FAQ: System-Wide Client Presets

Frequently Asked Questions

Need assistance with settings and assumptions? 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

What is the most common planning method? 

Answer: Modified Cashflow is the most commonly used planning method. Since this method spends off excess income not attributed to savings, expenses, and goals, it provides the opportunity to under-promise and over-deliver on expected savings. 

2

Is the cash reserve goal for an emergency fund?

Answer: The cash reserve goal can represent an emergency fund, but its primary goal is to designate the amount of invested assets that earn a cash rate of return during the specified timeline. The cash reserve goal simplifies demonstrating the benefit of re-investing funds currently held as cash. In the graphic below, you can see the action of using the cash reserve goal to show the benefit of investing $250,000 in the proposed plan.

3

Do these settings apply to every advisor in my firm? 

Answer: No, these settings only impact the individual advisor logged into RightCapital. These settings will be applied to all new clients added but will not adjust settings for existing client plans.

4

What is the impact of Allocation method?

Answer: RightCapital allows advisors to demonstrate shifting a portfolio's allocation over time. When set to 'same allocation for all years', the plan will keep a static allocation on the portfolio. When set to 'pre and post-retirement,' the pan can demonstrate shifting the portfolio's allocation upon the first client's retirement. For a more gradual approach, use the 'enable Glide Path" option to show a gentle transition of the assets over time, similar to a target date fund.

5

Why doesn't my plan include the current year? 

Answer: The “Cash Flow in simulation starts” setting impacts which year the financial plan begins. When set to 'current month,' the financial plan operates on a rolling 12-month calendar, projecting data 12 months from today. Alternatively, Jan. 1st of next year will display data that aligns with the following year. The financial plan will not include data cards starting and ending in the current calendar year for both options. When utilizing 'Jan. 1st of this year' the financial plan will allow you to use data cards entered for the current calendar year.

6

Does RightCapital apply a different rate of return to each account? 

Answer: RightCapital can differentiate the rates of return by account type but not individual accounts. When the 'rebalance across account type' setting is unchecked, each investment type (IRA, 401(k), Taxable account) will earn its specified rate of return however, this mitigates the ability to propose different allocations in the future and use the glide path functionality.

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

For additional assistance when changing settings within RightCapital please contact Support.