In this article

  • Video: Key Financial Figures at a Glance (2' 30")
  • Overview
  • Set Preferences
  • Definitions

Please watch our video on the Key Financial Figures feature. Feel free to replay it, pause it, hop around and watch it at screen size.

Overview

In preparation for a meeting, Financial Professionals check the household's Key Financial Figures to familiarize themselves with the client.

It is a roll-up summary of important financial information on one page. They are categorized into four areas:

  • Family Planning Ratios
  • Accounts
  • Assets
  • Risk Management

They are calculated using the household financial entries throughout the Asset-Map Platform.

Set Preferences

Advisors have the ability to view their five favored financial statistics of the household on the household's Summary page. The top five can be selected and changed by editing the Key Financial Figures preferences, found by selecting "Key Financial Figures" on the drop-down menu under the advisor name. There one can choose the key financial figures that can appear on an Asset-Map as well.

Note: the generated electronic report will not include the financial figures presented on the screen.

Definitions

Family Planning Ratios

  • Debt/Equity Ratio is the value of all Liabilities divided by all Assets (as defined below), expressed as a percentage.
  • Assets is the monetary value of all asset instruments plus the cash value of any applicable life insurance instruments.
  • Total Assets Under Management is the monetary value of all asset instruments under the management of the financial advisor.
  • Dependent Assets is the monetary value of all asset instruments which are owned by a dependent in the household.
  • Liabilities is the total outstanding principal on all liability instruments.
  • Net Worth is the monetary value of all Assets minus all Liabilities (as defined above).
  • Home Equity is the monetary value of all asset instruments with a category of “Real Estate” (Residence) minus all liability instruments with a category of “Mortgage” or “Home Equity Loan”.
  • % of Assets in Non-Retirement Funds is the value of all “Non-Retirement” asset instruments divided by the total value of all asset instruments, including real estate and any insurance cash value, expressed as a percentage.
  • % of Assets in Retirement Plans is the value of all “Retirement” asset instruments divided by the total value of all asset instruments, including real estate and any insurance cash value, expressed as a percentage.
  • Earned Household Income is the annual monetary value of all positive cash flow instruments with a type of “W2”, “1099”, or “Earned”.
  • Wallet Share looks at three specific financial instruments: “Retirement” asset instruments, “Non-Retirement” asset instruments, and cash value of insurance instruments. The calculation is then the combined monetary value of these instrument types, under the management of the financial advisor, divided by the total combined monetary value of these three instrument types, expressed as a percentage.
  • Household Income is the annual monetary value of all positive cash flow instruments.
  • Less cash-outflows is annual monetary value of all negative cash flow instruments.
  • Net Household Income is the annual monetary net value of positive cash flow instruments minus negative cash flow instruments, i.e., (‘Household Income’ - ‘Less cash-outflows’).

Accounts

  • Accounts Under Management is the total count of all financial instruments under the management of the financial advisor.
  • Dependent Accounts Under Management is the total count of all asset instruments with a designated grantor or custodian that are under the management of the financial advisor.
  • Retirement Assets Under Management is the total count of all asset instruments with a category of “Retirement” that are under the management of the financial advisor.
  • Non-retirement Assets Under Management is the total count of all asset instruments with a category of “Non-Retirement” that are under the management of the financial advisor.

Assets

  • Cash Value (Life Insurance) is the cash value of any applicable life insurance instruments.
  • Cash Value Under Management is the monetary value of all asset instruments (retirement or non-retirement) that are sub-categorized with an account type of “Checking” or “Savings” and under the management of the financial advisor.
  • Annuity Accounts (assets_annuity_amount) is the monetary value of all asset instruments that are marked as annuities (“Deferred Annuity” checkbox = True).
  • Annuity Accounts Under Management is the monetary value of all asset instruments that are marked as annuities (“Deferred Annuity” checkbox = True), and under the management of the financial advisor.
  • Non-Retirement Accounts is the monetary value of all asset instruments with a category of “Non-Retirement”.
  • Non-Retirement Accounts Under Management is the monetary value of all asset instruments with a category of “Non-Retirement” under the management of the financial advisor.
  • Retirement Accounts is the monetary value of all asset instruments with a category of “Retirement”.
  • Retirement Accounts Under Management is the monetary value of all asset instruments with a category of “Retirement” that are under the management of the financial advisor.

Risk Management

  • Life Insurance Coverage is the total benefit amount for all insurance instruments with a type of “Term Life”, “Whole Life”, “Universal Life”, or “Variable Universal”.
  • Term Coverage is the total benefit amount for all insurance instruments with a type of “Term Life”.
  • Permanent Coverage is the total benefit amount for all insurance instruments with a type of “Whole Life”, “Universal Life”, or “Variable Universal”.
  • Total Monthly Long-term Disability Benefit is the monthly benefit amount for all insurance instruments with a type of “Disability”.
  • Total Monthly Long-term Disability Benefit Ratio is the Total Monthly Long-term Disability Benefit divided by the monthly Earned Household Income (the annual amount divided by 12), expressed as a percentage (bolded terms as defined above).

Total Daily Long-term Care Benefit is the daily benefit amount for all insurance instruments with a type of “Long Term Care”.

Tags: net worth, display, show, values, appear, print, advice

8/2020

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