Catering for the full spectrum of advice requirements

 

AdviceOS offers a range of fully integrated, highly sophisticated advice modelling modules, simplifying the advice generation process whilst enabling advice businesses to provide their clients with quality advice, quickly and cost effectively.  The modelling capabilities of AdviceOS cover the full spectrum of advice generation and are linked to Configurable Approved Product (APL) functionality. This includes limited advice or simple advice (scaled advice) all the way through to more complex strategies including gearing and SMSFs.

Advice modules

Midwinter’s Super to Super module guides financial advisers in providing a potential reasonable basis to switch superannuation products.

Drawing from Midwinter’s extensive database of superannuation fees and features (over 600 super platforms currently available) – Super to Super allows financial advisers to thoroughly investigate the existing and alternative products and determine whether there would be a reasonable basis to rollover.

It provides the most true-to-life picture of the client’s existing and alternative positions possible by incorporating all known factors and variables. Super to Super allows advisers to highlight the impact of implementing strategy during the accumulation phase.

The financial impact of strategy recommendations are calculated separately to the product recommendation impact. This enables the adviser to incorporate strategy advice within Super to Super over and above any product recommendations, and also ensures that advice disclosure is kept clear and concise.

Midwinter’s Super to Super automatically generates the following:

  • Product replacement statements for both the existing and alternative products,
  • Automatic linking of client objectives with features,
  • Automatically determines the “consequences” of switching, i.e. what features are gained or lost by undertaking the switch,
  • Implementation of rollover summary,
  • Summary of existing and alternative strategies,
  • Investigations matrix including investigations on the impact of rolling all funds into any of the existing funds,
  • Superannuation balance and annual fee projections,
  • Fee and strategy projection summary (including present and future values),

What if there are multiple from funds?

Super to Super takes a Total Portfolio Perspective (TPP) towards super switching advice, and can analyse the effect of rolling over up to six (6) existing or ‘from funds’ at a time.

The Midwinter Fee Index (MFI)

Super to Super examines the concept of overall cost savings on your client’s existing total overall portfolio. This can be represented by the Midwinter Fee Index – a single effective index which simply shows the average annual average fee paid by the client over the life of the superannuation product (or conglomerate of platforms).

By calculating an average annual cost across all platforms, the Midwinter Fee Index makes it easy to digest complex fee structures

Midwinter’s Super to Pension module guides financial advisers in justifying providing a potential reasonable when transferring a client from superannuation (accumulation phase) to an account based pension (drawdown phase).

Drawing from Midwinter’s extensive database of superannuation and pension fees and features (over 600 super and 150 pension platforms currently available) – Super to Pension allows financial advisers to thoroughly investigate the existing superannuation and potential pension products, and determine whether there would be a reasonable basis to transfer.

It provides the most true-to-life picture of the client’s superannuation and potential pension positions possible by incorporating all known factors and variables.

  • Super to Pension allows advisers to highlight the impact of implementing strategy in the pension including:
  • Drawing a dollar amount from of an account based (can be indexed),
  • Drawing a fixed percentage from an account based pension,
  • Drawing a certain amount from an account based pension to ensure it finishes at a certain age,
  • Drawing the minimum amount possible from an account based pension.

Leveraging off Midwinter’s database of super and pension products, Super to Pension quickly produces:

  • All exit fees incurred in superannuation phase,
  • Detailed projections of all fees incurred in pension phase (including entry, withdrawal, administration, review, trustee and miscellaneous fees. Portfolio rebates and buy/sell spreads are also calculated),
  • Product replacement statements,
  • Account based pension specific asset allocations vs. Client risk profile (with model portfolio functionality),
  • Tax free components with dual pension functionality – ideal for estate planning purposes,
  • Linking of client objectives with rollover relevant features,
  • Automatic comparison of relevant features,
  • Dynamic Words,
  • Practice Management value proposition,
  • Dealer specific templates,
  • Easy to generate custom tables for the detailed orientated financial adviser,
  • Statement of advice generation functionality – includes commission & fee for service reporting.

The Midwinter Fee Index (MFI)

Super to Pension examines the concept of overall cost savings on your client’s total overall portfolio.

This can be represented by the Midwinter Fee Index – a single effective index which simply shows the average annual average fee paid by the client over the life of the account based pension.

