Hello and thank you for joining our second protect Live dream webinar. My name is Kate and I'm a financial planning product manager at Orion. And today I'm excited to cover several things. First, I'd like to just revisit some of the underlying psychology and philosophy and interesting statistics that helped to shape. Protect the dream. And next I'd like to touch on where this project started. Where we are today and then I'd like to share some of our plans for future enhancements. Our goal of course, is to make this as useful and customizable for you and your clients as possible. And this is a project we're really excited about continuing to resource and expand. Next, I would like to answer some frequently asked questions that have come up since the inception of PLD. And then of course I will be sticking around to answer any other questions that you have via chat. And so I look forward to engaging with you there. Again, thanks so much for your time, really appreciate it. And let's press on as a quick review of mental accounting and the framing effect. I first want to refer back to our first protect Live Dream webinar. And that webinar featured doctor Daniel Crosby of course he's very well versed in in this in the research and and all of the relevant statistics and data here. So for someone who's got an additional 15 or 20 minutes I think going back and watching his presentation would be a great use of time. I will actually kind of recycle and reuse some of his examples that I think really bring life to protective dream and and its basis. So mental accounting is the propensity of of individuals to treat equally fungible dollars differently based on how they're being emotionally or mentally accounted for. And I say emotionally, I'll have an example to give, in fact, from my own career as a as an advisor in working with clients who received assets as a part of an inheritance from a family member or loved one who spent a lot of time and energy and effort in building. And monitoring our portfolio. This person passed on left assets to their heirs and now their heirs, you know, were faced with the decision of rebalancing or reallocating these assets in a way that made more sense potentially for their lives. You know, there's a new time horizon and a new risk tolerance and and and and potentially a new mix of assets that are more appropriate. What I observed and this is of course first hand experience I wonder if many of you can relate is that a lot of these folks were reticent to consider making any changes maybe because there is a selection bias a little bit happening there but also because of a perceived disloyalty or an emotional attachment to some of these some of the choices that they're that they're you know dearly departed had made and and and in fact I think that's perfectly reasonable and I'll I'll make a. Just a just a quick side note here. There's a fantastic book called The Psychology of Money written by Morgan Housel and he makes a distinction between financial decisions being reasonable. And rational and they're not necessarily the same thing. The example he gives in his own life is that in a historically low interest rate environment, he chose to accelerate payments on his mortgage and and and paid it off well in advance. And his friends and colleagues were kind of questioning his, his chops as a as a financial personality because, you know, you could, you could easily make the argument that that's not the wisest thing to do in such a low interest rate environment. But he made the argument that for him, based on, you know, the insights that he has about his emotional disposition, that it actually, though it wasn't rational for him, it was reasonable. And this is just one example I don't think that he's advocating. That everybody or anybody do this. But so when I think back to the clients who had some reticence and and reallocating or rebalancing, I completely understand. I chalk that up to being something that is reasonable, perfectly reasonable from an emotional perspective. Is it the most rational thing? Well, I you know that's a harder question to answer. Potentially no, but that's where a tool like PLD can be really, really powerful. So I want to give three other examples and the slide that you see in front of you now. The let's start with Norwegian criminals. So there was an evaluation done of how Norwegian criminals spent their earnings. Now these were individuals who had both illicit earnings and legitimate earnings. And with their illicit earnings they would just go ahead and, and, you know, further entrench and illicit activities. But with their legitimate earnings they would do. Something much different they would they would do things like take someone to lunch. They would buy someone a gift they might tie to a church or, you know, donate to charity. The idea there is that there's the perception that some money is clean and some money is dirty. And, you know, legal tracking and tracing aside individuals and their consumer behavior dictated that that these folks did not want to spend, you know, dirty money on on clean causes. That's a a good example of of mental accounting and the next rebates versus bonuses. If we think back to 2008, there were administrations on either side of that year who were tasked with stimulating the economy. And both did so and and put put a program in place in action to that. But when we look