Build Your NewRetirement Plan: Welcome and Introduction

You Hi everyone, I'm Coach Nancy from New Retirement and welcome to our eight.

Week Build you'd New Retirement Plan course.

Over the next eight weeks, we'll focus on learning about New retirement in Planner plus and guide you as you create a detailed and personalized financial plan. This slide details the contents of the eight lessons to during each lesson, we'll educate you around financial planning topics, explore specific sections of your plan, and teach you more about how to best use the Planner. Whether you're new to New Retirement or you've been using the tool for a long time, we hope that the course will support you in building your plan, improve your financial habits, and help you make informed decisions around achieving your financial goals. In this lesson, you'll get to know the new retirement team and philosophy, learn about the new retirement method, and explore the benefits of creating a holistic financial plan. Plus, we'll help you contemplate a few of the non financial influences that play a role in financial planning so that you understand why your values matter when you are creating a personalized plan. Although the New Retirement headquarters are in California, the New Retirement Team works remotely and employees reside in a wide variety of locations including the United States, Canada, Australia and Brazil, to name a few. The people who you'll be seeing regularly throughout your engagement with New Retirement are the Services Team led by Michelle Dash, who you may have met in our office hours. I serve in the role of coach and educator and if you've ever sent a question through our chat, you've probably already met Ray Debruy. Ray helps run our Service Desk, supporting you with specific questions about your membership and your plan, manages our Facebook community and live events, and also provides one on one coaching for our users. Our team collaborates with one another to ensure that you understand the Planner and have the support you need, including a wide variety of resources in our Help center, regular office hours, and plan specific support via the chat in the Planner. Please don't hesitate to reach out to the team if you have any questions. Last but not least, Bruce Lorenz is a CFP professional who offers fee only collaborative plan planning through New Retirement Advisors and frequently joins our classes and live events. Are you wondering about the philosophy behind the software, services and education? Our mission is to harness technology and lower the cost of support so that high quality and unbiased financial guidance is available, affordable and understandable to everyone regardless of age, income or accumulated assets. This means that our focus is on you. We believe that planning has multiple benefits and instead of endorsing a traditional narrative, we're here to educate and support you as you move through the planning process and ensure that the journey is a successful one. New retirement users always have the option to create a free plan and attend our monthly office hours because we believe that everyone should at least have a complete plan at their fingertips to monitor their financial status and run scenarios for better decision making and outcomes. For individuals who want all of the features of the software plus this eight week class, the basic subscription to Planner plus is available for $10 per month and for those interested in more courses, one on one coaching and or fee only advice, we also offer the Planner Plus Live and Advisor packages. We provide the knowledge, tools and experience that will help you unlock opportunities, create a plan and start putting it into action to achieve your financial goals. When you create a financial plan based upon your goals and priorities, you weave a variety of complex and interrelated elements into a roadmap for your financial future. And we believe that planning has multiple benefits. First, the mere act of planning can improve your financial literacy and help you establish financial habits such as budgeting and saving. And as you learn more about the important elements and interdependencies in your plan, you build a foundation for discovering new opportunities, sound decision making and relevant course corrections. Finally, establishing your goals, expectations and actionable items provides a means to measure and celebrate your progress towards achieving your financial goals. In short, having a written plan prepares you to take action and can lead to better financial outcomes. Continuing with our journey metaphor for your financial plan leads us to our next topic, the new retirement method, which is our planning process. The first step of the process is collecting and organizing your information. Once you've completed that task, we'll guide you in evaluating where you stand relative to a variety of measures, including your personal goals and priorities. During your journey, you'll explore opportunities and will provide the education and support you need with Planner plus features, newsletters and articles, courses and live events designed to increase your financial literacy and habits. As your plan evolves and you achieve your goals and since your plan is dynamic, you'll return often to update your plan as life changes as well as keep an eye on the road ahead as you balance what is most highly valued in life today with the possibilities of tomorrow. Now that you know a little more about what's behind the planner, we're going to move into the overview, which is where you land. Once you complete the onboarding process and the overview will become your go to for status checks, at the top of the page you can view your progress which includes plan completion and your roadmap Plan completion will ensure that you haven't omitted any important information and your roadmap is like a privately guided tour of your plan that helps you navigate the process, supports comprehension of your plan's interactivity, and helps you strengthen your plan. Next to your progress, you'll meet your digital coach with suggestions just for you. Your plan is constantly reviewed by a series of rules which align with financial planning best practices and provide you with feedback. As you build your plan, your coach suggestions can help you identify omissions, misunderstandings and opportunities. I recommend that you visit the digital coach often to access your personalized suggestions and reports and make sure you're on the right track. The assumptions toggle in the upper right hand corner of the screen is a very important part of the planner. This is because your plan is based on a number of assumptions such as general inflation and real estate appreciation, as well as rates of return on your assets and growth rates on your income, all of which you have the ability to influence. Once your data is complete and your assumptions reflect your outlook, you can view your plan outcomes on the overview through one of three optimistic, average, or pessimistic. So if you tell us your investments will grow at 2% pessimistically and 6% optimistically, you