Main Menu->My Goals
Set goals for your household, assess the feasibility of these goals, monitor progress, and evaluate the achievability of goals ahead of time.
Screenshot of My Goals
The financial goal-related methds of Vision Money are as follows:
- Life can have multiple goals.
- Each goal has a priority, to be achieved sequentially.
- Goals can be classified as personal spending or family responsibilities, forming the basis for calculating family coverage needs.
- Achieving goals: This can be divided into target and actual situations. During evaluation, it’s not necessary to complete all goals. In reality, the completion percentage of goals will be evaluated based on the actual asset situation.
After entering the annual return (1) and clicking calc. (2), VM will compute various data, including the status of goal achievement and future cash balances, based on this return.
Click on the Min. Return(IRR) (3) to calculate the minimum annual return needed to achieve all goals, and display the value in (1).
Display the calculation results (4). Cash Surplus indicates the ability to achieve all financial goals, while Cash Shortage means it’s not possible to achieve all financial goals.
Click on the Net Assets Chart (5) to display the future net asset balances for each period.
Click on the gear icon (6) , Please refer to goal options for details.
- Set the foundational parameters, such as the initial date, retirement date, end date, inflation rate, loan interest rate, etc.
- Set the budget items for goals. The budget start date is fixed as the initial date, and the budget end date is initially set to the retirement date but can be manually adjusted. The budget can be considered as the asset accumulation period (pre-retirement) and covers basic household living expenses.
- Set all goals
Feasibility of Goal Completion: Not all financial goals necessarily need to be achieved, and they are divided into two sections – Target and Current – for display.
Target Status (7): There are a total of 4 financial goals, following the order in (9), from the highest priority budget expenditure 1 to the lowest priority vacation home 4. Based on the initial asset balances, green indicates the completion of goals 1, 2, and 3 (100%), yellow indicates partial completion of goal 4 (42%).
Current (8): There are a total of 4 goals, following the order in (9), from the highest priority budget expenditure 1 to the lowest priority vacation home 4. Based on the current completion of financial goals, green indicates the completion of goals 1, 2, and 3 (100%), yellow indicates partial completion of goal 4 (16%)
The significance of this chart is that when the goals was established, it was anticipated to achieve three goals (1,2,3), with the forth goal – vacation home – expected to be 42% completed. However, based on the current asset balances, only 16% completion is feasible for the forth financial goal. This indicates a disparity between the current situation and the target. The next analysis focuses on the reasons for the current status, referred to as the achievement rate analysis.
The Cost%(10) involves discounting the cashflow of goals to their present value at the initial date. This is done to compute the cost ratio for each financial goal.
Calculation Year/Month (11) to set the current date for displaying goal achievement, the achievement rates and detailed analysis of assets for different months after the initial date. Use the left and right arrows to change the calculation Year/Month.
Net Asset Chart
Display the net asset value of target from the initial date to the expiry date.
Target V.S. Actual Asset Chart
Comparison chart of target net assets and actual net assets from the initial date to this month.
Asset Achievement Rate Analysis
Asset Achievement Rate Analysis: Compare the target assets with the actual asset balances at the calculated month and year. This comparison reflects whether the actual situation is better or worse than target.
Asset Achievement Rate (2): Current Net Assets divided by Target Net Assets. If it’s less than 100%, it will be displayed in red.
Current Net Assets (3): Net worth of assets at the current month and year.
Target Net Assets (4): Target net worth of assets at the calculated month and year.
Diff.(5): Current Net Assets minus Target Net Assets.
Analysis of Asset Achievement Rate Differences: If there is a difference between current net assets and target net assets, it can be attributed to three reasons: lower-than-expected income (need to earn more), higher-than-expected expenses (need to save more), or lower-than-expected actual investment return rate (poor investment performance).
Income (6): From the initial date to the calculation month and year, compare actual income with target income. If the achievement rate is below 100%, it will be displayed in red.
Spending (7): From the initial date to the calculated month and year, compare actual spending with target spending. If the achievement rate is above 100%, it will be displayed in red.
Transfers In(8): From the initial date to the calculated month and year, the net value of external transfers in or out of assets.
Accumulated Returns (9): Comparison of the actual cumulative return with the target cumulative return.
Need Coverage Analysis
Calculate the additional coverage needed based on goals and existing insurance policy conditions.
Family Responsibility (1): Financial goals classified as family responsibilities, discounted to the calculated month and year, with the total present value representing the coverage the insured individual should have at that time.
Current Coverage (2): The total coverage amount from current insurance policies. Please refer to the account -> policy.
Need Coverage (3): The difference between family responsibility and current coverage, indicating the additional coverage needed by the family.
Coverage%(4): The ratio of current coverage and need coverage to family responsibility.
Coverage% for Goals: Listed according to the priority of goals, green indicates 100% coverage, yellow indicates a coverage ratio below 100%, and red indicates a coverage ratio of 0% for goals.
Need Coverage (6): The present value of goals discounted to the calculated month and year.
