clients struggle to budget for one year, no less 25. Do you really know how individual stocks will perform over 25 years? Are you confident enough about future tax laws that it's worth the effort to make such precise forecasts? We don't think so. Fortunately, there's an alternative. What matters before retirement is not how much the client earns and spends, but how much he needs to save each year to meet his future Goals. The MGP approach is to set an appropriate saving goal, and then manage to that goal. Yes, sometimes the client needs budgeting help to find the savings he needs, but it's a one (not a 25) year budget. Finally, you don't need to grow individual assets. That creates more detailed assumptions that are unsupportable and needlessly complicated. And, even more important, it creates a huge problem by skewing the portfolio allocation in both accumulation and distribution phases. In MGP, assets are grown as a single portfolio (properly reflecting tax categories) using long-term return assumptions based on the portfolio's asset class make-up. It simulates keeping the portfolio in balance. When you're predicting returns for 30, 40 or 50 years, simpler is not only better, it's also more valid. The MGP approach also simplifies tax assumptions. Since we're not basing the plan on annual cash-flow calculations, the only taxes we must handle are on the growth and liquidation of Investment Assets. Before retirement, this is accomplished by using the marginal tax rate and adjusting for capital gains and deferrals. It's easier to understand and usually more accurate.
We think... Detailed Cash Flow is the wrong way to plan BEFORE RetirementHere's an example of what we mean by Detailed Cash Flow before retirement. The client is age 40, and wants to retire at 65. It takes only 8 "simple" steps: (Please note the sarcasm.) 1) Create a 25-year budget of income, including expected future raises.
2) Create a detailed 25-year expense budget.
3) Grow assets individually to determine interest, dividend and capital gains earnings.
4) Estimate deductions for 25 years.
5) Calculate annual taxes, including AMT.
6) Calculate an annual surplus or shortfall.
7) Assume the surplus is added to Investment Assets (that's her savings for the year)
and that any shortfall reduces Assets.
8) Along the way, you may amortize mortgages, refinance, take out and repay loans, or borrow
from your 401 (k). Of course, you'll enter assumptions for all future loan rates.And we think... Detailed Cash Flow is the right way to plan AFTER RetirementThings change at retirement. There are fewer "moving parts" and fewer years over which to plan. Now Cash/Flow planning is the right way, and that's what MoneyGuidePro does, including:- Accounting for all income and all expenses
- Using full progressive tax tables and standard deductions
- Calculating RMD
- Spending assets by tax category groups, in a tax-efficient order
- Taxing appropriately by Tax Category
- Providing detailed year-by-year charts (just the way you like them)
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We think - Maybe it's time to Have Some Serious FUNFinancial Planning should be an enjoyable process for you and your client. People really like to dream about their future. And you're the one who can help make those dreams come true. That should be fun for both of you. Unfortunately, the combination of poorly designed, analytically-focused software and out-dated perceptions in the profession has made planning anything but fun. We're committed to changing all that.We also think - Clients want something differentClients are put-off by the complexity and intimidation of traditional financial planning. That makes your job unnecessarily difficult. How different would it be if your clients enjoyed the planning process? With MGP they will. When clients enjoy the process, they're more open to your recommendations and more likely to follow them over the long-term (even through down markets).But, of course, it's what you think that matters.If you're convinced that FUN has no place in planning, or that it really must be detailed and complicated to be professional, then MoneyGuidePro may not be a good fit for you. Fortunately you have all the other financial planning programs to choose from. -
What We DoMGP has a sophisticated tax system that is appropriate for long-term planning. It includes:- Calculation of marginal tax rates before retirement
- Full progressive tax-tables after retirement
- Automatic calculation of RMD
- Tax calculations by Tax Category (e.g. IRA, Roth, Taxable, etc)
- Taxation of Social Security Benefits
- Tax-free income sources
- Taxation of Stock Options/Restricted Stock
- Differentiation of LTCG from ordinary income
- Tax-deferral
- Immediate Annuity tax calculations
- NUAs & 72t distributions
- Estate Tax credits, gifting, ILITs
- Advisor control of tax assumptions
What We Don't Do- Detailed 1040 level calculations
- AMT
- Taxation of the growth or liquidation
of specific assets
Maybe you Need BothWe have many advisors who use MoneyGuidePro for their primary planning needs, and have a specialized program for clients who need detailed tax planning. There's one thing we know for certain: No program that's designed to calculate detailed taxes in the short term can be as good as MGP at long-term Goal planning. -
- Calculates Federal Estate Taxes (but not State)
- Illustrates the value of a Bypass Trust
- Creates a simple, clear Estate Flow Chart
- Shows the impact of gifting
- Illustrates the benefit of an ILIT
- Lets you model multiple Estate Scenarios
- Shows the impact of changing ownership of Life Insurance Policies
- Indicates if more detailed estate planning is needed
What We Don't DoThe advanced strategies that some clients need- CRATS & CRUTS
- GRATS & GRUTS
- FLPs
- GSTs
- QPOTs
- QTIPs
- BLOIs
- COLIs
- QPRTs
- GRITs
- TWERPs
- BERPs
Maybe you Need BothWe have many advisors who use MoneyGuidePro for their primary planning needs, and have a specialized program for advanced Estate Planning. There's one thing we know for certain: No program that has been designed to provide sophisticated estate planning can be as good as MGP at long-term Goal planning. -
What you Get for Your MoneyA one-year License FOR ONE ADVISOR ONLY.
This is important. Each advisor in an office must purchase his/her own license.
No sharing allowed - except by sales and administrative assistants.- All features and all functionality
- Standard Set of Model Portfolios
> Created and maintained by Harold Evensky CFP®
> Includes Historical and Projected Return Assumptions - All future updates at no charge
- FREE Training - live and on-demand
- FREE Support
- Delighted Clients
- Less Work
- More "A Clients"
FREE Trial- Try the full, production version of MGP free for 14 days. Be sure it provides the great value we claim before you buy it.
30-Day Money Back Guarantee- If, within 30 days of when you purchase, you're not satisfied that MGP is worth your money, we'll give you a full refund.
2 Year Price Lock- When you renew your license fee for the second year, your price will be the same as the first year, even if MGP has had a price increase
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We Can't Think of a 6th Reason
Since we had 6 Reasons to Buy, we thought we should have 6 Reasons Not to Buy, but could only think of 5. So, if you know of a good sixth reason, please let us know.
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