Upgrades: Elimination of Strong Terms of Success and Failure

Elimination of Strong Terms of Success and Failure 

You may have read our article on the behavioral finance driven reasons behind presentation of the risk not as probability but as frequency, that is the number of people out of thousand. If you haven't, please read it by clicking here.

In a recent upgrade of the tool we have eliminated presentation of risk as success or failure as both these terms are strong and have connotations incongruent with the actual situation of the plan. If under unfortunate situation, the retiree's portfolio exhausts (or is near exhaustion), it is not necessarily a failure - the retiree will receive a part of his desired income. The percentage of desired income received in such situation will determine the pain associated with lifestyle adjustment. A retiree that will continue to receive 80% of his desired income will certainly not perceive his retirement income plan in the situation of portfolio exhaustion as a failed plan. So, the different views of the risk are presented as firstly the count of retirees out of thousand that received full income over the plan and the count that received partial income; then as the situation of an unfortunate retiree by describing the number of years of full income and level of partial income after that.

The presentation of risk in the client report has also been changed to reflect the positive aspect of the plan while still outlining the risk - for example, rather than present level of shortfall for unfortunate retiree, present the percentage of income that is generated. 


Other Upgrades:

  • Cash flow charts have been moved to Executive Summary
  • Existing Cash Flows panel has been renamed to Incoming Cash Flows to avoid the confusion with outgoing cash flows like retirement income
  • Better post-login guidance messages for a new free trial user 
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