can use the toggle to apply the average assumptions and see how your plan will work out with a 4% return on your investments. Changing your viewpoint is a great way to explore the interactivity between elements in your plan. You can also change your retirement age through the Assumptions tab and quickly see the impact on your plan due to changes in any elements you have linked to your retirement age in the dropdown menus. Ultimately, you control all of the plan inputs and we reflect your status back on the overview. Moving down the overview, we see your Plan Health stats, which are the Chance of Success and Income Score. These are based on the information you've provided and are unique to you. Your chance of success indicates whether or not your plan is going to be funded through longevity and is based on our Monte Carlo simulation and your income score represents the ratio of average retirement income to average retirement expenses from your retirement age through your longevity. Age scores over 81 mean you're in good shape. Next to your plan health stats we see the Plan Health graph with two lines. The light green line is your projected savings line. This is a linear projection based on your plan inputs, so it's applying your 4% or 6% growth rate year over year. While you may correctly read or hear that the stock market has averaged 10% over the long term you shouldn't expect that return every year and you may want another measure to refer to to evaluate any risk you face from volatility. The dark green line on the Plan Health graph is based on a Monte Carlo poor result and Monte Carlo is a statistical application commonly used in financial planning that we'll explore a little further in lesson 8. Overall the plan Health chart is provided as an analytical tool to determine how likely your plan is to work. I suggest that you review the results in this chart on a regular basis to help inform your planning journey. Keep in mind that when you model your plan with average values rather than the best case or worst case, the likelihood of running out of savings is different. So I always recommend toggling between your assumptions when looking at your results. We recommend measuring your progress towards your specific goals against a number of indicators such as your chance of success, income score, net worth, as well as your ability to meet your spending and legacy goals. Just like going to the doctor and measuring your blood pressure as well as your weight, it's important to measure your progress against more than one indicator. Below Plan Health we see the Income and expenses bar chart. In this chart we calculate your estimated average retirement income from all sources, including a safe 4% drawdown of your assets from your retirement age through your longevity age. Then we calculate your average expenses over the same period and present it in today's dollars. This helps to assess whether your income on average will cover your expenses through your longevity age. Incidentally, you can divide your average expenses by your average income to arrive at the income score we just discussed. And that passing score of 81 or higher means that on average, your income covers your expenses. The final chart on the overview is your net worth chart. Your net worth is the total value of your assets minus your debts. This chart allows you to view changes to your net worth over time and provides a great overall view of your progress towards any legacy goals. We're going to transition now to your money values. You've joined us in this class to learn more about the planning process, but first we want to explore some non financial essentials that may influence your direction. You are the most important element in your plan and the values you hold will underlie decisions such as how long you plan to work, how much you spend, and what type of legacy you want to leave. Our intention is to support you in building a plan that's tailored to you, not a one size fits all template. Before we dig into the financial details of your plan, let's learn more about you to ensure we're on The Right Track the first factor we're going to explore is your money beliefs. Your money belief system has an impact on where you are today and how successful you'll be in achieving your financial goals. Let's take some time and explore your beliefs and where they came from. From there, you can assess how they support your dreams and how they might hold you back. As you look at these questions, note whether any of them resonate with you. We have a number of worksheets available in your course materials to support you in thinking through these questions at your convenience as we move through the course. The second factor we're going to explore is your money style or approach to money. This slide presents some common styles. How you approach planning, spending and saving has an impact on your current status and your potential. Let's consider how your money style and your plan can work in unison to set you on the path for financial security. The next factor we're going to look at is financial security. Let's explore what financial security means to you and ensure that your plan accurately represents all of your aspirations. Imagine you had enough money to continue your lifestyle and never have to work again. If you choose not to. What does the life you never want to retire from look like? Taking some time with this activity might help inform your choices as well as your timeline. Moving forward. Our goal will be to ensure your ability to fund that life. Let's see what Coach Nancy's aspirations are. We've thought a little bit about what financial security means to you. Our final concept today is the meaning of money and wealth. Webster's Dictionary defines money as something such as coins or bills, used as a way to pay for goods and services and to pay people for their work. This slide presents a number of alternate definitions that might resonate with you, and you may have a few of your own to add. Instead of being guided by someone else's values, taking time to consider your own definition of wealth is another way to inform your planning. Wealth has been defined as an abundance of valuable material possessions or resources, all property that has money value or an exchangeable value, or all material objects that have economic utility. In our platform, you have the ability to create a personalized plan and realize your own definition of wealth. As you review this list, note whether any of them resonate with you. We're at the end of Lesson one of our Build you'd New Retirement Plan course. This slide provides your next steps for Lesson one as well as the topics we'll cover in Lesson two. Next week, we'll discuss a variety of accounts you may have and ensure that you know how to represent all of your accounts and assets as well as your asset allocation. In the Planner, we'll also talk about a common order of prioritizing saving any excess income you may have as you begin to think holistically about your financial journey. Now I'm going to head into the Planner and demonstrate the items we discussed. Today.