By calculating an average annual cost across all platforms, the Midwinter Fee Index makes it easy to digest complex fee structures, making decisions for the adviser and client very simple.

Midwinter’s Pension to Pension module guides financial advisers in justifying providing a potential reasonable when switching a client from an existing to an alternative account based pension.

Drawing from Midwinter’s extensive database of pension fees and features (over 150 pension platforms currently available) – Pension to Pension allows financial advisers to thoroughly investigate the existing and alternative account based pensions products and determine whether there would be a reasonable basis to switch.

It provides the most true-to-life picture of your client’s existing and alternative account based pension positions possible by incorporating all known factors and variables.

Pension to Pension allows advisers to highlight the impact of implementing strategy in the existing and alternative pension including:

  • Drawing a dollar amount from of an account based (can be indexed),
  • Drawing a fixed percentage from an account based pension,
  • Drawing a certain amount from an account based pension to ensure it finishes at a certain age,
  • Drawing the minimum amount possible from an account based pension.
  • Leveraging off Midwinter’s database of pension products, Pension to Pension quickly produces:
  • All entry and exit fees incurred in the switch,

Detailed projections of all fees incurred in the existing and alternative pensions (including entry, withdrawal, MER, administration, review, trustee and miscellaneous fees. Portfolio rebates and buy/sell spreads are also calculated),

  • Product replacement statements,
  • Account based pension specific asset allocations vs. Client risk profile (with model portfolio functionality),
  • Tax free components with dual pension functionality – ideal for estate planning purposes,
  • Linking of client objectives with rollover relevant features,
  • Automatic comparison of relevant features,
  • Automatic determines the “consequences” of switching, i.e. what features are gained or lost by undertaking the switch,
  • Dynamic Words,
  • Practice Management value proposition,
  • Midwinter Decision Matrix – an easy to understand “conclusion” for your switch analysis,
  • Dealer specific templates,
  • Easy to generate custom tables for the detailed orientated financial adviser,
  • Statement of advice generation functionality – includes commission & fee for service reporting.

The Midwinter Fee Index

Pension to Pension examines the concept of overall cost savings on your client’s total overall portfolio.

This can be represented by the Midwinter Fee Index – a single effective index which simply shows the average annual average fee paid by the client over the life of the account based pension. By calculating an average annual cost across all platforms, the Midwinter Fee Index makes it easy to digest complex fee structures, making decisions for the adviser and client very simple.

Midwinter’s Investment to Investment module will guide financial advisers in justifying providing a potential reasonable when switching a client from an existing to an alternative investment.

It provides the most true-to-life picture of the client’s existing and alternative positions possible by incorporating all known factors and variables.

As with all of our product advice modules, Midwinter’s research team has added a database of managed investments that shows the fees, asset allocations and other information that will allow advisers to compare their client’s current investments against an alternative arrangement.

This module has the dual purpose of determining fees within different investment portfolios and projecting the balances under different strategies. The user has the ability to adjust and compare the following aspects of investment planning:

  • Capital gains tax (current and future liabilities),
  • Fees from managed and direct investments,
  • Asset allocations,
  • Frequency of income distributions and whether to re-invest,
  • Expected returns,
  • Savings plans,
  • Product replacement.

Up to 6 investments can be entered and modelled at once. Advisers can then easily determiner impact on their client’s investments by altering their product and/or strategy.

The information can then be used to populate a statement of Advice document including the product replacement section.

The Investment to Investment module is the latest addition to the product advice section of Midwinter’s AdviceOS – giving advisers access to the full range of fees, premiums and features for superannuation, pensions, insurance and investments.

What is Midwinter’s Total Product Replacement?

Midwinter’s Total Product Replacement is a comprehensive product replacement module enabling financial advisers and authorised representatives to achieve the following:

  • Complete superannuation, pension and investment product replacement analysis and recommendations on the same screen.
  • Easy access to thousands of superannuation, pension and investment platform fee and features information all within the same advice module.
  • Full product replacement and fee disclosure tables for all types of products – including tax structures, trusts, companies and SMSFs.
  • Multiple recommendations within in the one analysis – Total Product Replacement enables advisers to provide clients with multiple alternative product recommendations. This will assist advisers in satisfying their best interest responsibilities.
  • Multiple related clients within the one analysis – Platforms can be owned by client 1 or 2 separately, through joint ownership, trusts or self managed super funds.
  • Portfolio reviews – Total Product Replacement conducts comprehensive reviews for rebalancing client’s portfolio allocations on an unlimited number of platforms

Complex situations made easy – Total Product Replacement’s new user interface allows a huge variety of complex situations to be modelled easily. As with all of Midwinter’s modules there has been no compromise in ease of use, despite catering for complex advice situations. The module is designed to be easy for beginners to use while being comprehensive enough for experts.

