How to adjust individual client settings

RightCapital is designed to achieve financial planning, done just right. You are always in control of the advising philosophy and the underlying assumptions involved. You have complete control over each and every client's assumptions, providing a platform for world-class, personally tailored advising for each and every client.

There are numerous settings which may be adjusted for each client to tailor the planning approach for that client.

For a brief overview of client setting watch this short video.


Looking for global settings?

To make changes that affect all new clients, read the article on creating system-wide global presets.

This article outlines how to make changes on a client-by-client basis.

To access these settings, navigate to Advisor Portal > Clients > select the desired client > Settings.

Each of the settings are determined for each individual client, so make sure you have selected the correct client before updating the settings.  You can preset the values for each of the settings that will be applied to new clients under your Account information.

Planning Method

The default setting is  Modified cash flow based.

The planning method indicates how RightCapital handles the surplus or shortage of cash flow in any given year. To learn more about planning methods and the impact on a client plan, read the article on understanding planning methods as well as the article on cash flows.

Cash flow in simulation starts

The default setting is Current month.

This setting determines the timing of the cash flow projections, whether you use a rolling 12-month projection or illustrate a calendar-year based projection starting at the beginning of the current year or the next year.  See additional details on cash flow timing options.

Glide Path

The default setting is Same asset allocation for all years; No Glide Path. When using the default setting the client's specified asset allocation, entered in the Profile > Net Worth area, will remain constant throughout the life of the plan.

The second choice in the dropdown menu will be Pre and post-retirement asset allocation models; no glide path. This setting allows advisors to specify a pre-retirement and post-retirement asset allocation model to project invested assets into the future. If this setting is used, the ‘Asset Allocation’ selection in the Retirement > Analysis > Action Items will be used up until retirement and the ‘Retirement Allocation’ selection will be used post-retirement. New asset allocation models can be created in the Advisor Portal > Models Tab > Portfolios area to be used in all client plans.

The third choice is a default, or customized, glide path for each client. If a glide path is enabled, the client's investment allocation will slowly migrate to the glide path allocation over the specified number of years. See additional details about glide paths.

Planned distribution method

This setting determines how manual distributions interact with Required Minimum Distributions (RMDs) calculated automatically by the system. Options include having the manual distributions added to the RMDs, having the system calculate the greater of the manual distributions and RMDs, or overriding the system's RMD calculation to just use the manual distributions. This setting applies across all account types.

RMD added to manual distribution is the default; in this  case, RightCapital  will add the amount of any inputted distributions to the calculated RMD amount.

Greater of RMD and manual distribution means that if the RMD calculated is greater than the distribution entered, RightCapital will use the RMD amount;  otherwise  the inputted distribution will just distribute the amount indicated.

No RMD, manual distribution only means that RightCapital will not automatically calculate the RMD and will only use the inputted distributions.

For more, see the article on income distributions.

Cash management method

This setting determines how cash in bank accounts is projected in the cash flow and Monte Carlo projections.  You can either use cash reserve goals to illustrate investing cash or managing cash balances over time, or you can allow bank account balances to be treated as cash, and liquidate them either before or after taxable investments.  For more information, please see the detailed article on cash management.

Health Savings Account distributions

The default setting is Start to fund medical expenses immediately.

This setting determines when the system will start using Health Savings Account (HSA) assets to fund medical expenses.  This can start immediately or once one or both clients retire.  If you select Start to fund medical expenses at first retirement, HSA assets will always accumulate until the year the first client / co-client retires.  If you select Start to fund medical expenses at second retirement, HSA distributions will start after both clients retire.  If there is only one client (no co-client), you should select either funding expenses immediately or at first retirement, since there is no second retirement.

Include bank accounts in investment allocation

This setting includes cash held in bank accounts to the asset allocation mix (typically displaying an overall higher percentage of assets held in cash). Bank account values are added to Investment values for a combined allocation chart on  Client Portal > Investment > Asset Allocation.

Use taxable account to fund IRA and 529 saving when current year cash flow is inadequate

This setting will automatically calculate withdraws (and taxes) from a taxable investment account to maintain savings goals in non-taxable accounts in years when other income sources are unable to meet the specified savings goal.

If this setting is unchecked, RightCapital will only fund contributions to IRA, Roth IRA, and 529 accounts from cash flows. If there are insufficient cash flows in any year RightCapital will not reflect the contributions in that year.

If the setting is checked, RightCapital will first fund those contributions from cash flows; if there are insufficient cash flows in any year RightCapital will then look to fund those contributions from the value in taxable accounts. If there is no available money in taxable accounts, RightCapital will not reflect the contributions in that year.

Rebalance across account type for current allocation

This setting will automatically calculate a shift in assets from a client's current values to such values that will align with the current investment allocation breakdown.

If checked, RightCapital will use the rate of return associated with the overall current allocation for each investment type (e.g. taxable account, IRA, etc.) when calculating the projections using the client's current allocation.

If unchecked, each investment type will grow using the returns associated with the current allocation for that investment type only.

Take annuity RMD from IRA accounts first

This setting, if checked, allows you to delay taking withdrawals from qualified annuities with a lifetime income guarantee ( set up with a distribution type of 'Lifetime Income') by satisfying the annuity's Required Minimum Distributions (RMD) from the client's traditional IRA accounts or other qualified annuities.  This allows for the ability to delay beginning withdrawals on the lifetime income annuity in order to provide a higher guaranteed income amount for your clients.

If the setting is unchecked, we will calculate the RMD for lifetime income annuities each year starting in the year the client turns 70 1/2, and will distribute the greater of the RMD or the client's lifetime income amount in that year.

Also, if this setting is checked, once the client has started taking lifetime income withdrawals, if the client's RMD exceeds the lifetime income amount we will take the excess from the client's IRA or other qualified annuities.

Note: only use this setting if your client has sufficient funds in their IRA or other qualified annuity to cover the additional RMDs.  If there is insufficient funds in their IRA or qualified annuity to cover the additional RMDs, the client's RMDs will be understated as we will not take the balance from the annuity.

Whether the setting is checked or not, once lifetime income withdrawals begin, those withdrawals will count towards the total RMD required across your clients' IRA and qualified annuity accounts.  If the lifetime income amount exceeds the RMD calculated for the lifetime annuity, we will reduce the RMD from the client's traditional IRA by the excess amount.