using goal bridge in morningstar office

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Using Goal Bridge inMorningstar Office

User Manual

Morningstar Goal Bridge January 2021© 2021 Morningstar. All Rights Reserved.

Copyright © 2021 Morningstar, Inc. All rights reserved.

The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Any statements that are nonfactual in nature constitute opinions only, are subject to change without notice, and may not be consistent across Morningstar. Past performance is no guarantee of future results.

Morningstar Goal Bridge September 2020 3© 2020 Morningstar. All Rights Reserved.

Contents

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Exploring the Benefits and Features of Morningstar Goal Bridge . . . . . . . . . . . . . . . . . . . . . . . 5

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Why should I use Goal Bridge?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5What are the features of Goal Bridge?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Entering Client Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11How do I edit the client’s profile?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11How do I add income sources? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13How do I interpret the Income Over Time chart? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16How do I enter accounts to fund the goal plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17How do I add contributions to new and existing accounts? . . . . . . . . . . . . . . . . . . . . . . . 20How do I interpret the Annual Contributions chart? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21How do I assess a client’s risk tolerance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Establishing Client Goals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25How do I fund the Client Goals? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26How do I interpret the Goals and Account Details chart? . . . . . . . . . . . . . . . . . . . . . . . . . 27How do I prepare a proposed plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28How do I use the Plan Comparison tab? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30How do I create a proposed plan? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33How do I interpret the Goals over Time tab? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Creating Investment Plans and Summary Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41How do I build an Investment Plan?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41How do I interpret the Investment Plan Summary? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44How do I generate the Plan Summary report? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Morningstar Goal Bridge January 2021 4© 2021 Morningstar. All Rights Reserved.

Using Morningstar Goal Bridge inMorningstar Office Web

OverviewWelcome to Morningstar Goal Bridge. Goal Bridge is a planning and investment proposal tool designed to combine goal-setting and investment planning into a single workflow.

This user manual describes how to complete the steps within Goal Bridge to drive meaningful and collaborative goal-based investment proposals for clients.

The following topics are covered:

g Exploring the Benefits and Features of Morningstar Goal Bridge (page 5)g Entering Client Information (page 11)g Establishing Client Goals (page 24)gCreating Investment Plans and Summary Reports (page 41)

Exploring the Benefits and Features of Morningstar Goal Bridge Overview


Exploring the Benefits and Features of Morningstar Goal Bridge

OverviewWhile each client of yours is unique, one quality they all share is the desire to achieve their financial goals.

This section describes the value Morningstar Goal Bridge brings to goal-setting conversations in order to create realistic and achievable goal plans and investment proposals.


g identifying the benefits of using Goal Bridge (page 5)g exploring features and navigation, and (page 6)g initiating a plan from Morningstar Office Web. (page 9)

Why should I use Goal Bridge?

Morningstar OfficeSM data and research help you provide the best investment advice to clients. Goal Bridge combines this valuable data and research with proven behavioral science, allowing you to hold collaborative and meaningful conversations with clients around setting financial goals.

Goal Bridge provides streamlined goal planning and investment planning, all in one workflow. By connecting robust portfolio and investment data to client objectives, Goal Bridge provides a recommended asset allocation for each goal. Once the asset allocation is established, the workflow proceeds immediately to investment planning and proposal generation, all while using proprietary data from Morningstar.

During goal-setting conversations, it can be challenging to uncover all of a client’s goals. Clients often share only what’s top of mind, without considering additional long-term or short-term goals. Goal Bridge helps guide these conversations by providing a master list of goals from which clients can choose. Each master goal is then customized to express the client’s own unique goal.

Already included in your Morningstar Office Web subscription, Goal Bridge is accessible for all existing and future clients and prospects, allowing you to create, manage, and store goal plans without leaving the platform.

These master goals help drive goal-setting conversations.

Exploring the Benefits and Features of Morningstar Goal Bridge What are the features of Goal Bridge?


What are the features of Goal Bridge?

Morningstar Goal Bridge is a web-based platform launched directly from Morningstar Office Web. Goal Bridge is launched from individual client and prospect records and opens in a separate browser tab.

Once launched, a personalized dashboard opens, containing all previously created plans and an option to create new plans for each client or prospect. From this page, you can manage an existing goal plan or create a new goal plan from scratch.

Select this option to launch Goal Bridge.

Click this button to create a new plan.

