By any measure, EISI is one of the largest and most influential developers of financial planning software in North America. Approximately 250,000 financial professionals currently license software from the company. From simple needs-assessment tools to the comprehensive and detail-oriented NaviPlan Extended software package, EISI's financial planning products cover the gamut of advisors' needs.

Since the initial release of NaviPlan Standard and NaviPlan Extended in the U.S. over a decade ago, EISI has been regarded as an innovator in the field of financial planning software. The company was one of the first to apply artificial intelligence to personal financial planning software, was among the first to offer planning software with online/offline capabilities and was among the first to incorporate meaningful retirement distribution planning functionality into its software.

But in spite of EISI's strong reputation as an innovator, the recent advances in the NaviPlan product line have been uneven. NaviPlan Standard received a significant overhaul a few years ago, but NaviPlan Extended has stagnated a bit. Moreover, the rationale for supporting two different versions at the same time is weaker than it once was.

The distinction made sense when NaviPlan first launched, but much has changed since then. The two versions have been on convergent paths for a number of years, with Standard adding more features while Extended has required streamlining. So the company has taken that trend to its logical conclusion, merging capabilities from both the Standard and Extended applications into NaviPlan Select, to create a consolidated Web application.

Introducing NaviPlan Select
Although the consolidation of these two products might not seem earth-shattering, advisors who have used both will immediately appreciate it. No longer do you need to learn two applications. No longer will you begin a case in NaviPlan Standard, only to realize that you later require the functionality of Extended. Select is more flexible: You can, with few exceptions, pick and choose the level of detail and the analysis you need.

I recently had the opportunity to preview a beta version of the new software, which should be available by the time you read this, barring any delays. Since beta software is always a work in progress, some of the annoyances I encountered in NaviPlan Select may be resolved before final release. So my intention is not to fully evaluate it yet but simply to familiarize readers with it.

When you first log in to the program, you are transported to the client list. The main list includes client names, ID numbers and the dates of last modification. Buttons along the top of the list allow you to open a file for an existing client. You can also grant another user the right to read, write or control the client file, or revoke any permission you've previously granted. The buttons also allow you to reassign a client to a different user log-on, or to delete a client. An additional button, labeled "data scrub," allows you to export data from the client file and share it with a third party without revealing personally identifiable data. So information such as cash flow, net worth, financial goals and strategies can be shared without revealing client particulars. This enhancement is ideal for advisors who want to outsource some or all of the financial planning functions to a third party while protecting a client's privacy.

A search button to the right of the client list allows advisors to search by last name or client ID. Boxes and radio buttons let you confine the search to a subset of the full data set. Above the existing client list are buttons to create a new client and to access a blank fact finder. For those who license Ibbotson asset class data, there is an additional button that brings up an Ibbotson disclosure form.

If you choose to create a new client, a wizard quickly guides you through the process. Here, you can enter names, addresses, phone numbers, dates of birth, gender and types of analysis (single or joint). If you want to add optional information, you can hit the details button and enter it. If the system is set up to import client data from another source you can click the import button and avoid manual data entry.

The wizard then prompts you to add family members, beneficiaries and advisor information. Next, you come to a critical juncture: plan selection. Here, you have five possibilities to choose from. The first, "calculators," is not a plan at all. It is a drop-down list offering you access to a number of different calculators, including a loan comparison calculator and one comparing the numbers for traditional IRAs against those for Roths.

The financial assessment is a very fundamental plan. It includes limited versions of net worth and cash flow statements; a retirement income outlook; income and retirement projection (limited to pension and estimated Social Security income); basic goal-setting; basic life insurance and disability insurance analysis; some reports; and some calculators. The asset allocation assessment performs a similar overview of investment assets. It can take as little as five to seven minutes to complete one.

You can draw your own conclusions about the usefulness of such assessments, but I'll offer a few observations. First, for someone just starting out, or someone of limited means who has never run any projections, the assessments can be a real eye-opener. Furthermore, they are a way to get new prospects engaged in a deeper planning relationship. Once clients see the results of the assessment, it could motivate them to get a complete plan. It's also good to know that these assessments can be advanced to Level 1 and Level 2 plans, which allows the advisor to use the data already captured if the prospect/client decides to go ahead with a financial plan.

Both Level 1 and Level 2 plans produce meaningful results and reports, so rather than do a feature-by-feature comparison, let's highlight some of the major differences. Only Level 2 plans allow the advisor to model a long-term care start date, perform detailed alternative minimum tax planning, adjust tax rate assumptions and account for capital loss carryovers. Level 2 plans also offer a more robust goal-based asset allocation analysis as well as a more sophisticated pre- and post-retirement asset allocation illustration. The Ibbotson mean variance optimizer, if licensed, is only available in Level 2.