Unlimited product replacement capability:

  • Unlimited ‘from’ funds,
  • Unlimited ‘to’ funds,
  • Unlimited access to super, investment and pension platforms.

Total Product Replacement is not meant to be a substitute for the Super to Super, Pension to Pension or Investment to Investment modules.

Users should employ Total Product Replacement’s total portfolio approach where there is a requirement for modelling joint clients, couples, super, pension and investment products together and multiple ‘to’ and ‘from’ platforms.

Midwinter’s AdviceOS Insurance module is a comprehensive insurance comparator, allowing advisers to undertake in-depth qualitative and quantitative analysis of:

  • Group insurance products (i.e. insurance within super),
  • Retail insurance products.

Midwinter’s Insurance module leverages off Rice Warner research – giving advisers access to one of Australia’s largest insurance premiums and features databases.

Premiums

Display all premiums based on a range of selection criteria, including:

  • Insurance type (Life, TPD, Trauma, Income Protection, Business expenses),
  • Cover amount,
  • Stepped or level premiums,
  • Buyback options,
  • Guaranteed future insurability.

Premiums can ranked from highest to lowest with easy to read colour codes and charts. Premiums are updated live over the internet in real-time, ensuring that you always have access to the latest premiums.

Features

  • View complete universe, approved list or smaller sub group for easy comparison,
  • Compare a range of selected features at a glance,
  • Find products based on features criteria that is important to your client

Definitions

An extensive database of insurance definitions for all products available at your fingertips. You can compare three definitions/products at once – This report can run over 100 pages with the in-depth wording and attention to detail required by risk writers today.

Reporting

Print out a consolidated comparison report that shows the premiums, features and definitions for the selected products. This report can be used as an appendix to a statement of advice or used as an insert.

Integrated with Needs Analysis

Midwinter’s Insurance module is fully integrated with Midwinter’s Needs Analysis – making the plan preparation process for insurance a simple click and follow through process from deterring the level of cover required to selecting the appropriate product.

What makes Midwinter’s Insurance module better than its competitors?

The ease of use and integration between the needs analysis and the insurance comparator makes Midwinter’s AdviceOS Insurance module perfect anyone who is serious about risk or for anyone trying to grow their risk book.

All of Midwinter’s skills as a financial advice software provider have been utilised to make the Insurance module as easy to use as possible – it will dramatically decrease the amount of time it takes to prepare and document your risk advice.

Contribution Optimiser is a superannuation contribution optimiser that enables financial advisers to determine the best mix of concessional and non-concessional contributions that will provide the highest possible net contribution to super.

Contribution Optimiser determines whether a concessional contribution (pre-income tax) or non concessional contribution (post income tax) will provide the greatest net contribution at a given assessable income level.

Contribution Optimiser also exploits the inverse relationship that exists between concessional contribution and the Government Co-Contribution and the Low Income Tax Offset (LITO) pre 1 July 2009, and the inverse relationship that will continue to exist between concessional contributions and LITO post 30 June 2009. This inverse relationship exists because pre 1 July 2009, the maximum level of Government Co-contribution is based on an employee’s total assessable income plus reportable fringe benefits. Concessional salary sacrifice contributions reduce total assessable income. This means, the greater the salary sacrifice the lower your total assessable income and the greater your maximum Co-contribution payment or LITO will be.

What are the benefits of using Contribution Optimiser?

Contribution Optimiser allows advisers to take full advantage of the available tax concessions and incentives available for low to middle income earning clients, especially self-employed clients, who tend to declare a lower level of assessable income because of available business deductions.

It enables financial advisers to determine the best mix of concessional and non-concessional contributions that will provide the highest possible net contribution to super.