Select this menu to manage an existing plan.



Goal Bridge is comprised of three sections:

g InformationgGoals, andgSummary and Report.

Each section contains a series of steps. Once you complete a step, you have the option to move forward. A description of each section and step follows.

Information

The Information section captures important client data necessary to create a goal plan. This includes retirement age, life expectancy, income, risk tolerance, and more.

The steps included in the Information section are described in the table below:

Goals

The Goals section is where you and your client work collaboratively to select, fund, and propose alternative plans to reach goals.

This step … Is responsible for …

Profile Capturing the necessary client demographic information, including residence, age, and gender to inform the goal plan.

Incomes Recording a variety of different income sources, such as employer income, social security, and other sources. Income amounts are used in the wealth simulation to determine tax rates and funding for income-related goals, such as retirement.

Accounts Displaying the different accounts associated with the client record. You can also add additional accounts and add contribution amounts to existing accounts. Accounts are used to fund each goal.

Questionnaire Asking the client a series of risk aversion questions, powered by FinaMetrica.

Complete these four steps.

Complete these three steps.



Each step is described in the following table:

Summary and Report

The Summary and Report section provides a summary for each goal.

Here you have the option to create an investment plan at the individual goal level or generate a summary of all goals. Each option is described in the following table:

This step … Is responsible for …

Select Goals Collaborating with clients to select, define and prioritize goals. Enter a time horizon for each goal to inform risk capacity and a suitable asset allocation.

Fund Goals Selecting the account(s) to fund each goal. Goal Bridge groups accounts generally used for each goal type.. For example, a 401(k) account will be visually prioritized to fund a retirement goal, and 529 Plans for education. However, you have the option to change the account or account percentage for each goal.

Explore Plans Showing how funding forecasts for each goal (result of a Monte Carlo simulation) and you can make adjustments to create a proposed goal plan with improved goal funding outcomes.

Click here to create an Investment Plan



1. From the Menu, select Clients & Accounts. The Clients & Accounts page opens.

Note: To initiate a goal plan for a prospect, go to Menu > Prospects.

Sub Step Description

Investment Plan Investment plans are generated for each goal individually. The plan includes risk tolerance, target asset allocation, and target funding for the goal. You also find a side-by-side comparison of the initial goal vs. the proposed investment plan.

By selecting Create Investment Plan, you are redirected to the Build Plan page. Here you select a model portfolio or investment strategy you want to use to build the investment plan.

Goal Plan Summary The Goal Plan Summary includes all of the client’s selected goals.

Click here to start.



2. Hover the cursor over the client for whom you want to create a goal plan, then click Actions > Create/Edit Plan. Goal Bridge opens in a new tab.

3. In the Goal Plan field, enter a name for the goal, then click Create Plan. The plan opens to the Information section.

Select this option to launch Goal Bridge.

Type the name for the plan here.

Click this button.

Entering Client Information Overview


Entering Client Information

OverviewThe Information section captures important client data necessary to create a goal plan. This includes retirement age, life expectancy, income, risk tolerance, and more.

In this section, required client information is entered for the client. The following topics are covered:

g edit a client profile (page 11)g add income sources (page 13)g review the accounts over time chart (page 16)g enter accounts (page 17)g add contributions (page 20)g review the account contributions chart, and (page 21) g complete the risk questionnaire. (page 22)

How do I edit the client’s profile?

Begin by entering client data to set up Goal Bridge. Each data field affects the plan in its own unique way. Client information already entered into the Client Profile within Morningstar Office autopopulates in Goal Bridge. This profile information establishes important data for accounts, goals, and taxes.

The following table defines each field and describes how it powers the goal plan:

This variable … Is defined as … And affects the simulation in this way …

Gender The client’s gender. Gender is used to determine the average life expectancy of the client based on gender tables.

State of Residency The client’s primary state of residence.

State of Residency is used to determine tax implications at the state level in the goal bridge forecast.

Retirement Age The client’s retirement age. Retirement age is used to determine when retirement drawdown will begin. The full-time job income cannot have an end date beyond the income owner’s retirement age and the default withdrawal start date for the retirement goal.

Life Expectancy The life expectancy of the client. Life expectancy is used to determine the plan horizon. Income entries cannot have an end date beyond the income owner’s life expectancy and the default withdrawal end date for the retirement goal, which determines when the expenses based on retirement will end. The forecast will not go beyond the date when the client or partner reaches their life expectancy age.