Only Level 2 allows the advisor to really drill down into the detailed net worth and cash-flow statements. Social Security calculation overrides are limited to Level 2 as well, as is the advisor's ability to exclude self-employment income from Social Security tax. Savings strategy calculations and group disability income calculations are also allowed at this level.

If you want maximum flexibility to model Roth conversions, a detailed Level 2 plan is required. You'll also need Level 2 to plan for annuitization, income-producing real estate, business planning, employee stock option planning and estate planning. Level 2 also includes more sophisticated life, disability and long-term care planning.

If you're not sure which level you need, you can always start with Level 1 and upgrade later (though you can't "demote" a plan from Level 2 to Level 1).

Both plan levels can use average income tax rates or detailed tax rates (calculated like a form 1040). Plans using average tax rates can be converted to detailed ones, but not the other way around. In some cases, you'll need a more detailed method anyway, since the average tax rate assumption only takes into account a limited number of tax deductions and does not allow for alternative minimum tax calculations. The stock option, business planning and advanced estate modules all require the Level 2 plan and the detailed tax method.

Generally speaking, both plan levels allow you to select or deselect any of the available modules in the menu. This gives you flexibility to customize plans as required, though some modules depend on others. For example, if you select survivor income, the application requires the retirement module, and it will select it automatically if you have not already done so.

Pros
There's a lot to like here. The application is fast and responsive. In my opinion, the new look and feel is far superior to the old desktop version of Extended. By integrating the functions of both versions, EISI has delivered a more consistent user interface that makes navigation easier. The company has also built in sensible work flow.

The new client creation wizard and the plan creation wizard get novice users up and running rapidly. Even experienced users can benefit from these wizards. The program now offers a more intuitive and flexible process for setting goals and funding them.

Two portfolio settings are offered: One rebalances the accounts linked to a goal annually and uses the weighted average balance of the returns of the linked assets. The other does not rebalance, and each asset retains its separate rate of return throughout the plan.

Perhaps the single greatest enhancement is that an advisor can now include the current scenario and the recommended scenario in a single plan. This is a major departure from the way NaviPlan has worked historically, and it is a welcome change. The goal analyzer allows you to compare plans side by side with a focus on the plan's ability to fund (in percentage terms) all specified goals.

The "what-if" capabilities of the program have also been improved, and they are easier than ever to use. There are many reporting improvements, including some user editing capabilities.

Although I have not tested the "data scrubbing" feature, I like it a lot in principle. It indicates that EISI takes security and privacy concerns seriously.

As all users migrate to the new platform, there will eventually be only one NaviPlan product. As a result, EISI's ability to monitor, maintain, support and upgrade the application should be better.

Cons
I was a little bit disappointed to see, however, that EISI chose not to create an advisor dashboard as the start page. Such a page, with some practice analytics and perhaps some planning alerts, would be welcome in the future.
It also did not appear to me that the calculator section had been updated or enhanced. There might be room for some additions here.

The new client creation wizard is great, but it would be better if advisors could pre-populate the application with data from other applications. I believe the program works with Albridge, but I'm sure advisors would appreciate being able to connect with industry leading CRM systems.

Some operations, meanwhile, are still less easy to use. One example: You can display a cash-flow statement for this year and next year side by side, but I challenge advisors who have never done it to figure this one out on their own.

When I first tried the application, I ran into pop-up blocker issues. Since some advisors may have three levels of pop-up protection (their browser, their security program and perhaps a toolbar like Google's), they may find this to be a nuisance.
Finally, a Web-based application should be accessible regardless of the browser or operating system. NaviPlan Select is moving in that direction, but it isn't there yet. Internet Explorer and Firefox work fine with it in Windows, but I experienced minor issues with Chrome, and Chrome also had trouble with the program on a Mac whereas Firefox didn't. Hopefully, EISI will play well with all major browsers on both platforms soon.

Although I think Select is very good, long-time Extended users may at first find the move to the new platform frustrating. Almost every old feature and numerous new ones are there, but finding some of them will be a challenge. Overall, the new system is better, but overcoming old habits will take a little bit of time. In addition, EISI has not yet released a tool to convert old plans to Select. I expect the company will do this soon, however.

Overall, I'm optimistic about the new application. The interface is better, as is navigation. The reports and graphics have been upgraded. All the features of both Standard and Extended are there. If you like Standard online, you are probably going to like Select even more. If you are a current desktop Extended user, it may take you a bit longer to embrace the new program. But this is NaviPlan's platform of the future.