at the resulting consumer behavior those who received a rebate. Actually did not turn around and and spend it. A rebate was perceived more as being restored to an original financial position, whereas a bonus was perceived as kind of extra spendable disposable money. And folks would turn around and then go and spend that money and that did have more of the desired stimulative effect. And the final example is any 80% spending versus 20% saving. Umm. Folks were asked if they could. Survive or live on 80% spending 80% of their salary and most folks replied that they that they could do that. Whereas if the question were framed just a little bit differently, if it was flipped and folks were asked if they could save 20% of their salary, more folks said no. And of course you know both of those. Both of those questions are the same. The phrasing is a little bit different, but the saving is perceived as as a current loss. So just, you know, three quick examples to bring a little bit more color to mental accounting and the framing effect. Our CEO Eric Clark says that as an industry, we've done a really good job of solving the investment problem. So we can buy. Fractional shares, we can buy and sell low and no cost ETF and mutual funds. We have access to E SG portfolios and incredibly sophisticated alternative investment strategies. We can tilt a portfolio any which way. Our toolbox is wide and deep, but when we compare the investment problem with the investor problem or the investor behavior problem, we see that the latter is potentially less explored. This slide in front of you now, it comes from research from Merrill Lynch. And in this research, they were able to both compare items on the left with items on the right, but also assign a basis point value to all of these actions that advisors take on behalf of their clients. The upshot is that everything that advisors do for their clients is really valuable, and that's fantastic. But that also probably isn't novel and doesn't come as news to anybody here. What's interesting, though, is the disparity between some of the items on the left and the right. For example, the the most valuable item on the left, tax management, is actually less valuable than the least valuable item on the right. Client manager. Excuse me, client assessment, but what's interesting is that far and away the most valuable behavior that advisors engage in with their clients to add value is behavioral coaching. And this is really the basis for the value of protect live dream. It's not just a visual or it's not just a way to persuade people away from making potentially irrational decisions. It is, it's an it's an infrastructure that supports advisors and having the most powerful and impactful conversations that they'll ever have with their clients, and it allows advisors to promote great investor behavior. And the financial outcomes that are born of the continuous compounding of that great investor behavior. Now I just want to go back to the basics for a moment and remind everybody how to enable and disable protect their dream at the firm level, at the advisor level and also at the client level. So at the top right, I'm going to click on this. Accordion menu and hit settings. And you can see here that there's an asset bucketing tab. I will explore this in just a moment, but at the firm settings, if I'm if I'm a firm level permissions user, then I can disable this, toggle this asset bucketing protective dream. I can disable it and hit save. I'll just do a quick browser refresh and where there used to be an asset bucketing tab, there is no longer. So now I'll flip over to advisor settings and. Normally there would be another toggle here that would allow me to make PPLD available to all clients by default, but of course that's not there because we've disabled it at the firm level. So I will just show you if I re enable this. I had save here. Do a quick browser refresh. That asset bucketing tab has reappeared and now at the advisor level. I can choose to either enable or disable PPLD by default for all clients, so I would like it enabled. I'm going to hit save here, but in the case that there's an individual client. Who you think this is not well suited for? If at the client level, you can come here to client settings. And you'll see we have a a separate asset bucketing protective dream. Yes or no switch. O if I hit no and click save. Where PLD normally lives. Under the summary menu, you'll see it's not there. So I'll just come back and actually instead hit yes. And save that. And I'm going to come back to the goal results. And come under summer and you can see protective dreams there. And this is our protective dream landing page. This would represent everything that we had done for phase one. And this is again just a quick reminder of how to enable or disable it at all levels. And now let's move into what we've done for phase two, moving into phase two enhancements. Phase two was all about customization and I'll show you what I mean. So if I come up to the right click on the accordion menu and go to settings, I mentioned that I would revisit this asset bucketing tab. And when I do, it looks like a template and it is exactly that. So a couple things to point out, we can customize. The number of columns that exist or the number of buckets? The headline, the description of the headline? Of course, the names of the buckets and