Entering Client Information How do I edit the client’s profile?


To complete the Profile data, do the following:

1. If you are not already on the Profile page, from the header, select Information > Profile. The Profile page opens.

2. In the Client Profile box, enter data for the required fields, as denoted by a red asterisk. If necessary, do the same for the required fields in the Partner/Spouse Profile box.

3. On the bottom-right corner of the screen, click Continue to Incomes. The Income page opens.

Start with this step.

Enter all required fields.

Entering Client Information How do I add income sources?


How do I add income sources?

Next, enter the client’s different sources of current and future income. Each income source is used in the wealth simulation to determine provisional income and capital gains tax as well as future income funding for a retirement goal. Morningstar’s Wealth Forecasting Engine uses different tax rates at different times due to changes in the income level. Inflation is not automatically assumed, so be sure to include a growth rate where applicable.

Income sources are broken into four categories, as defined in the following table:

This category … Includes these income sources …

Earned Income g Self-employmentg Full-time jobg Part-time jobg Social Securityg Pension

Income on Physical Assets g Rental Incomeg Royalties

Income on Investments g Business Incomeg Annuityg Dividendsg Other Investments

Other Income g Child Supportg Alimonyg Trustg Inheritanceg Other



These inputs affect how the Goal Bridge simulation forecasts retirement income, contributions, goal funding, and estimates tax rates over time.

To add income sources, do the following:

1. On the Incomes page, click Add Income, then select an income source.

2. In the Income Source box, fill out all required fields.

Note: Required fields are noted by a red asterisk. Required fields differ depending on the income source selected.

3. Repeat steps 1-2 for each income type you want to include in the plan.

Select income sources from this menu.

Enter required fields for all income sources.



4. In the bottom-right corner of the screen, click Continue to Accounts. The Accounts page opens.

Click here to move to the next step.

Entering Client Information How do I interpret the Income Over Time chart?


How do I interpret the Income Over Time chart?

As each income source is added, the Income Over Time chart adjusts to display the income source from the current year until the end of each participant’s life expectancy. This chart shows the effects of the following sources:

gAll sources of incomeg Inflation rates associated with those income sourcesgRetirement start year, andg Life expectancy.

Hover the cursor over a bar to view data for a specific year.

Entering Client Information How do I enter accounts to fund the goal plan?


How do I enter accounts to fund the goal plan?

After establishing the client’s income, verify all the accounts owned by the client are included in Goal Bridge. Any existing accounts available within Morningstar Office autopopulate. To ensure the plan includes the most current account data, click the Sync Account Values button on the Accounts page.

To create a more holistic portfolio, add any additional accounts you may not be managing. Available account types are listed in the following table:

This category … Includes these account types …

Pre-tax Assets g Variable Annuityg 401(a)g 457(b)g KEOUGHg Profit Sharing Money Purchaseg SIMPLEg IRA SEPg SARSEPg Traditional IRAg 403(b)g 401(k)

Roth Assets g Roth 457(b)g Roth IRAg Roth 403(b)g Roth 401(k)

Post-tax Assets g Checking Accountg Savings Accountg Brokerage Accountg Post-Tax 401(a)g 529 Plang Post-Tax 403(b)g Post-Tax 401(k)g Taxable

Existing client accounts display here.

Click here to update account data.



To enter an account, do the following.

1. On the Accounts page, click Add Account, then select an option from the drop-down menu.

Click here to select an account type.



2. In the Account box, fill out all required fields.

Note: Required fields are noted by a red asterisk. Required fields differ depending on the account type selected.

3. Repeat steps 1-2 for all account types you want to include.

Complete all required fields.

Entering Client Information How do I add contributions to new and existing accounts?


How do I add contributions to new and existing accounts?

Once any accounts are added, add contribution amounts to all new and existing accounts as needed. Do the following:

1. For each account, click the caret to the left of its name to expand it. The account box opens.

2. In the Pre/Post-tax contribution field, enter the amount your client plans to contribute per year.

3. In the Start year field, enter the year the client plans to begin contributing.

4. In the End year field, enter year the client plans to stop contributing.

5. Once all contributions are entered, click Continue to Questionnaire. To learn more about the interactive chart on this page, see the next section.

Enter required fields for all new accounts.

Entering Client Information How do I interpret the Annual Contributions chart?


How do I interpret the Annual Contributions chart?

