The Ability section is one of the two components contributing to your clients’ Tolerisk score.
Here is some information about the Ability section -
- This section is dynamic and reflects the changing financial circumstances throughout one's life. When computing Tolerisk scores, we compute Willingness and Ability separately, taking the lower of the two at any time as the Tolerisk score.
- These inputs will be used to stream out a model of future account values, inflows, and outflows that will contribute to calculating the Ability Score. The Primary Client can be a single individual or a combination of a couple's cash flows (if they exhibit similar timing). If it is beneficial to separate out specific cash flows for the spouse, click the "Enable Spouse" checkbox. For any fields that you do not wish to separate out from the Primary, you may enter 0.
- Everything on the Ability page with a pencil icon beside it signifies that you can customize those numbers further.
- There are also a few worksheets on this page to help you track expenses, assets, in-flows, and retirement income.
- The only required fields are current age, retirement age, Monthly expenses, and Assets. Everything else is optional but highly recommended.
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When it comes to the Tolerisk EZ assessment, you will notice that the ability page is limited to the required fields from the Pro assessment. This is because Tolerisk EZ is primarily designed to be a prospecting tool to screen clients for your practice. It gives you the bigger picture and is less customizable.
The video below walks you through the information above -