Other features of Contribution Optimiser are that it:

  • Has the ability to optimise by either matching current net income level or by setting a desired net income level,
  • Indicates comparative tax and cash flow analysis of the existing and optimal position over the term to retirement,
  • Produces first year results and also projects the impact of the strategy to retirement,
  • Automatically generates an implementation guide for financial advisers – including schedule of required concessional and non-concessional contributions – in order to ensure that administrative requirements are met,
  • Highlights the impact of optimising net contributions to super as the marginal increase in retirement benefits for each dollar contributed.

What is Midwinter’s Transition to Retirement optimiser?

Midwinter’s Transition to Retirement module is the complete transition to retirement optimiser.

In a matter of seconds, Midwinter’s Transition to Retirement module will automatically determine the optimal level of pension income and additional superannuation contribution levels required to provide your clients with the maximum increase in total superannuation benefits.

Transition to Retirement compares your client’s current situation to implementing Midwinter’s transition to retirement strategy and in doing so, potentially provides a reasonable basis for recommending this strategy.

Transition to Retirement is extremely simple to use – it requires minimal input from financial advisers (effectively current super and income details) and instantly produces a limited SOA or SOA inserts. It allows the adviser to maintain the client’s current net income level, set a desired net income level, or set a level of salary sacrifice.

Transition to Retirement will also automatically generate the following:

  • Comprehensive tax and cash-flow analysis for the existing and alternative position,
  • Summary of outcomes including difference in net income, contribution levels, average tax paid (with and without contributions tax) and projected after-tax income,
  • Projected superannuation and pension levels highlighting the annual and accumulated increase in benefits through implementation of the TTR strategy.

Is Transition to Retirement easy for clients to understand?

We have put considerable effort into making the output from Transition to Retirement easy for clients to understand without compromising the underlying calculations. The software includes an implementation guide that steps an adviser through the process on how to implement the strategy they have entered.

Your clients will be able to make a decision on your recommendation, based on our easy to understand SOA documentation. The report provides answers to the following basic questions: How much am I giving up? (change in net income) What am I getting in return? (increase in final super balance).

Is Transition to Retirement product specific?

Yes, the Transition to Retirement module draws from Midwinter’s extensive database of superannuation and pension fees and features (over 600 super and 150 pension platforms currently available) – Transition to Retirement allows financial advisers to thoroughly investigate the effects of a complete range of fees on both the clients existing superannuation products and potential transition to retirement pension.

What is Midwinter’s Retirement Modelling module?

Midwinter’s Retirement Modelling module is a simple yet fully comprehensive retirement modelling tool for singles or couples.

Retirement Modelling maps out your client’s financial position in retirement. It is perfect for clients who may be retiring now or within the next 10 years.

  • Retirement Modelling has the flexibility and functionality to model the following:
  • Superannuation, investments outside superannuation, Account-based pensions, Veteran’s Affairs Pensions, Age Pensions and other Social Security benefits,
  • Full tax analysis both pre and post retirement incorporating all current and future tax changes (and including all offsets such as SATO, MATO and LITO),
  • Ability to make commutations or transfers between different investment structures at varying times before and during retirement,
  • Full cash-flow analysis with the ability to vary desired income levels at different ages,
  • Ability to direct surplus and deficit funds to different investment structures,
  • Allows for couples retiring at different times.

What does Retirement Modelling provide?

Retirement Modelling has been specifically designed to answer the following common questions of clients at or near retirement:

  • What level of Age Pension can I expect in retirement in a few years time?
  • My wife is retired, but I am still working – is she eligible for the Age pension?
  • Should I transfer all of my investments into the tax-free super environment from age 60 or maintain assets outside super?
  • We would like $60,000 p.a. in retirement to age 70, then $50,000 p.a. thereafter – can we afford this?
  • How much tax will we pay in retirement? Should my expenses be funded from super, investments outside super, or a combination of both?

What is Midwinter’s Cashflow & Capital module?

Cashflow & Capital is the most comprehensive financial strategy modelling tool available to advisers. Multiple scenarios can be created each with its own unique set of strategies applied. It allows advisers to see the impact of each strategy and also enables the adviser to provide advice based on cashflow, taxation and capital outcomes.

Strategies that can be modeled include the following:

  • Cash flow management
  • Debt reduction
  • Transition to retirement
  • Maximisation of Centrelink entitlements
  • Borrowing against capital to invest
  • Margin Lending – including instalment gearing and protected loans
  • Contributing to super
  • Commencing an account based pension
  • Model investment property with non-recourse loan in SMSF
  • Model both SMSF pooled assets and SMSF segrated assets
  • Annuity payments

What does Midwinter’s Cashflow & Capital provide?