Similar to the Income Over Time chart, the Annual Contributions chart adjusts to display contribution amounts assigned to each account in real time. This interactive bar chart displays the cumulative contribution amounts year-over-year for the time period set for each account. Hover over any bar to reveal the projected amounts for each account contribution.

Hover the cursor over a bar to view contribution amounts.

Entering Client Information How do I assess a client’s risk tolerance?


How do I assess a client’s risk tolerance?

The final step within the Information section is to complete the FinaMetrica Profiler. The FinaMetrica risk assessment system is the gold standard for risk profiling based on rigorous research that has stood the test of time. Use of the FinaMetrica system also creates a solid defense and decision trail, should the suitability of a client’s portfolio ever be challenged.

The questionnaire includes 10 questions designed to be filled out with a client.

Once completed, FinaMetrica auto generates a risk tolerance score for the client behind the scenes. This score will be considered alongside the time horizon for each goal (see Establishing Client Goals on page 24) to produce a suggested investment profile and target asset allocation for each goal. Long-term goals will suggest an investment profile up to but never exceeding the client’s tolerance for risk based on the questionnaire, while short-term goals will cap the risk exposure at lower levels, even if the client is generally more risk tolerant, because short-term goals may not allow the client sufficient time to ride out a market downturn prior to drawdown. The selected profile and target asset allocation inform construction of a recommended portfolio for each goal (see Creating Investment Plans and Summary Reports on page 41).

Entering Client Information How do I assess a client’s risk tolerance?


The questionnaire loads after completing the Accounts information. The questionnaire should be completed by clients. They can make changes to their answers When clients are finished, select Continue to Goals, to set the answers.

Once the questionnaire is complete, move to the next section by clicking Continue to Goals.

Click here to access the questionnaire.

Click here to move to the next step.

Establishing Client Goals Overview


Establishing Client Goals

OverviewOnce your client’s information is added and their risk tolerance is evaluated, work together to set goals. These can include traditional long-term goals such as saving for retirement, as well as short-term goals such as saving for a family vacation.


g select client goals (page 24)g fund client goals (page 26)g interpret the goals and account details chart (page 27)gprepare a proposed plan (page 28)guse the plan comparison tab (page 30)g create a proposed plan (page 33), andg review the Goals Over Time tab. (page 39)

Goal setting includes a three-step process:

1. Select goals

2. Customize goals, and

3. Prioritize goals.

The first step is to select the goals important to clients from the master goals list. Other than Retirement, you can add multiple goal types. For example, if the client has more than one child, they can select a separate Education goal for each child.

To select a goal, drag-and-drop it from the List of possible goals area to the Prioritized goals area.

Drag-and-drop each goal here.

Establishing Client Goals


The second step is to customize each goal. Each goal contains the following fields:

gGoal Nameg Target Amountg Inflation Rate, andgWithdrawal Period. (including a lump sum option for non-retirement or

non-education goals).

Note: Fields may differ, depending on the type of goal you are customizing. For example, when creating an Education goal, you have the opportunity to select additional options to estimate the cost of in-state, out-of-state, public or private university tuition expenses.

The last step is to prioritize goals. To set the order of goals, click-and-drag each goal, placing the most important at the top and the least important at the bottom.

On the bottom-right corner of the screen, click Continue to Fund Goals.

Enter required fields for each goal.

Arrange the order of goals by priority here.

Establishing Client Goals How do I fund the Client Goals?


How do I fund the Client Goals?

Now that you’ve identified, customized, and prioritized goals, the next step is to fund each goal using the accounts entered into the Information section of the goal plan. Each goal is funded individually.

By default, Goal Bridge will group accounts generally used to fund the goal type. For example, a 401(k) account will be shown as a primary funding source for the retirement goal. However, you have the option to apply funds from any account to any goal.

Before assigning funding, review the Estimated Amount to Achieve this Goal for each individual goal. This amount roughly estimates a range of current funding required today to fully fund the goal.

To apply or adjust funding for each individual goal, do the following:

1. From the Goals > Fund Goals page, click the caret next to the first listed goal.

2. In the Assign Accounts area, see the account or accounts you might want to use to fund the goal. In the text field next to the selected account or accounts, enter a percentage of that account you would like to use to fund that goal.

3. Click the caret to close the goal.

4. Repeat steps 1-3 for each goal.

Review this information.

Enter a percentage here.

