What is the difference between full and targeted deficit coverage?
Deficit coverage is a NaviPlan feature that automatically uses the clients’ assets to cover deficits at the end of the year. There are two types of deficit coverage mechanisms in NaviPlan Extended: targeted deficit coverage and full deficit coverage. Targeted deficit coverage: applies only to the pre-retirement period. By default, NaviPlan redeems assets to cover deficits caused by semi-regular and lump sum expenses. In the Expenses dialog boxes, users can turn targeted deficit coverage on or off for each particular expense. Full deficit coverage: applies to all expenses while the clients are retired or when targeted deficit coverage is turned off.
