Easily help clients answer the big question “Do I take the Lump Sum or the Annuity?”. Now you can give them a full report and build trust that their best interest is being considered!
So, you’ve received an email from a client who needs your help with LSVA 3.0? It’s easy to use – and FREE using a client’s Share Code.
Simply check out with this free product to be automatically entered as an LSVA Manager in the Lump Sum vs Annuity software. Download and login to view your client’s info.
Training for LSVA Manager is also available for free.
Use the LSVA 3.0 Software – LSVA Manager Free Advisor Version.
LSVA Manager was specifically designed to allow pension plan participants the ability to share their data with their financial advisor. When the client has purchased the software and provided you with their Share Code, there is no cost for you to download and install the software, then retrieve, review, modify, and save their data. Get more leads! (You are welcomed!) As an advisor, you will be more familiar with the Time Value Of Money concept, but if you need a refresher, we provide you with abundant resources!
Included in the software package:
- Software Training Videos in the My Training section
- Lifetime Software Updates
- Secure Cloud storage for easy account retrieval
- Installs easily and quickly!
- Instant Access to RetireCode Member Resources!
- Access to All Reports and Charts In LSVA Dashboard!
- Access to additional licenses to offer analysis to existing clients
Frequently Asked Questions:
Will Training Be Provided?
…plus Lifetime Access to our support team.
What's the Difference Between LSVA and LSVA Manager?
What Is a 'Hurdle Rate'?
The Hurdle Rate chart compares these options visually, so you can immediately see the interest rate you’d have to invest to beat the pension (with the current Life Expectancy ages).
Does The Software Account For Join Survivor (JS) Benefits?
Example: John and Mary are estimating their life expectancy to be 80 and 82, respectively. Mary is expected to live 2 years longer, so LSVA calculates those 2 years of extra pension benefits according to each specific plan!
Can It Calculate How Much I'll Be Able To Leave To My Heirs?
The Lump Sum Compare and Monthly Balance Charts show you detailed information about the Lump Sum compared to the current pension option and your Legacy with each plan.
Where Do I Find Out About Probability and Life Expectancy?
How Is This Different Than A Mortgage/ Amortization Calculator?
LSVA summarizes a complex series of calculations in an instant for your benefit, but it considers much more than a mortgage calculator, including
- Employee Life Expectancy
- Joint Annuitant Life Expectancy
- Multiple Pension Options, each having a unique set of payout rules
- Reverse Engineered Internal Rate of Return (IRR) for each Pension Option
- Creates Summarized Reports/Graphs for each Comparison
- Automated Proof Calculators to verify accuracy
- Analyzes Joint Survivor Benefits
- Computes Inheritance to Heirs for each option!
What other ways are there to compare my lump sum with my pension options?
With LSVA’s Dashboard, you can access the Present Value chart and instantly compare the exact amount you would need to invest to replicate each of your Pension Options. This is a great way to compare your benefits with each other and with the lump sum! The higher the Present Value (PV), the better.
The Present Value of the Lump Sum is always the Lump Sum amount. So, imagine electing the lump sum and investing it. Then, withdrawing the same monthly income benefit as you would receive if you had elected the Pension Option that you are comparing. When you run the analysis, you’ll see how this plays out. Unlike the Pension Option, the invested Lump Sum may be more than enough, and there will be money left over, but there is also a possibility that the money will run out. The Present Value chart allows you to view it in a way that makes it easy to understand. The Present Value of the Pension Option is the amount of money you would need to invest (earning your expected rate of return,) for you to receive the exact total income as the Pension Option. There would be no money left over at the end. The Present Value of the Pension Option could be greater than the Lump Sum if the Lump Sum runs out due to long life expectancies or if the Invested Rate of Return is lower than the Internal Rate of Return of the Pension Option. If your Life Expectancy Ages and your estimated Rate of Return estimate turn out to be accurate, the Pension Option with the largest Present Value will provide the greatest financial benefit.
At the end of the day, you want to evaluate your pension options using the most realistic Rate of Return that you believe you can earn if you were to invest your lump sum. You also want to use your most realistic life expectancy ages as well. But, to help you understand the consequences of how your options might play out under different circumstances, you should play with the Rate of Return percentage and change it as much as you want, and change the Life Expectancy age(s) too, for further research!
Does LSVA Support Level Income Calculations, aka LEVEL62/LEVEL65?
Yes! You can run Level Income scenarios with LSVA. Not all pensions offer these unique benefits, but if your plan does, we already have them built-in!
Why is the Withdrawal Rate different from the Internal Rate of Return for my pension options?
Example: Bob’s Lump Sum is $100,000. He gets $500/mo x 12 months = $6,000/yr
6,000 / 100,000 = 6% Withdrawal Rate. This is the percent of the lump sum that is paid by the Single Life Annuity income each year.
(Hypothetical example- Bob retires at age 60) If Bob were to die younger than expected and receive payments for only 16 years, the Internal Rate of Return (IRR) of the pension benefit would be less than 0%! That is because the total of all of his payments would be $98,000, less than the $100,000 he could have received as a lump sum. Likewise, if he were to live to age 100, he would receive a total of 480 payments and receive $240,000 over his lifetime. Even then, the Internal Rate of Return would only be 5.26%. It is very important to understand that these two percentages are calculated differently are not to be compared or confused.
How Long Can I Get Support?
How Do I Contact RetireCode Support?
What you’ll need:
- A Windows Computer
- Microsoft Excel
If you have any questions, please contact us at firstname.lastname@example.org