Envision Use

Model Creation

You may create as many models as you wish. Variations of models enable sensitivity analysis and comparative outcome evaluation.

Model Types

There 2 types of Envision models: Life Models and Goal Models.

• Life Models are overarching views of your financial future that incorporate income (e.g. wages), expenses (e.g. living expenses), investment income, re-allocations of capital across asset classes, and life events (e.g. retiring, buying a second home).
• Goal Models are less detailed (e.g. no expenses or life events), but they enable you to explore your future net worth given re-allocation along lines other than asset class (e.g. risk profile, geography, sector).

Life Models

Life Model Setup

For a Life Model, you define an End Date (i.e. a horizon) for the model. You also define whether the model will operate at the Level 1 of Asset Classes (e.g. Fixed Income, Private Equity) or Level 2 of Asset Classes (Fixed Income Treasuries, Fixed Income CDs, Private Equity Funds, Private Equity Private Placements).

Life Model Assumptions

• Cash on Hand: Define a default range of the amount of cash that you are comfortable having on hand.
• Cash Harvest: Define which asset classes (and in what weightings) will be sold to close cash shortages given allocation and spending requirements.
• Cash Invest: Define which asset classes (and in what weightings) will be bought with excess cash given allocation and spending requirements.
• Effective Annual Rate: Define a default Effective Annual Rate across all asset classes and for each asset class.
  
  Example

  Asset Class	Annual Rate of Return
  Cash	0%
  Public Equities	7%
  Bonds	4%
  Real Estate	9%
  Crypto	10%
  Private Funds	14%

Life Model Incoming/Outgoing

• Cash on Hand: Define incoming operational funds (e.g. wages, pensions) and outgoing operational funds (e.g. living expenses, charity).

Life Model Events

• Event Types: Define events as either one-time or ongoing (starting as of a certain date and repeating for each period in the model thereafter).
• Periods: For each event you will set a target date. The impact of any event occurs as of the next period in the model.
• Impact: Events can affect any of the variables in the model (e.g. a change in wages, allocations) or can stand-alone. (e.g. buying a second home, giving to a charitable trust).
  
  Example

  Asset Class	Allocation (e.g. re-balancing)
  Cash	5%
  Public Equities	35%
  Bonds	25%
  Real Estate	12%
  Crypto	8%
  Private Funds	15%
  Total	100%

Goal Models

Goal Model Goals

Envision enables you create a model that targets a specific $ goal and/or a goal date. You may set your goal based on a:

• Specific Amount
• Number of Years from today
• Specific Date

Scope

The scope of the goal may be the entire portfolio, a specific account group, or a specific asset group.

Annual Growth Rate

You may define an annual growth rate (i.e. return %) for each element with a group.

Allocation

You may choose to re-allocate funds within the grouping at the starting period of the model.