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Overview
The Redraw Debt strategy in AdviserLogic’s Digital Advice module helps you model and advise on using redraw facilities within existing loan products. This strategy is part of the broader Debt Management strategies and allows advisers to structure recommendations where accessing loan funds through redraw may support investment funding or manage large client expenses, while also considering repayment implications and cashflow outcomes.
📌Note
Before completing this advice, you may want to model a Debt Management Strategy in the Cashflow Module. The modelling can be added to the advice to support your recommendation.
Strategy Selection
From the Digital Advice - Scenarios Screen, select the Add Scenario icon.
Select the client the advice is for, or select Joint to create advice for your client and partner. Select the type of advice (SoA or RoA), then Proceed To Scope.
Select the Redraw Debt strategy from the Strategy screen. Select the relevant goals set, or skip this step, and then Proceed.
Screen Navigation
The Redraw Debt section is divided into two parts.
On the left is a list of the client's existing Liabilities with the option to Redraw funds. On the right is a summary page of the actions taken.
📌Note
If the Existing Liabilities don't show, please follow the Create Liability instructions for non requisite fields .
The first action is to release funds from the client's existing Liabilities by adding the amount tobe released to the Redraw column of the Liability.
Summary
On the right-hand Summary window, you will see a list of the transactions you have created. These transactions are deletable by hovering over the individual transaction and selecting the Rubbish bin Icon.
The Line items are divided into three main columns: Existing, Redraw, and Projection.
Existing
Shows the client's existing assets.
Redraw
Shows the recommended transactions you have entered.
Projected
Shows the remaining amount from the Existing plus the Redraw amounts.
Total Recommendation Amount
The Total Recommendation Amount can be found at the top right of the right-hand side window.
Asset Allocation and Product List
Access the Asset Allocation Tool and Product List from the three-dot menu at the top right of the window.
Asset Allocation Tool
The Asset Allocation Tool is the same as found in Advice Tools.
It will show the asset allocation information specific to your recommendation.
Product Detail List
Selecting Product Detail List will download a spreadsheet with a detailed product list to your downloads folder.
Apply Funds
When the funds have been released, Proceed to Apply Funds by selecting the button from the bottom right of the window.
The Apply Funds screen is similarly divided into two sections. On the left is a list of the client's existing Assets and Liabilities, and on the right is a summary screen.
The Summary section of the Apply Funds screen shows the Available Funds released from the redraw, along with the client's existing Liabilities.
On the Apply Funds screen, you can apply the released funds to pay off the loan and purchase additional assets.
Pay Down Liabilities
Pay down the client's existing liabilities by adding the amounts to the transaction column and then clicking outside the field. These will now show in the summary window.
As the Liabilities are paid down, the remaining amount will show in the Summary window under the Remaining Amount column.
Add Additional Assets
To purchase additional assets with the released funds select the New Assets or Add Model Portfolio/SMA button from the top of the left-hand window.
New Assets
Selecting the New Assets button opens a pop-up window where you can choose the type of asset to create. These fields are identical to the Assets fields throughout Adviserlogic.
Managed Funds
Australian Shares
Bank Deposit
Custom Product
Other
📌Note
The amount entered must be within the limit of the Available Amount
Model Portfolio/SMA
Similarly, to add a previously established Model Portfolio or SMA select the ModelPortfolio/SMA button and select it from the drop-down.
📌Note
Ensure that any other funds that need to be allocated are allocated prior to this step, as adding Model Portfolio/SMA will distribute all the remaining funds.
Redistribute Funds
To distribute the remaining funds among clients exiting investments, enter the allocation amounts in the Transaction column.
Any remaining amount will also show in the summary window. The full Remaining Amount must be utilised to proceed.
Once the correct amount has been entered, select Proceed to Disclosure Fees.
📌Note
The Remaining Amount MUST be $0.00 for the Proceed button to become active.
Edit the Advice Document
You may also edit the advice document from within the scenario by selecting the Save And Preview button from the top right of any screen within a digital advice scenario and following the Advice Editing Instructions.
Fee Disclosure
After editing the text to your liking, select the Proceed to Disclosure Fees button at the bottom right of the screen. From there, add your fees and complete your advice.
Link Cashflow
After completing the advice, you may add any previously created cashflow modelling to the scenario by selecting the Link Cashflow option from the Scenario Tile. The cashflow tables will be drawn into the final advice document.
