Nothing should be hidden by Rob Tedder

, , 25 September 2018

If you’re a financial planner looking for useful tips and reference material on cashflow planning matters and beyond, relax – you’re in the right place.

With the end of the summer holiday season upon us, it is time to get back to work and get through some hard graft ahead of those dark winter nights. Fear not though: apparently the heatwave is going to carry on until November, so you can put your electric blanket away and keep the barbeque fired up for a while yet! Before you know it Christmas will be round the corner (dare I say there are only 13 weekends remaining?), and it will be time to dust off that giant flashing reindeer for the front garden once again, just to annoy the neighbours…

Dramatic pause. Cue drum roll…

Since the last blog over the last two weeks we’ve been applying the finishing touches to what has been building up to be another exciting landmark moment. Tomorrow sees the live launch of our integration with Intelliflo, and the next steps in our blossoming cashflow planning partnership.

We now have a slick and efficient cashflow modeling software integration with Intelligent Office (iO). Designed to make life easier and to simplify the data entry process for all our users, it will free-up valuable time that you can focus on engaging with clients, and their lifetime objectives.

Ask Rob……….Your question of the week
In this regular section, Rob Tedder – our Knowledge & Success Manager – answers a key question that we’ve received from an i4C software user.

Question: Does i4C take into account pension Carry Forward Allowances?

Rob says:
Following on from our previous Feature of the Week – incorporating tax into cashflow planning – another aspect to consider is how to ensure the correct tax relief is applied to pension planning.

If a person has an unused allowance of Carry Forward available at the start of the plan, the previous three years can be entered on the Person entry. This will be considered for any tax relief on contributions. If the field is left blank, the model will assume no carry forward is available. You must remember to update the brought forward carry forward figures on an annual basis, otherwise the tax calculations could be inaccurate.

The model calculates the annual allowance every year, and takes into account threshold income and adjusted income to taper the allowance where appropriate. This ensures you can fully demonstrate the tax benefits of undertaking specific planning within the model, and the value you can add for your clients.

Feature of the Week: ‘Transparency – Nothing should be hidden’
At i4C we believe that the information you put in to a financial plan should be easily understood, and visible, to ensure the user or client is fully engaged and involved in the process. How can you expect someone to have faith in a tool when they have no idea what happens to their data behind the scenes!

Nothing is hidden from you within i4C, whether you’re a planner, a compliance manager, a paraplanner, or even the client at the heart of the plan. The transparent nature of the tool empowers each of you to know what’s happening, and where.
As a firm, you are easily able to set the assumptions, whether inflation rates or growth rates to be used by your planners, ensuring consistency right across your business.

Narrative format
All data is presented in narrative format within i4C, eliminating the display of confusing lines of information. This enables clients to sense check their information easily – as if they were reading a story about themselves, which they and their financial planner can easily understand. Clients can even see their life plan laid out in front of them on the timeline chart, giving them full visibility on what is happening, and when.

It’s crunch time
If number crunching is your thing, you’ll love the access you have to data tables within i4C. You’ll find these displayed within the data output screens that provide a summary of all data input, and the calculations running behind the scenes. You can even access projections of each individual asset value, associated costs, income and much more, via projection charts. These help ensure you can really get under the bonnet of the information.

Once the financial planning scenarios have been created, you can make side-by-side comparisons, easily viewing the parameters that have been amended underneath. You can even amend these parameters from the comparison screen – without having to navigate away from the graphs – enabling the changes to be viewed in real time in the meeting. All it takes is a few simple clicks.

View changes easily
Finally, it’s vital that you can easily view changes made between financial scenarios. With i4C, you’ll see that changes away from the baseline scenario are highlighted in yellow, whilst exclusions are detailed in red. You can also export a summary of the inputs and assumptions for each scenario, creating a snapshot in time for the file.

Once again, this ensures that you, the client, the paraplanner and the compliance team can all easily see what’s going on within the cash flow planning model.

Article of the week
This is a great article highlighting the growing importance of paraplanners to financial planning businesses. Having been one, I fully appreciate the key role they play in ensuring not only the compliant nature of the planning, but also helping to generate income for the business.

The role of paraplanners is set to take on greater importance in the next three years

Until next time