Watch a short introduction to Your Best Life
Your Best Life is Lumiant's new multi-goal optimization engine. The new module has been designed to help financial professionals showcase the value of their advice while allowing clients to answer their biggest burning question - “Am I on track.”
The introduction of Your Best Life takes the Lumiant platform to the next level by combining financial data and client values, goals, and tasks to scenario plan and model a household’s best life. Using stochastic modeling, clients can immediately see if they’re on track, underfunded, or overfunded in regards to living their best life, helping them make better, more informed life and financial decisions.
Fig 1. Your Best Life score helps clients see if they are on track to living their best life
“At Lumiant, we want to hero advice. We want to help financial professionals showcase the real impact of their advice on their clients' and families’ lives. Removing the dependency of market performance to showcase value and allowing financial professionals to reframe the value of advice through the trade-offs and choices we make throughout our entire lives.”
“Your Best Life does just that. It gives clients a framework, vocabulary, and place to help identify what drives them in life. A place to talk about things we’re often too busy for or ignore. And discover how to use their money in ways that align with their values and drive greater satisfaction in life. But most importantly, it answers the age-old question of ‘Am I OK?’ every day, no matter what life throws at them."
Santiago Burridge, CEO and co-founder of Lumiant.
A modeling tool designed for life
Working with industry experts and financial professionals, we have designed Your Best Life to better help clients navigate key turning points in their lives confidently, with the help of their financial professionals.
The module allows financial professionals and clients to map out their aspirations and goals on a timeline and see how they impact their financial outcomes. This empowers financial professionals to have meaningful trade-off conversations about what strategies can be applied to get clients on track.
“With the move from 'product to people', and from 'money to meaning' comes a new world of opportunity. The historical 'below the line' offer saw the industry produce 'single purpose' calculators, like those that tell us how much super do we need, how much risk cover do we need, or how do we pay my mortgage off quicker.
“With the new 'above the line' proposition, there is a different requirement, answering the question ‘Am I ok?’. Because life is not a vertical silo but a series of trade-offs. I was lucky enough to have a mentor who shone the laser on this opportunity back in 1995. Still, there was no systematic tool to implement this in a scalable, enterprise-driven, compliant way. Now it's here, with Lumiant’s Your Best Life module.”
David Haintz, author of Life First Advisor and Lumiant Ambassador.
Fig 2. Your Best Life projection chart lets clients quickly see the impact of their goals on their finances and if they’ll be OK throughout their lives.
Not your normal calculator
To date, financial professionals have had two forms of calculator to help clients model their financial situation. Ones that are overly simplified and used to determine the outcome of key events or ones that are too detailed and not client-friendly, requiring a lot of work and inputs to get right.
Your Best Life simplifies the complexity of life and financial decisions while giving financial professionals enough inputs and levers to have great conversations with their clients around life outcomes - not just market performance.
Fig 3. Your Best Life trade-off inputs and levers
Financial professionals can enter all the essential client inputs, such as income, debt, assets, retirement information, business information, and household cash flow. Once the data is in, allocation strategies can be set for excess cash (such as investing or paying down debt) and cover any shortfall in retirement (such as selling down property or assets). Strategies can be toggled on and off and be re-ordered, allowing financial professionals to show the impact of their advice instantly to clients.
Once the financial data and strategies have been inputted, the module layers on top the client’s goals, retrieves capital market assumptions, determines portfolio asset allocations, calculates expected tax rates, sets up social security assumptions, and runs more than 1,000 Monte Carlo simulations to ascertain if a client is on track.
Each time a projection is run, the results will change to highlight the volatility of markets and make it clear that it’s a model and not real life. Ensuring clients understand the value of having an advisor is to help keep them on track no matter what happens.
“For way too long, we've been advocating for a scenario modeling tool that will enable financial professionals to visually bring their advice to life. Your Best Life does just that. It helps clients easily visualize the outcomes of their decisions quickly and simply.”
“Firms don't need a rocket scientist or 3 hours to set up a scenario modeler before a meeting. With Your Best Life, they have a multi-goal scenario modeling tool that can be used in real-time, with a beautiful interface that enables trade-off discussions and meaningful strategy engagement.”
Sue Viskovic, managing director of Elixir Consulting and Lumiant non-executive board director.
What would it be worth to your clients to finally answer the question “Am I OK”? Every day? No matter what life throws at them? Watch our Webinar: Introducing Your Best Life to learn more.