Digital Advice – Income Streams Strategy
Recommend Account-Based Pension strategy efficiently through Income Streams strategy.
Step 1 - Digital Advice - Create Scenario
Go to Digital Advice from within your client and create your advice scenario.
Select the Income Streams Strategy. Proceed to the Goal/ Strategy Linking page.
Link the strategy with the appropriate client goal(s) and click Proceed.
Step 2 – Pension Commencement Condition and Platform Selection
The next screen is the Conditions of Release where you select the conditions the client and/or the partner meet/s in order to commence the income stream. Click Next.
You will now come to the rollover screen where you select the funds to move from an accumulation superannuation fund into a pension fund. On the top left corner, you will see the condition of the release chosen. This can be changed by clicking on the change button and this will take you back to the previous screen.
On the left side of the screen you will see the client’s existing superannuation funds. This data comes from your client fact find and must be present before starting your scenario.
Choose to do a Complete or Partial Rollover by left mouse click on the selection buttons. The selection will change to blue and the value will be displayed immediately under this.
1) The funds to select to roll into on the right side of the screen is limited to pension funds.
2) Whilst the option to roll into existing may be visible, remember you cannot contribute to an existing pension fund. Digital Advice will allow you to roll an existing pension fund back to super accumulation, contribute funds to this and then you can use Income Streams to commence and roll into the new pension fund.
3) When moving the underlying assets, it is assumed that these assets are transferred to the pension fund and without any buy/sell costs.
Click Next to move to the Pension Details screen.
Step 3 - Pension Details
You can see and amend Pension details here. The details of age and purchase price will be prefilled based on the fact find data and the rollover amount respectively, while the minimum and maximum pension amounts are based on the calculations done on the rollover amount and client's age.
The recommended Pension field will by default contain the minimum pension amount. This can be edited and changed.
1) Any amount entered should lie between the minimum and maximum pension amount, else a warning message will appear below the field.
2) Maximum pension amount will be the same as the purchase price except when Transition to Retirement condition is selected where the maximum pension amount will be 10% of the purchase price.
3) All these values will appear in the output of your advice where you can edit further if required.
There are two other fields - Pension Payment – Assessable and Pension Payment - Tax Rebate which are editable fields and do not have any pre-filled values.
Once any changes are made, Click Proceed to Investment Portfolio
Step 4 – Investment Portfolio
In the middle screen, you will see all the underlying investments/assets from the superannuation fund are transferred. You can make modifications to the portfolio such as rebalance the portfolio, remove or add a new underlying asset or a model portfolio.
Click Proceed to Research
Step 5 – Fund Research
The research screen allows comparison across a client’s existing and recommended funds on qualitative data including contribution types, services, fund status, pension details, investment options, and other fund details.
You can add alternative funds to also compare by clicking on the New Funds icon. A column on the right will appear, search, and select your comparison fund. You can select multiple funds to compare.
Click Proceed to Fees
Step 5 – Fund Fees
The first screen compares existing funds and fees (shown on the right in the green section) to the recommended funds (shown in blue). This screen shows what the client is currently paying compared to what they will be paying after implementing the recommendations.
The second screen can be selected via the drop-down menu next to the client/partner name. This allows a comparison of the client/partner’s total superannuation balance if it was invested in any of the existing or recommended funds. Alternative funds can also be added and the Comparison amount can be changed.
Each line allows inline editing to enable you to make any changes quickly and easily. If you use standard fees and you believe these are incorrect, please email AdviserLogicSupport@Morningstar.com who will review, confirm, and update these for the next time this product is used. In the meantime, you can correct and produce your advice. Every effort is made to ensure all fees are up to date and correct however we appreciate your support in letting us know when, and if, you do find any errors.
Before leaving this screen, add Justifications for your advice.
You can use the Income Stream strategy combined with other strategies.
Example 1 – Combine super funds, contribute before commencing Account-Based Pension
Use super rollover to combine two accumulation funds, make a contribution, and then roll this into a new pension fund. Using Super Rollover, Contribution, and Income Stream together will allow you to achieve this.
Example 2 – Roll existing Pension back to super, combine super funds, recommence a new Account-Based Pension
Use super rollover to roll the pension fund back to an accumulation fund. Roll your total super funds into a new pension fund. Using Super Rollover and Income Stream together will allow you to achieve this. Note if you roll your pension fund into an existing accumulation fund, then this is ready to use to commence the new Pension fund.
If you roll your existing pension fund to a new super accumulation fund, you will need to commence the new Pension fund rolling over both this new fund, together with any other fund into the new pension fund. You will only need to do investment recommendations for the new pension fund.