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Getting Started Guide

Build Your Personal Pocket Plan

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Video Timestamps

00:51 – Create an Account
2:09 – Paid vs Free Account
2:52 – Onboarding
5:15 – My Plan explained
10:20 – Personal Profile
11:07 – Billing
11:46 – Adding Financial Accounts


14:07 – Financial Info
16:56 – Cash Flow
18:30 – Net Worth
19:45 – Investment Report
21:00 – Printing Reports
22:00 – Create a Scenario
23:23 – Advisors
24:41 – Getting Help

Full Video Transcript

In this video you’re going to learn how to set up your Pocket Plan. If you’re just getting started then this video will be very helpful for you because by the end of this video you’ll know how to get the most out of Pocket Plan.

So I’m going to demonstrate how to create an Pocket Plan account using the desktop version for the individual. If you are an advisor then you will have a separate video where I walk you through how to get started as an adviser. The first thing you want to do is go to the Pocket Plan website. Either you were invited by an advisor using one of their marketing links or you can set up an account on your own.  For this demo I’m going to use sandbox data to show you how the whole thing works. When you get to this page what you’ll do is Click create an account. From here you need to enter some information in order to create your account. That include your full name, email and password. If you prefer to use multi – Factor authentication so that you have a code that you have to confirm on your cell phone anytime that you login then I would encourage you to use Google or Apple to create your own account. When you use Google or Apple you’re going to be able to log in automatically with your Google or Apple credentials. So we will be able to validate with either of those companies if you have a profile and then they will send you the multi-factor authentication code. This is a tool for you to have increased security and to speed up the time it takes for you to login. Once you put in your information then you’ll need to decide which program you want, whatever you want, the free version or the paid version. During the trial you have access to the full software for one week but then if you want your data to automatically update after that week then you need to go ahead and choose a subscription. So now we have to go and verify our email address. All you need to do is just click on that link there and we just want to make sure that you are using the right credentials and they were not sharing any information on the shooting now we need to go through the onboarding process here this is really quick and easy to do and it just get some basic information that is used to build your initial plan. We want to start off by telling what you’re most interested in. What do you want help with with your Pocket plan? Maybe just managing wealth you may want some help with Investments. whatever the case may be next one out she was your birthday on so what I’ll do is I’ll actually use my birthday here May 15th and I’m going to just select that date next you’ll want to at least your spouse’s information so I do have a spouse with her name here and her birthday and the reason this is important is because we are doing all the math for you for making sure that your plan represent your reality so we’re going to build a financial plan for you based on the information they put in here so don’t just buy the window I want to retire at your stay at age 65 how much do I currently make let’s just say I’m making 4:45 and then how much are my current income do I want retirement so if I’m making $100,000 a year in retirement now and I want 85% of my income in retirement and that means that I’m planning to have $85,000 in retirement the reason this is important is because we want to do the math for you so give us the number the number to high you’ll find out how much of your current income are you saving for retirement this is looking at all of your income that he stated a few cards back how much of that is going towards retirement and this can include your employer match if you have that as well so I’m just going to say 10% to make things easy how much money do I have currently in retirement let’s just say I only have a hundred thousand bucks and then was it submit now back-end is doing the calculation for us in order to figure out what my retirement for is your retirement score is the probability of you not outliving your money before age 86 so the higher that retirement score is the better your odds of not running out of money before age 86 now if you’re like me you might be a little disappointed by this five-year on the screen but that’s okay because we’re going to show you how to improve that retirement score going forward. Here on the “my plan” page you have your retirement projection and this is going to show you your odds of not running out of money before age 86. Do you notice that there are three different colors of blue, green and red? Each of those colors signals a best-case worst-case or median outcome scenario.

