FAQ: Net Worth

Frequently Asked Questions

Need assistance with data entry? RightCapital is here to help! Please use the common questions and answers below to assist you in generating financial plans. For additional assistance use the link to our support team at the bottom of the article.

1

How can I add the rate of return associated with each investment account?

Answer: The rate of return associated with each investment account is tied to the breakdown of cash, holdings and/or asset classes used to assign value. The assumptions tied to each asset class will determine the growth assigned to each account. To view the rate of return and standard deviation associated with each investment account, visit the Investment Tab > Asset Allocation > Current Allocation dropdown menu and select the account of your choice.

2

Are expense entered in the Net Worth included in future cash flows?

Answer: Any expenses listed in the Net Worth, such as credit card payments, insurance premiums, property tax and loan payments, are automatically factored into the future cash flow projections. Therefore these values should be excluded when entering living expenses in the goals & expense areas since they have already been added to the Net Worth.

3

What impact does the "Managed" checkbox have on a financial plan?

Answer: The "managed" will help to indicate whether an asset is under the advisor's management. This checkbox will not impact future cash flow projections or AUM calculations. For advisors with Premium and Platinum subscriptions, this checkbox will allow them to sort client’s by “assets held away” within the RightIntel business intelligence dashboard. 

4

How are holdings classified in RightCapital?

Answer: When individual holding are entered into an investment account, they are automatically categorized through Morningstar's asset allocation breakdown. These holdings are listed with the previous night's closing value and will update on a daily basis.

5

How do I enter K1 Income? 

Answer: K1 & Partnership income is best-entered in Profile > Net Worth > Add Account > Other > Asset type: Business - Partnership. In this entry, you can add the income within the ‘Annual Distribution’ field. You will then see this amount as an inflow within the Income Inflows tab of the Cash Flows. This income will not be subject to FICA tax. Any amount that is to be subject to FICA tax, is entered in Profile > Income with a Salary card. 

RightCapital is committed to enabling your success. Each week, we set aside time to cover important updates and host a Q&A with the product team, giving you a direct line of access to the experts behind the curtain. Visit the Upcoming and Most Recent Webinars area to register today!

Also, be sure to check out the Getting started guide and our YouTube channel for more!

For additional assistance within RightCapital please contact Support.