those descriptions, but also where these specific asset types live. So I'll give you an example. Let's just say that instead of protect live dream, I have a different way of conveying the same idea. And I call it protective dream give. Now I have a fourth bucket which I will name give. I'll give a short description. And I will drag a couple of assets into this new category. And if I like that, I can hit save, but I can also preview and see the see the changes that I that I would make. Yes, that I could see that the menu has been synced over and that I do have a fourth bucket. And indeed, these three assets are now in this 4th bucket. So I'm going to return to the settings. I can make any changes that I like, but for now I think this this works for me. And now let's see how this works for an individual client. Couple of things to point out here. In the client settings because I changed the headline, this menu will sync dynamically so instead of protective dream it will read protect live dream give which is what I want. And actually the same is true. Sorry to backtrack for just a second. The same is true of. The firm Settings Protective Dream give. And the advisor settings. And the reason that this is important is if one user or a few users are have firm level permissions and therefore are able to make changes to the asset bucketing naming convention, other advisors who access this content will not be confused about the name or what feature they're actually using because everything will be synced up and and the same is true of course on the client level. So when we apply these changes to an individual client, under the summary menu, I can see this menu is also synced. Protect, live, dream, give. And my changes, the headline has come over. I do have a fourth bucket with the description that I gave it and the assets that I designated to live in this bucket are now here. And those are the updates for phase two and I will move into phase three. For phase three updates we have added protect live dream into two different workflows. Now, for those of you who are already Orion planning users, this will look familiar to you. For those of you who are new to us, we have a menu of distinct workflows that we can send out to clients for onboarding or just to collect more information and in an ongoing relationship, so. Within our all workflows option, we have added protective dream there and I'll just preview the client portal quickly and show you. We can see that we've got a protective dream tile and this blue check mark indicate that this particular client has. Completed this workflow. But I will actually take you through the workflows that you have a sense of. The look and feel. So instead of all workflows in this case I'm just going to. Mockup protective dream workflow. And again, I could just plug in an e-mail here and send it out that way. Or I could generate a URL and and blast that out in some kind of campaign. I'm going to preview the client portal again. And take you through the steps of this workflow. So this is very similar to our retirement and or comprehensive workflows. But we collect relevant household information. And then of course the client can select. From our menu of goals that you're going to be working on in the planning engagement here, we can add accounts. And just keep in mind we can also from the accounts details we can customize the distribution strategy. We can. Determine asset allocation. We could add beneficiaries, of course, I could add these accounts manually. That's what I did here. But you could also link these accounts through our our partnership with Plaid. We can also add other assets, so real estate business, pensions, miscellaneous and deferred compensation, I'll just linger here quickly. We just added this deferred compensation input area. So of course this is a compliment to our already existing you know 401K's, 403B401A account types and this is, this is probably better suited for non qualified deferred compensation but that is. Recent enhancement. Equity compensation. Insurance and a quick point of order here that the cash value of a permanent life insurance policy would be included in the protective dream results page. We've got disability, long term care and other health insurance policies, income including employment, business, real estate, Social Security and other. And then of course expenses which we can enter in a detailed way or we can just aggregate and when I click next that will take us to the protective dream results and those are the phase three enhancements looking ahead to some phase four protective dream enhancements. There are three main things on the near term horizon. The first one is the relative size of these buckets. At a cursory glance, these buckets are all the same size. And so it's not clear which buckets are bigger and and how more assets. And So what we are working on is just making sure that they scale appropriately, that there's a meaningful visual difference from bucket to bucket if there's a meaningful difference in in the value contained within that bucket. The second enhancement is our what if experience. So I will toggle to our retirement goal to show you that. Here we've got a what if menu. And within the retirement goal, in fact within any of our goals, we can test the different hypothetical scenarios. So you know for example, what if we retire at age 60 instead of 65 or