So if you are more conservative and you say “hey I want to know what the best possible outcome for my situation is,” then what you want to do is you actually want to select which outcome you’re seeing. So if you’re very conservative you would say hey I’m going to use worst case scenario because anything that’s better than that is going to surprised to the upside so worst case scenario actually a run out of money at age 69. Now that’s not great if I retire at age sixty-five but what if I were to retire maybe I retire little bit later maybe I retire at age 70 so now I retire at age 70 I actually was able to extend my money now until age 76 this is really helpful for you because you can make some adjustments and you’ll notice my retirement or popped up a toy just by changing my retirement age so if you change the outcome you’ll be able to get a better understanding of where you are the reason that you can focus on best worse or medium case scenario is because we actually run this 1000 * meaning that we’re looking at your odds of success thousand times and the best median and worst case scenario actually signals out of those thousand trials what is the worst-case 10% of the time what is the best case 10% of the time and then in the middle there what happened and that philosophy you’re using that strategy we’re able to predict what the outcome is down here on this page are able to influence the input so if you want to adjust any of your answers you can do so right there and then you just have to assimilate the Monte Carlo now if you go a little bit further down you can see the model that being filled in for so we start at your current age and the current year we’re looking at your income how much money do you have coming in how much of that are you sending what are you contributing to your retirement retirement Investments how much is in stocks how much is in bonds how much is in cash and then what is the for folio value and you notice that we have the portfolio simulated portfolio the reason that we do this is that we want to introduce a variable or Randomness variable inside of the prediction meaning that we don’t want things just go up year after year and consistent manner because that’s not how life is right instead we want to do is we want to have a random input a random shot in order to make our plan a little bit more durable so every time you simulate. Monte Carlo we’re actually running a fresh 1000 simulations for you in order to figure out what your odds of success are so shocked if you run this a few times and you notice that you’re expected for Oleo value changes the reason being is we’re using actual historical turn based on stocks and bonds going back to 1929 so what you’ll notice is that overtime here your portfolio value should change along with your income in your expenses and retirement if you fast-forward here into the retirement age for me I said that that is age 70 you’ll notice that the screen is green that is to signify that we are in retirement so in retirement or expecting to have a 3.4 million dollars based on the stimulator portfolio we only have three million dollars in my Investment Portfolio would be 50% stocks 50% bonds at that point this is just a first draft review of your finances what it allows you to start thinking like a financial advisor thinking like a professional so that you have a better familiarity with what the what was the inputs are and and how to plan your future started here with your pocket plan because really what we need to do is go in and make sure that we are adding all the information necessary to build a good plan this is so helpful for you if you are going to be sharing this information with a financial adviser or with a spouse and you’ll want to go ahead and enter in your profile information here and along with your identity with even put in a photo here use this one of them cuz I like that one of him there you go and then you finish and now that will be uploaded so now your financial advisor will be able to see you there if you want to adjust any of your payments year you can do that just using the billing section and you’ll be able to add a payment method or to change your plant remember you created a pocket plan based on an advisor linked then that advisor is sponsoring your subscription so you don’t have to worry about paying a monthly fee because your advisors pick that up what if you don’t want that sponsorship you just go in and change your plan and you can pay for it yourself now under the financial info section you have a few different add to your vs. you’re connected accounts this will reflect any Financial accounts that you have already added in the pocket plan so let’s go ahead and start by adding in some accounts to do so I just have to quit and then we have to find the bank that we bank with what state we bank with Navy Federal and for this example we’re just going to use a Sandbox data and we’re going to go out to the institution and I were going answer that we can take a snapshot of your financial information we’re not storing your username and password we’re just taking a snapshot of what the account input look like to get the best results from pocket plan you want to add in at least three accounts you want to add in at least your bank account your credit card or an auto loan and then also a retirement account and you’ll understand why that’s so important here in just a minute so in order to follow through on that we’re going to add in a credit card let’s just stay from Chase and you’re going to go through the same process each time if you have multi-factor authentication that will pop up here and you’ll be able to add that in and then finally let that in a retirement account so what’s that in a guardian 401K plans are not available or if if you can add them in you may see that not all of the information comes through if that happened don’t worry about it we may be able to help you out with getting all the investment know the information as soon as it’s connected to now I’ve connected in my bank account I connected in my credit card and I have my retirement account all listed if I want to disconnect an account I realize at 8 I don’t need that account in here for the financial plan then you just hit delete once you have deleted the account is no longer connected with pocket plan meaning that you will not have any information feeding into pocket plant so let me go ahead and this time we’ll stay Capital One and we’re going out to the institution and we’re connecting that’ll update every time that you log in now what I’ve done is going over to the assets on the left side you have assets in or automatically categorized for you what we do is we classify all of the assets in your account based on their type so inside of your checking account we’re adding that money into cash if you had a brokerage account individual stock trading account you see that valuable nehsa annuities 529 will be listed here you can go ahead and add in a value of your residents or any other property that you have and then any money in a 401k or an IRA is going to be listed under retirement you want to add in for your house your your personal information as well as your spouse’s information in so that might be all in one account or am I be most will count you noticed hear that now my credit cards are categorized as or my auto loan and my mortgage is all categorized my phone Sue got a income helpful for you putting in your income and then also planning out your social security income when you add in your social security income we’re going to take that into account into your pocket plan so you’ll notice that your retirement projection gets a lot better just because you added in that social security income if you don’t know how to get that information don’t worry I’ll leave a resource so that you can figure out how to do so so you want to add in the annual income you also want to choose your marriage if your tax filing status we are going to make a projection on your effective tax rate give me an idea of how much of