Roth resources: Financial planning software

Version 2.2 of the popular financial-planning software was introduced in November. The application has several new features, including an internal Roth IRA conversion feature as well as a stand-alone Roth IRA conversion calculator that can be used by financial advisers who need to create financial plans for clients and prospects.
JAN 21, 2010
MoneyGuidePro Version 2.2 of the popular financial-planning software was introduced in November. The application has several new features, including an internal Roth IRA conversion feature as well as a stand-alone Roth IRA conversion calculator that can be used by financial advisers who need to create financial plans for clients and prospects. Both tools allow for extremely granular control over inputs and have sliders for easily adjusting the values in many fields. As with many of the features and tools found in the goal-based planning software, the Roth conversion tools are meant to be as useful in in-person demonstrations for clients as they are for adviser-only usage. “We decided advisers needed this ability at two levels,” said Robert Curtis, chief executive of PIE Technologies Inc., the company behind the program. “[They needed] something they could use while in the midst of creating a plan, as well as when they were focused just on this [Roth conversion] issue.” Advisers who sign up for a trial of MoneyGuidePro — but decide not to subscribe to the full product — will still be able to use the Roth calculator for free, according to Mr. Curtis. The list price for an annual license to MoneyGuidePro is $1,295, though many broker-dealers offer the application at a discount. For more information visit MoneyGuidePro To get a hint of what the Roth calculator looks like see the 16 Key Features Page Money Tree Software Distribution Solutions The newest software release from Money Tree, announced in August, includes a Roth conversion analysis. The Money Tree Roth Conversion report allows users to schedule conversions in any year and using multiple events. A specific amount can be taken into account for the conversion and the user can elect to have a specific percentage of the remaining IRA balance converted in a given year. It has a button that allows the user to specify if he or she wants to use the two-year deferral on a 2010 conversion. The report also allows the user to schedule withdrawals from the IRA or Roth account to create income. Withdrawals may be in a specified dollar amount with or without inflation factored in. The inflation increase factor may be started now or at a future date when the first withdrawal starts. Withdrawals have two options for tax treatment: paying taxes out of the withdrawal resulting in an income reduction or a gross-up of withdrawals so that after taxes, the spendable income will be the same as the requested withdrawal. The program automatically determines when a required minimum distribution is required, and calculates the amount due (the required minimum distribution may be skipped for 2009 under the IRS special rule). Advisers can download a free trial evaluation of the software. For more information visit the Moneytree Distribution Solutions page. Related stories: MoneyGuidePro Version 2.2 now available No shortage of tools for advisers looking to add business through Roth IRA conversions Approach Roth IRA calculators with caution Helping clients tap retirement savings Fidelity introduces Roth IRA conversion tool for RIAs, brokers Using Roth IRAs to build your business Click here to return to the INTech special Roth report

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