Establishing Client Goals How do I interpret the Goals and Account Details chart?


How do I interpret the Goals and Account Details chart?

Within the Goal and Account Details chart, the Goals tab provides a visual representation of how all of the clients goals are funded.

On the Accounts tab, review the remaining balances after assigning each goal.

Once you’ve assigned accounts to goals, click Continue to Explore Plans.

Click this tab to view how well each goal is funded.

View remaining funds on the Accounts tab.

Establishing Client Goals How do I prepare a proposed plan?


How do I prepare a proposed plan?

The Explore Plans page displays an estimated goal-funding percentage (i.e., projected amount of desired goal amount that would be attained) for each goal based on the goal’s assigned account(s), the underlying account allocation(s) and associated contributions, the time horizon to the goal and other applicable sources of income (in the case of a retirement goal). The projected goal-funding amount is derived from a Monte Carlo simulation using Morningstar capital market assumptions for broad asset classes over the time horizon to the goal, and accounts for account contributions and estimated taxes due. Each funding percentage is shown at the 50th Monte Carlo percentile. If it is unlikely that the plan will meet the goal, this page provides an opportunity to create an alternative plan by modifying the client’s account savings, time horizon, investment positioning, funding sources and desired goal amount.

The Explore Plans page is comprised of the following two tabs:

g The Plan Comparisons tab gives the advisor the opportunity to build a proposed plan to optimize a client’s savings and better meet their goals.

Click this tab to view a side-by-side comparison of the initial plan vs the proposed plan.

Establishing Client Goals How do I prepare a proposed plan?


gThe Goals Over Time tab provides a comparison of the client’s assets over time for the initial plan and the proposed plan.

Click this tab to view a visual representation of assets for the initial and proposed plans.

Establishing Client Goals How do I use the Plan Comparison tab?


How do I use the Plan Comparison tab?

Before you create a proposed plan for a client, you have the opportunity to evaluate the goal plan. By default, the projected amount and desired amount of funding for each goal are shown. To expand all goals and view additional details, click Show Details. Review each goal to determine how to adjust the initial plan to create a proposal plan to better fund each goal.

Click here to expand the details for each goal.

Each goal displays the projected and desired amounts of funding.



Once the initial plan has been evaluated, click Create Proposed Plan to create an alternative plan to review with the client.

The Proposed Plan area lists each client goal.

Click here to create a proposed plan.

Each goal is displayed here.



In this example, the Retirement goal is funded at just 60% of the desired amount. The next section shows how minor adjustments to the initial plan can increase the likelihood of achieving the goal.

The current funding falls short of the desired outcome.

Establishing Client Goals How do I create a proposed plan?


How do I create a proposed plan?

To begin, click the caret to the left of the any goal for which you want to create a proposed plan. Here you find the client information and goal data you entered for the goal. This information is broken down across the following tabs:

gDetailsgAsset AllocationgAccountsg Fund Goals, and g Income.

‘

Make adjustments to fields within each tab to increase the funding percentage of each individual goal. As you make changes to these inputs, the funding dial will update in real time. For example, delaying a goal’s start time will improve the funding percent.

The remainder of this section describes the ways various fields could be altered to help a client reach a Retirement goal.

Make adjustments to the plan using these tabs.



Within the Asset Allocation tab, the asset allocation for the goal was changed from the recommended conservative allocation (based on the answers to the FinaMetrica questionnaire and the goal time horizon) to a moderate allocation.

Click here to select an alternative allocation.



Within the Accounts tab, the contribution rate for a tax-deferred account was raised to 15%.

The pre-tax contribution amount was changed here.



On the Fund Goals tab, the funding percentage from the Savings account was increased.

Last, within the Details tab, The Retirement Age for both clients was increased.

This account’s percentage increased.

Retirement age was increased here.



Once complete, click Save.

Click here to save the plan.



Next, click the Select at the top of the Proposed Plan box to choose your proposed plan.

The next section explains what is displayed on the Goals Over Time tab.

Click this button to select the proposed plan.

Establishing Client Goals How do I interpret the Goals over Time tab?


How do I interpret the Goals over Time tab?

The Goals Over Time tab displays a visual comparison of the initial plan vs the proposed plan. From the Total Assets chart, toggle between the following views:

gAll YearsgAge Range, andgYear Range.

To view data for each individual goal constituting the plan, use the View menu directly above the Total Assets chart.

