How to use Planning Modules
Become a Planning Module Expert
Now that you've begun to transform your practice into a streamlined efficiency machine with your clients at the forefront, dive into the details of each planning module using the resources in this article. In the links below we provide deep-dive articles and videos on each planning module to convey best practices when using RightCapital.
How to use this article:
- Navigate to an area of interest, using table of contents as a guide.
- Click the link associated with the planning module of your choice.
- Review "How to Use" articles to establish best practices on each topic.
The Dashboard area allows advisors to easily demonstrate where the client's assets, liabilities and total net worth stand as of today. Information flows seamlessly from data entry to produce warm visuals that create a backdrop for essential conversations in each of the following planning modules.
Snapshot: Looking for a customizable executive summary that showcases financial plan data? RightCapital's Snapshot module has you covered. Use this tool as the introduction for client meetings, or send it as a PDF to clients to keep them informed of financial progress.
Balance Sheet: Just like any well-run business, your personal balance sheet should always be in check. Your net worth is the difference between your assets and your liabilities. Assets are everything you own such as your home and investments, and liabilities are everything you owe such as the balance on your mortgage and other debt.
Liquidity: If a job loss or other financial hardship arises, a liquid emergency fund can help pay bills without dipping into savings or using high interest credit or loans.
Budget: A comprehensive budgeting tool for your clients that demonstrates spending habits and provides historical context for data entry input. This module uses transaction level detail pulled from aggregated bank and credit card accounts.
Debt: Help clients evaluate existing debt and propose debt reduction through a series of repayment strategies & refinancing options.
Student Loan: Help clients discover an efficient strategy for minimizing student loan repayments, refinancing loans and working towards loan forgiveness.
Tasks: Use tasks to keep momentum in-between client meetings. Here advisors can communicate objectives seamlessly to each client.
This area includes planning modules that illustrate asset allocation, compares equity sector and style, identifies concentrated positions and reviews the tax allocation. This overview helps to demonstrate where the client’s invested assets stand as of today.
Asset Allocation: Compare invested assets to target allocations, review the rate of return & standard deviation associated with each account and more.
Sector and Style: Compare how invested assets stack up against the market index. Advisors use this tool to determine where the client's equity investments are overweight or underweight compared to the broad market index.
Concentration: Determine if a client is properly diversified. Any concentrated position over 5% of the total investment portfolio will be listed in this module.
Tax Allocation: Visualize tax implications of invested assets with inviting visuals.
Holdings: View or download client investment holdings by account, by owner or by category.
This area allows advisors to illustrate financial planning goals, how they are being funded and what probability of success the clients have for reaching the end of their lives without running out of invested assets. The retirement tab also includes planning modules that provide a backdrop to conversations around Social Security decisions, Medicare decisions, future cash flows and unforeseen stressors.
Analysis: Advanced forecasting to compare probable retirement outcomes, review retirement income sources and analyze future cash flow details.
Stress Test: Visualize the impact of potential threats on a client's retirement success. These threats can be analyzed individually or cumulatively for any plan.
Social Security: World-class optimization factoring over 700 variables instantly. This module illustrates the optimal Social Security strategy, and highlights break even points when it makes more sense for the client to delay filing.
Medicare: Help clients enroll in Medicare with maximum benefits by setting their specific considerations and determining which Medicare choice is best for them.
Cash Flows: A granular view of a client's finances on an annual basis. This module allows advisors to see the movement of funds within the financial plan.
The insurance tab includes four separate analysis tools that use the data entry to assist an advisor in discussing the insurance needs for each client. To access the insurance analysis, visit the retirement tab then choose the Insurance tab within the primary banner. These planning modules will access information from the client’s initial data entry and existing insurance policies within the net worth to determine additional protection needs for each client’s future.
Life insurance: Visualize the impact of life insurance coverage and customize protection needs based on unique scenarios.
Disability: Visualize the client's readiness in the event of disability and propose additional coverage.
Long-term care (LTC): Visualize the end-of-plan impact of LTC insurance on investable assets and illustrate the benefits of proposed additional coverage.
Property and casualty: Create an effective strategy for umbrella coverage, homeowners insurance and auto insurance coverage.
Learn how to add Insurance types to a client's profile.
The education planning module allows financial advisors to demonstrate different funding strategies for satisfying college goals. This area can model the impact of scholarships, student borrowing, 529 savings and customized funding strategies on total education costs within a financial plan.
College Funding Analysis: Create customized funding strategies and evaluate total college costs within a financial plan.
The Tax planning module demonstrates the client’s effective tax rates, marginal tax rates, sample tax forms and tax efficient distribution strategies over a client’s planning horizon. Advisors use these planning modules to navigate difficult tax conversations with ease by demonstrating value with inviting visuals. Once opened advisors can choose from the tax estimate or distribution planning modules.
Tax Estimate: Review a client's effective tax rate, 1040 tax form, Schedules 1-4, taxable Social Security worksheet and Alternative Minimum Tax (AMT) form for every year in each plan.
Distributions: Visualize a client's marginal tax rates over their life expectancy and easily demonstrate the value of tax efficient distribution strategies.
Learn more on how state and local taxes are calculated in RightCapital.
This powerful planning module allows clients to see with clarity how their assets flow onto heirs after reaching the planning horizon. The estate planning module elevates your services as a critical component to your client's retirement success! Use the Estate module to illustrate, funeral expenses, probate expenses, legacy amounts for heirs and moving assets from investment accounts into different types of trusts.
Estate Planning Checklist: A simple way to keep track of important estate planning tasks.
Estate Analysis: The analysis module provides a comprehensive flow chart that illustrates assets being passed onto heirs. This analysis includes the impact of estate taxes, funeral & probate costs, charitable giving as well as the benefits of specific trust strategies.
Learn more about estate planning in RightCapital.
The Profile area of a financial plan holds the initial data entry details that create the foundation for the client's current plan. This area can be updated whenever there are major changes in the client's life.
Creating a client: Use the links and videos in this article to review the six initial steps of data entry.
Learn more about a client's profile in RightCapital.
The more area in each financial plan allows advisors to access secure cloud storage, financial calculators and generate reports.
Vault: A secure and accessible location to share relevant documents between you and your clients. The vault includes both private and shared cloud storage.
Calculator: Access the Human Life Value Calculator.
Report: Customize, download and print financial reports to share with clients.
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For additional assistance using and navigating the analysis tool please contact RightCapital Support.