Data Entry: System-Wide Client Presets

Adjusting System-Wide Client Presets

RightCapital exists for financial planning, done just right. RightCapital is perfectly tuned for tailor-made advising. The first step in breaking out of the box and letting your unique approach to advising shine is to customize the global settings that will be applied to new clients you create or import from a 3rd-party CRM integration.

Navigate to Advisor Portal > Gear Icon > Account > Client Presets.

For a brief overview of the adjusting system-wide client presets watch this short video.


Looking to change settings for existing clients or just one client?

To change settings on a client-by-client basis, read the article on client settings & methodology.

This article identifies how to make changes that affect all new clients.

All values listed on the Client Presets tab will be applied to new clients that are created in RightCapital.  Any changes made will only apply to new clients, existing clients that you have in the system will not be impacted.

Planning method

Default setting is Modified cash flow based.

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

Cash flow in simulation starts

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.

Allocation Method

Default setting is Same asset allocation for all years. 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. When using this option the current plan will use existing investments entered into the Profile >Net Worth area to determine the pre-retirement asset allocation. An additional dropdown menu will appear, under the allocation method, to set the post-retirement allocation for the current plan. This setting allows also allows users to specify pre-retirement and post-retirement asset allocation models for proposed plans, in the Retirement > Analysis > Action Items area.

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.

If you choose to uncheck the "Rebalance across account types for current allocation" setting the allocation method will use Same asset allocation for all years by default.Planned distribution method

Planned Distributtion Method

Default setting is RMD added to manual distribution.

The default option combines any distributions inputted with the calculated RMD amount, for one distribution value (the sum of RMD and other distributions).

Greater of RMD and manual distribution means that only one distribution will be used: either the distribution inputted, or the RMD amount, whichever is greater.

No RMD, manual distribution only ignores the RMD and only uses distributions inputted.

Cash management method

The default setting is Use cash reserve goal to manage cash levels

The default option allows you to use cash reserve goals to illustrate investing cash or managing cash levels over time.  The other two options allow bank accounts to grow at cash rates without using the cash reserve goal, and to determine whether cash or taxable investments are spent first to fund cash flow needs.  More details are available.

Health Savings Account distributions

This setting determines when the system will start using Health Savings Account (HSA) assets to fund medical expenses. The following options will help you customize automatic HSA distributions in RightCapital:

  • Start to fund medical expenses immediately: HSA assets will accumulate until the first medical expense takes place in future cash flows.
  • Start to fund medical expenses at first retirement: HSA assets will accumulate until the year the first client / co-client retires. At that point, the HSA will automatically distribute to cover medical expenses.
  • Start to fund medical expenses at second retirement: HSA assets will accumulate until both clients retire.  At that point, HSA's will automatically distribute to cover medical expenses. If there is only one client (no co-client), you should select either funding expenses immediately, at client's age, at calendar year, or at first retirement, since there is no second retirement.
  • Start to fund medical expenses at client's or co-client's age: HSA assets will accumulate until the specified client's age. At that point, the HSA will automatically distribute to cover medical expenses.
  • Start to fund medical expenses in calendar year: HSA assets will accumulate until a specific calendar year. At that point, the HSA will automatically distribute to cover medical expenses.

Planning Horizon 

This controls the default planning horizon (age at which we assume the client(s) die) for both the client and co-client.

Residence state

Default setting is your residence state.

The residence state determines the state used for calculating state income tax. This will automatically update on a per-client basis if a state is indicated when adding the family to RightCapital. To update the residence state after a client has been added, navigate to Client Portal > Profile > Family and clicking on the Client card.

Average AUM Fees

Default settting is 0%.

Indicate the average AUM fee that will reduce all non annuity invested asset returns within each new financial plan.

Spending Strategy

Default is inflation adjusted.

Indicate the retirement spending strategy that will be used to project retirement expense goal within each new financial plan.

Target allocation

Default setting is Moderate.

The Target Allocation is the asset allocation model that can be compared to the client's current allocation on Client Portal > Investment > Asset Allocation. Create custom asset allocation models or use the default models included with the software.