your money is going to taxes there and if you own a business make sure you tell us that or if you have some company stocks make sure that you tell us that as well so that we plant next we want to look at your insurance this is going to cover your property insurance your health insurance your long-term care your life insurance I’m all that will be input here and then fine your estate plan is going to be organized inside your pocket plants so your power of attorney any will the you have an advanced Medical directive all of that information can be stored here we don’t need the specific documents but if you can give us the contact information than we can check that off to say your pocket plan is complete so you want to make sure that you have that and if you don’t have it don’t worry about it because that’s what this is for it to build a list of things that you can do to improve your financial situation so now I setup my personal profile I’ve added in all my financial information here now it’s take a look at the reports that are available through pocket plan the first one that we have is our cash flow report and our cash flow report is our budget money coming in and money coming out you’ll notice at a high-level here’s the money that’s coming in here’s the money that’s going out and then we categorize the expenses by type your expenses are either essential expenses like your home your loans any any sort of insurance those are all going to be essential expenses are non-essential expenses are shopping eating out fast food or anything that is not necessarily a requirement then that is going to be tagged as non-essential and then your state would be any contribution to a retirement account or money that was not used for expenses and we can sort out what type of expenses we have so are non-essential expenses include our restaurant eating out on credit card taxi coffee shop those are areas where if we said hey you need to save a little bit more money we probably start there on next we have your savings this is going to reflect any deposits and then finally we have your essential expenses and you noticed that those are all listed there on the other side we have income that’s come in and then any savings contribution to see those as well and very helpful for you to get a high level overview of where your money is coming from and where it is going so you can adjust the time. I could go back and look at any specific amount of time there it will take some time to update if you go back more than a year because we have to pull in that information next report that we have for you is called the net worth report or the balance sheet I your net worth report is going to list all your assets on one side and all of your liabilities on the other and we have added those two together we have your network and in this example he have a negative net worth because I haven’t added in the property value but you’ll notice here that we haven’t – 16504 Network well we have a clear list now of all of our assets so you see our checking or savings or IRA or 401k or money market account in here and then are liabilities are listed here as well and institution the type and the subtype are all listed along with the value very helpful for getting a high level overview of what your financial situation looks like and where all of your accounts are listed the investment report is where you’re going to see any accounts that have investment Securities listed to a 401k and Ira a Roth IRA are all going to be included in the investment report on the first half of you just to get an idea of where all of the accounts are and then we actually look at the allocation of the portfolio as whole so you can choose all of these or just one of them in order to look at the total allocation the reason that we thought it was important was that we want you to make investment decisions with the big picture in mind too often we see a husband doing something separate than the wife and they are lined or communicating with the big picture we can get a better sense of where we are as a household and make sure that we’re well-positioned for meeting our goals you’ll notice that we categorize the investment of cash equities mutual fund ETFs and derivatives so if we look on the left side here you’ll notice the ticker and that’s telling you you know what the fund is the value of that and then what the type is so really helpful now if you’re getting ready to go meet with somebody or maybe you’re just going to have a conversation with a spouse you may want to print off the report here in order to have a physical copy I like setting this up for looking at things on a weekly basis so that I’m able to just make sure that I’m I’m keeping the eye on the big picture it’ll take a few seconds in order to print out the report but when you do you’ll notice it all your information is listed right there really helpful for you to save and I just use this to Benchmark where I was at specific I’m very hopeful on a monthly or quarterly basis of Benchmark where you work add an account we have over Financial reports created we understand how to influence our retirements for but maybe we want to dig a little bit deeper here and actually figure out how we can optimize our retirement so what I’m going to do is run a scenario scenario is just a hypothetical where I’m making twins two different inputs inside of my retirement plan in order to see what the impact it so you can change anything over here and then you can change anything except for these areas that are shaded I would advise you to start on this side with just changing your your retirement age or how much money you want in retirement before you start tinkering with these I just lowered my income replacement rate the amount of money that I want in retirement from 85% of my current income down to 55% of my current income and now what I’m going to do is I’m going to save my scenario and look at that now you can see that my retirement score has jumped up pretty significantly so what that tells me is it that is improve my odds of success in retirement significantly now because I’ve reduced how much money I need in retirement so now I may need to stay blessed in order to meet that goal that’s where you would want to speak with an advisor is do you know take action on that at any point you can adjust between the scenarios themselves if you decide hey I want to actually share this with an advisor and all you have to do is find that advisor inside of pocket planned here and you can connect with them once you connect with an advisor they will have access to your pocket plans so they’ll be able to see your assets or liabilities your income insurance is State all your financial reports will all be listed in available to them if you are not comfortable with sharing that information with them do not connect your pocket playing with them you should only connect that pocket plan once you’re comfortable sharing that information with them it’s important remember they are not giving you Financial advice until you have signed a contract with them like a plan is just aggregated the information connected you with those individuals we are not making a prediction about your future we are not giving you investment tax for legal advice and we are not saying that you should use a particular advisor instead what we are doing is can you a forum to find these people who can help you with solving your financial problems if at any point you have questions you can go right here to the help section and you can find a different articles different tutorials in order to get some help you can also just go ahead and click support and you’ll be able to enter your information there so I hope that you found this video helpful if you have any questions you need some help make sure that you reach out to us you can either do so via email or phone we’re always available to help answer your questions thank you so much and I look forward to seeing you on Pocket Plan. Take care. 

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