Modeling Pensions or Social Security Benefits in a Riskalyze portfolio is a powerful way to help clients better understand their overall present and future financial picture. There's an easy way to model these in a Riskalyze portfolio and Retirement Map using the Annuities and Insurance feature. Check out our video or written instructions below for a step-by-step walk-through:
As an example, let's try modeling Social Security.
- Start by creating a new account in your client's portfolio. Choose Annuity or Insurance as the type
- Choose ENTER CUSTOM, and enter Social Security and SS for the Company and Product, for example:
- Select Use Income Stream
- Enter the Monthly Benefit Amount in the Contract Value field
- Enter the Retirement Date in the Income Start Year field
- IMPORTANT: Toggle the Income Withdrawal Rate from % to $ and enter the monthly Social Security payout value. This is telling Retirement Maps to start crediting $1,825/month in income starting in 2035:
- Click SAVE and you're done!
Notice that Retirement Maps will note the income stream in the "invested like" box. In the following example, there are 4 years between retirement start date and when the Social Security benefits start (2030-2034).
Want to learn more about our Annuities and Insurance feature? Check out our article HERE.