RightCapital is a powerful tool, equipping you with the clarity needed to ensure your client’s retirement success. An important consideration is how to calculate cash flow at any given point.
System-wide setting
To learn more, check out our article on Client Presets.
Client-specific setting
You can switch planning methods freely without losing any data. There are three Planning Method options:
Traditional Cash Flow
The client's expected inflows and outflows are known, but
The client may not know what they expect to save; or
When the client may be more likely to save than spend.
Modified Cash Flow
The client's level of expenses is less understood (by the client), but
The client’s income and savings are known, or
When the client may be more likely to spend than save.
If you are manually making any Taxable savings, those will continue to appear in the Net Flows column.
Net cash flow income from the sale of stock options/grants
Any proceeds from the sale of real estate or a business
Goal Based
This method ignores income and expenses and instead looks only to goals, savings, and account information to sketch up a rough picture of retirement. Using this method only requires:
The client's level of savings,
The client’s retirement spending goal, and
Key financial goals.
Goals-Based Cash Flow method is not recommended if you wish to use other tools besides the Retirement Projection for a client.
For detailed information on how these methods impact the Cash Flows tab in the Retirement module, check out our article, Understanding the Cash Flow Table.