Historical Net Worth Period

This controls the default time period for the Historical Net Worth chart on the Dashboard > Balance Sheet screen.

Other settings

Include bank accounts in Asset Allocation chart

The default setting is to NOT include bank accounts in asset allocation chart.

This global 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

The default setting is that clients will NOT use taxable accounts to fund IRA and 529 savings when the current year cash flow is inadequate. If there are insufficient cash flows in any year RightCapital will not reflect the contributions in that time period.

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. This setting will automatically calculate a withdraw (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.

Rebalance across account types for current allocation

The default setting is that financial plans will rebalance across account types for current allocation.

This setting will automatically calculate a shift in assets from their 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. Additionally, when this setting is unchecked the Allocation Method setting will be impacted. You will not be able to propose a new asset allocation model as RightCapital will always use the current allocation for each investment type.

Take annuity RMD from IRA account first

The default setting is that financial plans will NOT take annuity RMD from IRA account 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 clients to delay withdrawals on the lifetime income annuity in order to provide a higher guaranteed income amount in future cash flows.

If the setting is unchecked, we will calculate the RMD for lifetime income annuities each year starting in the year the client turns 72, and will distribute the greater of the RMD or the client's lifetime income amount in that year.

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.

Spend unsaved RMD/distributions

The default setting is that clients will not spend unsaved RMD/distributions.

If you wish to have RMDs, and any manual distributions, automatically spent rather than saved, check the 'Spend unsaved RMD's box in the client settings. When checked this setting will automatically spend excess income from Required Minimum Distributions that is not used for expenses or goals in a specific year. Spent RMD's are can be seen in the Retirement> Cash Flows > Summary > "Spend unsaved cash flows" column.

If unchecked, excess RMD income will be saved and reinvested into the taxable bucket of assets. This setting will only display on the Advisor Portal > Client Settings tab if a Modified Cash Flow Based Planning Method is selected.

Include taxable savings in Planned Savings column

The default setting is taxable savings will NOT be included in the planned savings column of the cash flows.

When using the Modified Cash Flow planning method, this setting will display taxable savings in the Retirement > Cash Flows > Summary tab under "Planned Savings" column. This will not change any calculations, but it will alter the display. Instead of showing the taxable savings in the "Net Cash Flows" column, they will appear in the "Planned Saving" column. This setting will only display on the Advisor Portal > Client Settings tab if a Modified Cash Flow Based Planning Method is selected.

Distribute Investment income from taxable account after retirement

The default setting is that investment income from taxable accounts will never be distributed as income, rather it will be saved and reinvested.

This setting allows users to distribute investment income (interest + dividends) from taxable accounts at designated times within the plan. When enabled, investment income will display in the Cash Flows section under the Income Inflows column. Distribution of investment income can begin after the first client retires, every year, or never.

Allow display of scenario-specific cash flows

As a default, scenario-specific cash flows will not be displayed in the financial plan.

Advisors will have the flexibility to illustrate specific return scenarios in the cash flow tables. The cash flows automatically display a static/baseline investment return each year. When this setting is turned on, all new users can view the impact of varying return scenarios in the cash flow projections by adjusting the "baseline" dropdown menu. Customized return sequences can be added by the advisor in the Advisor Portal > Models > Scenarios tab.

Client action item permission

This setting controls how clients interact with the action items on sections like the Retirement Analysis screen. Learn more about setting client access permissions.

Discount rate used for Social Security Optimization

This setting allows you to apply a discount rate that will impact the optimal Social Security strategy. Users can select a specific discount rate or use the general inflation rate. If a discount rate is chosen, that rate will be used to discount all future Social Security benefits for each strategy back to the current year. The goal of this setting is to allow advisors to simulate taking income earlier and investing it as part of the optimal Social Security Analysis. For additional information on using the Social Security Optimizer please click here.

Client-specific plan settings

To set individual settings on a per-client basis, review information on the planning method and other plan settings here.