Goal plans, Efficient Frontier plans, and Risk Questionnaire plans created in earlier versions of Morningstar Office have been converted to the new planning module format. When you open any plan created in a previous version of the software, it will open in the new Investment Plan window. The sections below describe how each of the old plan types was converted to the new single plan type.
Although the new planning module will not support the creation of plans for institutional clients,we will still convert plans that have been created in previous versions for institutional clients. Fields required by the new plan type which are not applicable to institutional clients, such as gender and date of birth, will be hard-coded with default values.
When an existing Efficient Frontier plan is converted to the new format, the Plan Name, Description, Risk Profile, and accounts selected for funding carry through to the converted plan. All members of the client are automatically added to the plan.
All converted Efficient Frontier plans are automatically associated with the Morningstar Standard set of capital market assumptions. Minimum and maximum constraints for the individual asset classes which were defined in the Efficient Frontier plan will carry over to the new plan. However, changes previously made to the expected return and standard deviation values will not. The current allocation, previously-selected target allocation, and any model portfolios added to the efficient frontier plan will be displayed on the Efficient Frontier graph in the new plan.
Results of the Wealth Forecast in the old Efficient Frontier plan will not match the new Wealth Forecast values because of a difference in methodologies (Monte Carlo simulation vs lognormal forecasting).
The old Efficient Frontier plan did not include any information about income or expenses/cash flows, so all of the corresponding screens in the new plan will be initially blank, but can be modified. The Expected Retirement screen will be filled with default values.
The old Efficient Frontier plan also did not include the ability to construct a portfolio of actual securities, so the Allocate and Action Plan screens will be initially empty after an existing Efficient Frontier plan.
When an existing Risk Questionnaire plan is converted to the new format, the Plan Name, Description, Risk Profile, and accounts selected for funding carry through to the converted plan. All members of the client are automatically added to the plan. If you selected a specific date other than Current Date in the Funding page of the Risk Questionnaire plan, that date is ignored in the new plan.
All converted Risk Questionnaire plans are automatically associated with the Morningstar Standard set of capital market assumptions. The current allocation and the proposed allocation from the Risk Questionnaire plan will be displayed on the Efficient Frontier graph in the new plan.
The old Risk Questionnaire plan did not include any information about income or expenses/cash flows, so all of the corresponding screens in the new plan will be initially blank, but can be modified. The Expected Retirement screen will be filled with default values.
The old Risk Questionnaire plan also did not include the ability to construct a portfolio of actual securities, so the Allocate and Action Plan screens will be initially empty after an existing Risk Questionnaire plan is converted.
When an existing Goal plan is converted to the new format, the Plan Name, Description, Risk Profile, and accounts selected for funding carry through to the converted plan. Members selected for the Goal plan will be the members selected for the new plan.
Other information entered on the Overview page of the goal plan include:
Goal Type: ignored, as new module covers multiple goals.
Frequency: ignored if Lump Sum; if annual, used as defined below.
Amount Needed in Today’s Dollars: If frequency is annual, this value is transferred to the new Retirement Needs page.
The old Goal plan did not include any information about income or expenses/cash flows, so all of the corresponding screens in the new plan will be initially blank, but can be modified. The Expected Retirement screen will be filled with default values.
The old Goal plan also did not include the ability to construct a portfolio of actual securities, so the Allocate and Action Plan screens will be initially empty after an existing Goal plan is converted.