Explore the assumptions underlying the Conquest, including Plan assumptions, Cash Flow assumptions, and Tax assumptions.
How to Navigate to Assumptions?
Step 1
Click on the 'Client Data' Drop-down option from the Dashboard
Step 2
Click on the 'Current data- Client' side arrow to access the 3 assumptions 
Step 3
You are now able to access and make changes to all 3 assumptions in Conquest
Plan Assumptions
Plan assumptions are the foundational inputs that drive the entire financial model within the Conquest software. These assumptions help define the strategic parameters and provide the basis for projecting future financial outcomes.
Key Plan Assumptions include:
- Retirement Age and Withdrawal Strategy: The age at which the individual or client plans to retire(assumed to be 65) as well as the planned strategy for withdrawing funds (e.g., how much will be taken annually from retirement accounts). The retirement age can be changed to a specific date if the client doesn't plan on retiring at 65.
- Life Expectancy: Assumptions about how long the client's life Expectancy is. For example, a planner might assume the client's life expectancy to be 90 by default.
- Index Rates: in this case, the planner links the client's financial profile with the expected inflation rate. It shows how the personal or business plan will evolve with time. This could include inflation rates, expected increases in living costs, or any specific future expenditures like education or healthcare costs.
- Budget for the current year: The client has an option to apply the Budget changes to their financial goals.
- Default account fees: This section defines the account fee and the frequency of those fees. In this case, it is set up to 1.35% on a monthly basis.
- Residence Change: The assumption regarding changes in the client's residence is set to "No Residence Change."
Purpose: The plan assumptions give context and direction to the financial model, helping the planner assess how variables such as growth rates, expense trends and index rates will impact the client’s long-term goals and financial sustainability.
Cash Flow Assumptions
Cash Flow Assumptions section plays a crucial role in projecting a client’s future financial situation. Key features within this section, such as surpluses, tax refunds, deficit coverage, and retirement withdrawal plans, help planners analyze how the client’s cash flow will evolve over time.
Key Cash Flow Assumptions include:
- Surpluses: It occurs when income exceeds expenses, creating extra cash. In Conquest, this surplus can be allocated to savings, investments, or debt repayment, helping build wealth or reduce liabilities. Clients have an option to Save, spend or invest the Surplus in Non-Reg Account or TFSA. Clients also have an option to allocate a % of their surplus towards Investments and the remaining as spending money.
- Tax Refund: Just like Surpluses, Tax refunds for clients are available for Savings or can be redirected straight to TFSA as per the contribution limit. Conquest estimates potential refunds and their impact on cash flow, which can be used for savings, debt reduction, or investments.
- Deficit Coverage: It addresses scenarios where expenses exceed income. Conquest models how the shortfall is covered, either by borrowing, using savings, or adjusting expenses, ensuring financial stability.
- Retirement Withdrawal Plan: The retirement withdrawal plan outlines how and when funds are accessed from retirement accounts. Conquest helps model sustainable withdrawal amounts, optimizing tax efficiency and ensuring the longevity of retirement savings.
Purpose: This feature in Conquest help financial planners accurately project and manage a client’s cash flow, ensuring they can meet both short-term needs and long-term financial goals.
Tax Assumptions
The "Pay Estimated Income Tax Installments" feature under Tax Assumptions refers to modeling the client's obligation to make periodic tax payments throughout the year, rather than paying the full tax amount at once.
Key Tax Assumptions include:
- Estimated Tax Payments: The software allows planners to input and track periodic tax instalments (quarterly or otherwise) that the client is required to make based on their expected income for the year.
- Income Projections: The tax installments are typically calculated based on projected income, deductions, and credits, ensuring that the client makes the appropriate payments to avoid penalties.
- Cash Flow Impact: These installments are factored into the client's cash flow assumptions, affecting liquidity and budgeting for the year. Conquest helps model how these payments impact the overall financial plan.
Purpose: This feature helps planners ensure that clients stay compliant with tax obligations, while also maintaining accurate cash flow projections and avoiding surprises at tax time.