The Cashflow & Capital module assist advisers in developing a basis for the strategies they are considering. It provides tabulated itemised projection outputs, on a year on year basis, for a detailed analysis as well as graphical displays of the data.

Other Features

  • Optimise strategy by matching current net income
  • Allocation of surplus and deficits for specified time frames with overflow functionality
  • Customise returns at individual investment level
  • Stagger income and expenses for different life stages
  • Model short and long term impact of capital expenses for any particular years
  • Produce comparative cash flow and tax analysis of the existing and proposed positions
  • Accurately model Centrelink accessibility for annuity income
  • Centrelink payments automatically calculated. This includes pre and post retirement entitlements
  • Full control on the deeming of assets on individual assets
  • Unrealised capital gains tax calculated annually
  • Realised capital gains applied to annual taxation
  • Produce SOA inserts or limited SOAs including current and proposed capital, tax and cash‐flow analysis
  • The recommended and/or existing scenarios can be automatically included in the SOA

Cashflow & Capitalis a low touch solution allowing advisers to:

  • Model different strategies instantly and compare their outcomes effectively. This allows the adviser to select the most appropriate strategy based on the client's goals and objectives
  • Determine the best mix of investment and gearing strategy options,
  • Model different strategies
  • Understand the tax impact of various investments and gearing strategy implemented
  • Optimise tax effective investments to enhance capital and/or cash flow
  • Information and settings from the fact find flow directly into modelling, eliminating double entry
  • Scenarios can be locked so that inputs cannot changed. This ensures data integrity for scenarios that are in use

If you are serious about adding value to your client’s through strategy – the required tool of the trade is Midwinter’s Cashflow & Capital module.

Midwinter’s Insurance Needs module is a comprehensive insurance needs analysis for financial advisers.

Insurance Needs allows advisers to easily calculate the level of insurance your client(s) require. It will calculate sum insured for life, TPD, trauma and income protection.

The module can perform single or joint calculations and print the results into a word document. It also provides the ability to enter in product details that can be printed in a ‘SoA Insert’.

The Insurance Needs module has the ability to access insurance data (premiums and features) based on the insurance products selected. This includes comparisons and charts outlining the benefits of each product.

What set Midwinter’s Insurance Needs apart?

Midwinter has worked closely with a number of Australia’s leading risk writers to develop a practical insurance needs analysis.

Unique features include:

  • Replacement of income calculations provide flexibility to index the replaced income and to adjust future levels of replaced income,
  • Education expense calculator allows advisers to select the annual cost for primary, secondary and tertiary levels of educations, just enter the children’s age – and the Insurance Needs module will do the rest,
  • Comprehensive expense calculator allows you to create budgets for your clients and use then that information to determine the level of cover required,
  • Support for singles and couples,
  • Select insurance products from Midwinter’s Insurance Comparator or enter in details manually,
  • From fact find to statement of advice in less than ten minutes – including product comparisons.

What is Midwinter’s Age Pension module?

Midwinter’s Age Pension module requires very little up skill, has very few inputs and can quickly determine a client’s Age Pension eligibility based on income and assets.

The Age Pension module allows the adviser to model:

  • Optimal age pension entitlements under the income test. As the level of income you draw down from your account based pension may reduce your pension entitlements, Midwinter’s Age Pension module will determine automatically the optimal level of draw down,
  • All income and asset test scenarios,
  • Single / Couple Homeowner / Non Homeowner,
  • Age pension, Disability support pension, Carer payment, DVA pension,
  • Complying pensions,
  • Automatically updates over the internet with the latest pension rates, income and asset test hurdles and deeming rates every time you run AdviceOS,
  • Full statement of advice documentation – creates your reports and output automatically in MS Word.

Why spend time on determine my client’s optimal Age Pension?

While financial markets might be all doom and gloom, now is the time for financial planners with pensioner clients to make contact and reassess their eligibility for the Age Pension and other Centrelink benefits.

Certainly a great way of providing some relatively good news in a time when pensioners should be spending more time and money on the grandkids and blue rinses and less on worrying about their fortnightly budget.

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