The following process allows the Advisor to generate a proposal for a client using goals-based planning. Goals-based planning is an optional step following the Risk Tolerance Questionnaire, though a firm can configure it to be mandatory.

The process can be interrupted at any point and progress will be saved. Simply click the Investments Status line on the Opportunity row to resume.

Subadvisory vs Monte Carlo

The Goals Based Planning (GBP) engine operates in one of two modes: Subadvisory or Monte Carlo. This is set in your firm profile settings for the entire firm. The basic distinction is as follows:

• Subadvisory: Based on risk tolerance, goals, and funding, a recommended model, glide path, and probability of success are output at the end as the proposal. Subadvisor plans will automatically shift investment models over the course of the plan to provide the greatest chance of success.
• Monte Carlo: After determining the Risk Tolerance, an investment model is suggested based on the risk score. This model may be manually changed to another model before adding any more information. Then, after adding goals and funding, the probability of success with the selected model is shown.

Beginning a New Proposal

Goals-based planning continues from the existing Risk-based Proposal flow. After finishing the Risk Questionnaire, select Add Goals to continue to a goals-based plan.

Interface Overview

1. The overall progress indicator for the proposal.
2. The workflow of steps. Click any previous step to go back. To proceed forward, use the buttons in the bottom right.
3. Badges that indicate the current entries in each section. Some rounding may occur in the displayed numbers. Click any badge to return to that entry.

1: Risk Tolerance (and Model Selection)

The Risk Tolerance will be pre-set based on the results of the Risk Tolerance Questionnaire. If you wish to adjust answers to the RTQ, click BACK TO QUESTIONNAIRE at the bottom right.

If your GBP is configured for Monte Carlo, select the desired Investment Model before continuing.

Click CONTINUE TO DETAILS.

2: Details

The details section helps set a baseline for the planning engine. Some of this information may be prefilled if it was provided on the contact details. Fill in any remaining details for client date of birth, yearly gross income, state of residence, when social security benefits are planned and the planned monthly amount (this last one is optional and can be left blank). Click CONTINUE TO GOALS when you’re finished.

3: Adding Goals

Based on your client’s needs, add one or more financial goals as appropriate. The following goal types are available:

• Retirement ¹
• Education
• Future Purchase
• Income

¹ Only one Retirement goal may be set per proposal.

The exact details needed will vary in goal types. However, every goal will ask you to set a priority on the goal and a year that it needs to be ready by. So for example, what year the client plans to retire and start drawing on the funds. The priority of Dream, Wish, Want, or Need helps the engine determine which goals to prioritize.

The following percent chance of success is used to determine a passing plan based on the priorities selected for each goal: Dream 50%, Wish 65%, Want 75%, Need 85%.

Once a goal has been added, more can be added if desired.

Once at least one goal has been added, use the Continue to Funding control to advance.

4: Funding

Three potential funding options are available for planning. Note that this is for planning only, no funds are being allocated during this process. You may use any combination of the following:

• Existing Assets ²: Select from any open, held accounts for your client in the Portfolio Manager. You will also be able to designate any planned annual contributions.
• Initial Cash Contribution: Specify a cash amount the client will use to fund the account.
• Held Away Assets: Specify assets the client has that are not currently listed in the Portfolio Manager that will be used to fund the account, including planned annual contributions. You may add as many of this type as appropriate.

² For new Opportunities that do not have assets in the Portfolio Manager already, this option will not be visible.

Once at least one funding source (with a value greater than $0) has been added, use the CONTINUE TO PLAN control to advance.

5: Plan

Based on your inputs the planning engine will now return the likelihood of success or failure, the exact probability of success, and a number of charts showing the plan’s expected progress over time.

If the firm is configured for Subadvisory, this plan will also include a recommended starting investment model as well as a Glide Path, suggesting changes to the model over the course of time for optimal results.

If you need to, you can now return to any previous section and adjust goals to affect the probable outcome.

Once you have an acceptable plan, use the CONTINUE TO PROPOSAL control to proceed.

6: Proposal

The following fields can be edited or added to the prepared proposal before it is generated for your client:

• Proposal Name: An internal identifier name that is not client-facing.
• Introductory Text: Optional. Adds a cover-letter style page with the text input here. If left blank no additional page will be added.
• Add Custom Disclosure Text: Optional. All items in the proposal will have a standard disclosure text already. If you wish to add additional disclosure text, do so here.
• Logo: Image that will appear in the upper-right of each proposal page.
• Hero Image: An image used across the cover page of the proposal. If an image has already been added to the Advisor Profile, it will appear here. Otherwise you can add one here and it will also be added to the Advisor Profile for future use.

After setting your options, you can preview a PDF of the proposal in the upper-right.

To continue, select how you would like to proceed:

• eSignature: Begin the Docusign process for the Proposal with the client. If no email address has be given for the client, you will be prompted to provide one.
• Physical Signature: Prepare a printable version of the document to be signed as a hardcopy.
• Create Account: Proceed directly to the Advisor-led Account Opening process. The Proposal documents will be included in the final paperwork envelope.

Note that choosing any of these 3 options will finalize the plan, including queuing any trades proposed for held accounts.