We'll begin our lesson one Demonstration on your overview to the upper right we have the Assumptions toggle which allows you to view your outcome on the overview through one of three particular viewpoints optimistic, average and pessimistic. You can combine these viewpoints with three budget scenarios and and three withdrawal strategies and observe the effects on your plan health. You can also change the retirement age on the Assumptions tab and quickly see the impact on your plan due to changes in any elements linked to your retirement age. In pull down menus. At the bottom right, you can use the chat function to search for articles, send the new Retirement Services team a message, and provide suggestions for our team. In the left menu.

You can access.

Expert help and services, live events and.

Community, as well as resources.

I encourage you to to spend some time in our Help center where you'll find a wide variety of articles and videos related to building your plan as well as check out our blog where you'll find information on all areas of financial planning. The Overview screen is where we guide you as well as summarize a variety of important information for you. At the top of your overview you can access your progress, which includes plan completion and roadmap, which is like a guided tour of your personal plan. You'll also want to check in frequently.

With a digital coach who has suggestions and reports just for you.

A number of important measures are summarized for you in the charts found here, including plan health, income versus Expenses and net worth. You'll also receive information from our explorers around optimizing your plan. Now that you're familiar with the overview, let's head into MyPlan where you can.

Complete your profile and goals.

You'll start your profile by entering your birth date, longevity age and retirement age. If you have a spouse, you'll add the same information for them and the planner will use your marital status to guide your tax treatment.

In the Objectives section, you'll identify what's important to you.

And the Notes section is where you can jot down additional details about your priorities and strategies. Heading into the Assumptions section of my plan, you'll see that we have four types of rates that influence your plan. The Planner default assumptions are provided as a guide which you may adjust according to your own research and beliefs. The areas here include general inflation, Social Security cost of living adjustment, housing appreciation, and medical inflation rates. You can also apply the assumptions toggle here instead of on the overview and view the impact of any changes on.

The charts to the right.

There are a variety of important charts available to your right while you're working in MyPlan. Key info displays your lifetime income projection, savings balances and projected expenses. Taxes displays your estimated total lifetime income tax as well as state and federal income tax. There are even more charts available in the Insights Library. We'll look at these as we move through the remaining lessons. We appreciate you joining us today and look forward to seeing you in lesson two.