Five things you didn't know about Timeline

By now, you’ve probably used most of the features Timeline has to offer to illustrate, create and manage sustainable withdrawal strategy for your clients. We recently discovered that not all of them are used as frequently by our users. From Rebalancing to Legacy, our listicle covers some of the advantages of using these features.

5 Things You Didn't Know About Timeline

  1. Manage templates
    Do you spend a lot of your time creating the same sort of plans over and over? Save yourself time by adding common account types, portfolios, rebalance strategies, spending strategies, and more to a template. Our latest feature allows you to save your scenarios and return to these at any point without losing the data you’ve inputted for your client’s retirement portfolio.
  2. Legacy
    Legacy is a great tool to use as part of Timeline if you have client’s that wish to leave money to their beneficiaries, for example, their own children or grandchildren. If you’re given this information, you can use the advanced setting to set the legacy amount to look at the likelihood a portfolio will provide lifetime income for your client, whilst leaving a legacy of x to the beneficiaries.
  3. Spending Rules
    This feature allows you to look at various spending strategies you can apply to your client’s portfolio. The purpose of this is to allow you to set a percentage of the initial withdrawal rates and adjust these if the rates go above this. It will take into account the lowest amount of income your client will need from their portfolio in any given year, regardless of the withdrawal rate. One of the options within the spending rules dropdown includes the Guardrails. You may have heard of this previously, but we have included a link to a publication for the spending rules if you’re interested in finding out more!
  4. Rebalancing based on asset class boundaries
    Creating a robust and sustainable portfolio to meet your client’s needs is just the start. You will need to monitor and tweak your client’s portfolio to keep it aligned to their original allocation. When the asset class is altered due to different rates of return, this can present different levels of risk.In Timeline, you can try out more advanced balancing strategies than the traditional yearly rebalance. With “Rebalance based on asset class boundaries” the portfolio allocation is restored every time one of the assets reaches your specified boundary.
  5. Year-End balance
    This is a great feature for those looking to get an in-depth view of inflation data. The chart features here will show your client’s historical best-case scenarios for retirement in Green, worse case scenarios in red and the median journey which is shown in blue. Individual lines are calendar year returns e.g. if you started in any year in the past (say 1971) it will show you:

- How long will the portfolio last

- At what age would the portfolio run out of money

- How much legacy could you leave upon death?

- How would the balance change every two month

If you have a look at the box that pops up there are quite a few metrics that change every time e.g. mean return, max. Drawdown and volatility.

You can save a version of our infographic here

Comments

comments powered by Disqus

Sign up and get 30 days free

Schedule a Demo

Suggest a date and time