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Target-Map™ "What you want" tab: Capital Requirements

Verify, edit, add and remove desired spending

Written by Mike S

Overview

Default Target-Map templates provide conversations of desired cash outflows goals. They attempt to place a total dollar value of desired spending as present value equivalents for starting goal funding discussions between an advisor and their client. The conversation topics are found on the What you want tab of a Target-Map as After-tax Cash Flow Desired.

Check your Target-Map Preferences to Align Spending Goals

Default Target-Map templates rely heavily on preset values found in Target-Map Preferences. These defaults serve as the essential variables and mathematical foundation for running any template.

To ensure accuracy and efficiency advisors should manage these settings in two ways:

  • Global Preferences: Financial professionals should update the global Target-Map Preferences to reflect their average client's needs. This ensures that every new Target-Map starts with a solid baseline.

  • Per-Case Adjustments: Defaults and specific variables can be adjusted on an individual basis by editing a specific Target-Map report after it has been generated.

Click on each tab on the Target-Map Preferences page to examine the default talking points and their associated default values. Adjust them to mimic your average client because those capital requirements will be placed on the "What you want" tab of a Target-Map. Rename our standard descriptions as you see fit on each type of Target-Map. Some Target-Maps allow you to add new spending line items to enhance your standard goal-funding conversations.

Edit Capital Requirements (What you want) After Running a Target-Map

After running the Target-Map, edit each line item as desired by clicking the pencil icon or the name of the item.

  1. Edit a specific Target-Map by clicking "Edit" on the Actions Menu (3 dots icon)

  2. Click the "What you want" tab

  3. Click the pencil icon or the description to open the associated form.

  4. Edit the information as desired.

  5. Ensure the item is checked to make it part of the calculations.

Remove line items from the calculations

Uncheck an item to remove it from the calculations. This will remove it from the report out put as well but leaves it on the Target-Map for the advisor to use later if needed.

Delete the line item altogether

Delete the item to remove it from the Target-Map altogether.

Year-over-year Cash Flow

You can review the year-over-year breakout of spending desire line items by viewing the Cash flow details page of the Target-Map. They will be listed on the cash flow table in the Capital Required column. Expand the column and click the linked headings to edit the desired cash flow from within the table if desired.

Add Other Funding Desires

  1. Click the "Add desired cash-flow" button and define the item by completing the fields.

  2. Press Create when done.

  3. Ensure the new item is checked to add it to the calculations.

Quick tip! For a one-time need instead of a repeating annual need, only fill in the START age field on the item. For example, purchase a car at age 75. Use the Start age field only to enter "75". Or set the timeframe for one year. For example, Start age = 75, End age = 76. The impact is the same.

Fixed Duration

Only use the Fixed Duration field checkbox if you want to lock in the quantity of years defined by the difference of the start age and end age. This field is most commonly used for the Long Term Care Target-Map. The quantity of years populates the Duration of Contributions field and locks the duration even as time progresses.

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