Income Discovery Pro version 3 has been enhanced with several new features to support a better retirement income analysis. The following list illustrates the new features added to this release.
- Optimization is now supported across all combinations of Social Security strategies, model investment portfolios and annuity purchases in Basic mode. In Advanced mode, optimize across Social Security strategies, model investment portfolios (including withdrawal order of tax-type accounts and individual account glide paths), and annuity purchase accounts.
- Auto configuration of three retirement phases based on the lifespan of members. The auto configured phases will have income split into 100%,87%,83% ratio.
- Defining phases based on the start and end ages of members.
- Auto adjustment of retirement phases. When a new phase is created, the start and end ages for existing phases will be changed such that the new phase appears in the correct chronological order.
- Auto configure Social Security claiming steps and find the claim strategy that provides the maximum benefits over lifetime.
- Analytics that model important Social Security retirement benefit-related rules that include spousal and survivor benefits, 2015 budget legislation driven changes, Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
- Models pre-retirement phase when a member is not retired at plan start.
- Salary and savings for each member.
- Distinct tax rate support during pre-retirement phase.
Investment Accounts and Strategies
- Account types are renamed from Taxable to Non-Qualified, Tax Deferred to Qualified, and Tax Free to Roth.
- Personalized glide path for a client–distinct allocation for each account and variation of the allocation over time based on when the account will be withdrawn from.
- Support for RMD withdrawal using both Cumulative Sequential and Pro-rata approaches.
- Added existing and new purchase of Fixed Indexed Annuities.
- Removed restriction on only one to-be-purchased Variable Annuity.
- Taxation of Social Security retirement benefit based on IRS worksheets.
- Support for Federal Tax brackets or effective tax rates.
- Detailed tax treatment of annuity payout in Non-Qualified and Qualified accounts using IRS rules.
- 2016 Federal Tax Rates.
Capital Market Assumptions
- 40 years of historical sequence based returns compared to 30 years in version 2.
Incoming Cash Flows
- Support for one-time sources of incoming cash flows.
- Future purchase of annuities.
- Live annuity quotes.