Use this menu to change the chart’s view.

Click this tab to view Goals tab.

Establishing Client Goals How do I interpret the Goals over Time tab?


Once you’ve completed the Explore Plans step, click Continue to Summary and Report.

Click here to proceed to the next step.

Creating Investment Plans and Summary Reports Overview


Creating Investment Plans and Summary Reports

OverviewSo far, you’ve combined important client information such as a retirement goal, risk tolerance, and current financial state, with short-term and long-term goal planning. Through this effort, you’ve created a goal plan to present to your clients.

In the Summary and Report section, conclude the plan by creating investment plans for individual goals and a summary report to include the entire goal plan. Share these documents with your clients at quarterly meetings to ensure the client remains on track.

How do I build an Investment Plan?

The Summary and Report page lists all the client’s goals. Each goal provides a summary of the agreed upon plan changes within the selected plan. To review details of each goal, click the caret to the left of its name.

Creating an investment plan allows you to apply a pre-built model portfolio aligning with the client’s target asset allocation. To automatically redirect to the Build Plan section of Goal Bridge, click Edit Investment Plan. Here, you complete the following steps:

1. Choose an Option

2. Select Investments, and

3. Allocate Portfolio.

Click here to review details of the goal plan.

Creating Investment Plans and Summary Reports How do I build an Investment Plan?


To create an investment plan, do the following:

1. From the Summary and Report page, select the goal for which you want to create an investment plan, then click Create or Edit Investment Plan. The Build Plan section opens.

2. On the Choose Option page, click Model Portfolios. The Select Investments page opens.

Click here to start.

Click this option.

Creating Investment Plans and Summary Reports How do I build an Investment Plan?


3. Within the model portfolio card, choose a model that closely aligns to the target asset allocation for the goal. Then click Select. The Select a Model page opens.

Note: The bar chart demonstrates the deviation of each model from the suggested or selected asset allocation for the chosen goal. So, the smaller the bars, the more closely the investment portfolio aligns with the target asset allocation.

4. Click the Continue to Allocate Portfolio button. The Portfolio Allocation and Deviation from Target % charts appear.

5. In the Portfolio Allocation box, from the drop-down menu, select either USD or Weight %.

6. For each investment, enter the dollar amount or allocation percentage.

7. Click the Continue to Summary and Report button. The Summary and Report section opens.

Click this button for the selected model.

Click here to select % or USD

Enter weights here. Or delete an investment.

Add investments here.

Creating Investment Plans and Summary Reports How do I interpret the Investment Plan Summary?


How do I interpret the Investment Plan Summary?

The final investment report shows the target allocation and target funding, along with an assessment of the current versus proposed portfolios in relation to the target allocation. A Target Portfolio Risk score is defined for the goal, and the current investments assigned to the goal receive a Risk Score (“Current Portfolio Risk”) as well as the proposed portfolio (“Proposed Portfolio Risk”), making it straightforward to demonstrate that the proposed portfolio is better aligned to the client’s needs for the goal.

Once you’ve reviewed the Investment Plan Summary, click Generate Report. The Investment Plan report generates in a separate browser tab.

Review each section.

Creating Investment Plans and Summary Reports How do I generate the Plan Summary report?


How do I generate the Plan Summary report?

The Goal Plan Summary outlines the details of each client goal. To generate this report, from the Summary and Report page, click Return to Dashboard.

Then, for the plan for which you want to create the Plan Summary, click View Goal Plan Summary.

Click here to view all goal plans for the client.

Click this button.



Click here to generate a goal plan.



From the Summary and Report page, click Generate Report. The Goal Plan Summary opens in a separate browser tab.

Each goal is outlined on its own page, and includes the following information:

Section Description

Outcome This shows how likely the plan is to help a client achieve a goal. It also outlines the Projected and Desired Amount.

Plan Changes Lists a comprehensive overview of the changes made to the proposal to optimize the client’s savings, accounts, time horizon and goals.

Target Asset Allocation By default, this shows the ideal asset mix of the risk profile determined by the risk tolerance questionnaire. Alternatively, this will show the asset mix of the risk profile selected by the advisor in the proposal stage.

Target Funding for this Goal $ Shows the current values of the accounts funding the goals. This chart does not factor in any future contributions.

Accounts and Income Outlines the details of all accounts and income used to fund the goal.

using goal bridge in morningstar office

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