what if we change our life expectancies. This is a huge part of financial planning as as you well know, we are going to be releasing what ifs in waves and the first wave of what ifs for protective dream will be the sale of different assets. So for example. What if I sell my business? What if I sell my real estate? What if I sell miscellaneous assets #1? How will that affect my protect live dream layout in terms of the size of the buckets and the relative value within those buckets? But of course you know, how will that affect the, you know, the cash flow and the balance sheet reports? And also what if I decide what, what if in my base plan I, I had modeled that I wanted to sell real estate or business, but if in the proposed plan I don't want to sell them at all, what would my plan look like then? So we are making those enhancements now. And so again those will come out in waves and the way that our team works we we just sort of release as things are already and so we will, we will keep everybody apprised via you know product release. Updates and and maybe even targeted webinars just like this. So that is another enhancement that we are really excited about that we think folks will get a lot of value from and finally in in the spirit of even more customization. We're working on developing the ability for clients to. To customize the placement of their individual accounts across your naming convention, so. Right now, if a client has multiple traditional IRAS, for example, all of those IRA's are going to be contained within the live bucket or even if you've dragged, you know, a Traditional IRA into a different bucket, all accounts that are traditional IRAS will be in that bucket. So there's kind of a one to one mapping that we enforce, but in the future for clients who have, you know, multiple instances of the same account type, it's likely that they may see those. Counts as being you know different from a behavioral perspective. And so we want to allow this simultaneously accounts existing across buckets and we we we believe that that will really help clients connect to this idea that that that will make you know this this investor behavior problem a lot easier to solve. So those are phase four enhancements upcoming that we're really excited about and as I said we will be sure to share those updates as they become available. Thank you for sticking with me thus far. And before we wrap up here and I entered the chat to answer all your great questions, I just want to raise a couple of questions that folks have asked since PLD's inception. The first question is can you adjust at the account level which accounts will reside in specific buckets? And the answer as we stand and breathe today is no. But the the caveat is that this is an enhancement that our team is currently working on and we understand how valuable this is and we will deliver this very soon. In fact, we really understand how important it is because this bears the signature of mental accounting that we know clients are currently engaging in viewing accounts of equal fungibility, potentially equal tax status, registration and titling as being totally different from each other from an emotional perspective, and perhaps are organizing their thoughts from a behavioral perspective totally differently. So this is this is important, it's a high priority, and it will be coming soon. The second question? Is how does this, meaning PPLD, help clients with their goals and financial plans? When the markets are experiencing volatility? This is a great, great question. Market uncertainty and volatility can make everybody a little bit more vulnerable to engaging in bad investor behavior and. So PLD really is meant to be a place to which advisors and their clients can return and reengage in those really meaningful behavioral coaching conversations to reorient and calm the nerves and and to kind of refocus and this is this kind of realigning conversation and this coaching and promoting of great investor behavior is really what enables the compounding effect of of all those great decisions or potentially. Just stalwartness over time to bear fruit. And so this is how PLD helps clients achieve their financial goals and and and stick with their financial plans overtime because great investor behavior is way more than half the battle. And finally, what else is Orion doing on the B5? The Behavioral finance front? And the answer is quite a lot and I'm really excited about all the great work that we are doing. Doctor Daniel Crosby has been kept very busy these days, a fact to which I'm sure he would attest and. PLD is a great example. As I mentioned, this is a project that is coming in multiple phases. And so as we release new enhancements, we will be sure to make you aware with targeted webinars like this, but also product release notes. We also are working on our 3D risk Tolerance Questionnaire. This is another behavioral finance element and there are a couple of other projects that we are working on that we are really excited about that. I will. That I will be very happy to announce very soon and. As for today, that does it for me. I will see you in the chats. I want to thank everybody for your time and engagement and interest in protective dream. And as always, we look forward to hearing your feedback. You can reach us at financial planning at orion.com and until next time, stay well. _1732288226938