Osaic, one of the largest independent broker/dealer networks, has rolled out enhanced versions of its NextPhase Pro and NextPhase Plus retirement income planning tools, with help from IncomeConductor.
The NextPhase platform calculates easy-to-read, personalized retirement income plans that are based on simple inputs gathered from end clients by their advisors.
Often referred to as decumulation or distribution-phase planning, determining the best process for each individual or couple to spend down assets in retirement is a complex problem that takes many factors into account.
Advisors must perform cash flow analysis, help clients decide when and in what order to claim Social Security, analyze health care costs, and decide whether they can afford to leave a legacy for their family, among many other considerations.
According to Osaic, approximately 600 advisors currently use NextPhase Original with their clients, and more than $4 billion in retirement assets are planned through the platform each year.
With the Plus version, advisors have access to more advanced features, including Social Security optimization and alerts on mitigating risks for their clients, in addition to the automatic retirement income plan calculations in the original platform.
The NextPhase Pro version provides a tax overlay, required minimum distribution projections, Roth conversion modeling and personalized healthcare cost projections in addition to the features found in NextPhase and NextPhase Plus. It can also calculate income-related monthly adjusted surcharges to Medicare premiums.
The software has been updated in partnership with the developers of IncomeConductor software, who spent approximately six months with the Osaic team building customizations to both the advisor-facing technology platform and the various reports generated for end clients.
The earliest versions of NextPhase Original were based on processes and technology IncomeConductor co-founder Phil Lubinski developed in the early 2000s, which used his time-segmented approach to distributing income in retirement.
“The IncomeConductor team spent countless hours training the Osaic Retirement Income Consulting team on the technology,” said Kristen Kimmell, executive vice president of business development at Osaic.
“We are very excited to partner with Osaic, a b/d that has a deep understanding of the time-segmented strategy, a commitment to the success of their advisors and a vision for capturing the lion’s share of the retirement income market,” wrote Sheryl O’Connor, CEO of WealthConductor LLC (the company behind IncomeConductor) in an email.
IncomeConductor won a WealthManagement.com Industry Award for best retirement income technology provider in 2023.