Investment accounts can be accounted for within a financial plan via the Net Worth section of the Profile, which is where all of a client's assets and liabilities are entered, along with their current balances. By default, the Net Worth is also the 4th step of the initial data entry process for newly created clients:
There are three ways to enter investments in the Net Worth tab. The first two methods involve Linking Accounts via Account Aggregation, or an advisor-level Integration. The third method is to Add Accounts manually. See below for an overview of each method.
If you are a premium or platinum RightCapital subscriber, your clients can link their investment accounts directly to RightCapital via Account Aggregation. This will automatically pull in current balances and position-level account data. Linking accounts via account aggregation can be done by clicking the Link Account button in the upper right of the page:
Within the pop-up window that appears, clients can use the search bar to find a given financial institution (or click one of the available quick links). They will then be guided through the steps to link their accounts at that institution. This typically involves entering their username/password, and completing some form of multi-factor authentication.
After accounts have been linked, they will populate in the appropriate account category on the left side of page. You and your clients can utilize the Connections menu to view and manage all active account connections:
Account Aggregation Availability
Trial
Basic
Premium
Platinum
Want to upgrade to use account aggregation? Send us a note using the in-app chat feature (or shoot us an email at support@rightcapital.com) and we'll get you set up shortly!
Many advisor-level Integrations can be used to link a client's investments directly to their RightCapital financial plan. This will automatically pull in current balances and position-level account data. Linking accounts via advisor-level integrations can be done by clicking the Link Account button in the upper right of the page, and choosing an integration from the dropdown menu:
RightCapital offers the capability to set up integrations with asset custodians, account aggregators, and other platforms that you may already utilize as a part of your tech stack. A full list of our integration partners can be found within the '...' More Menu > Integrations tab of the Advisor Portal:
After accounts have been linked, they will populate in the appropriate account category on the left side of the page. Account balances and position data will refresh automatically on a regular basis, keeping everything up to date within the plan.
In addition to cutting down on the time spent entering and updating account information, integrations are also the most stable way to link accounts in RightCapital. If and when it's possible, we recommend utilizing advisor-level integrations to link client accounts!
To manually add an investment account to a client's Net Worth section, click Add Account > Investment:
Investments in RightCapital encompass a wide swathe of account types, such as taxable accounts, 401(k)s, IRAs, and more. A full list of options can be found within the Account type dropdown menu. Different account types will require different information, but you’ll always be asked for the Account name and Owner.
There are two different Entry Method options for manually added investment accounts: Enter total balance, and Enter holdings / asset class. The data entry process will vary depending on the option you select here:
This option is quick and easy, allowing you to simply enter the Total balance of the account. You may also be asked for a Cost basis, depending on the account type.
The final step is to determine the Asset allocation for the account. You can either allocate the accounts manually using the Customized option, or you can use a Model Portfolio. More details can be found in the Asset Allocation section of this article.
Don't forget to allocate your investments!
By default, manually added investment accounts will have an allocation of 100% Other. This can skew a client's overall Current Allocation. Be mindful not to forget about allocating manually added investment accounts!
This option offers more granularity, allowing you to add specific holdings and asset classes to an account.
To add a holding, click the Add Holding button in the lower right. Once the holding has been added, specify the Ticker symbol and Quantity (you may also be asked for a Cost basis, depending on the account type). Click Save to finish adding the holding.
RightCapital partners with Morningstar for accurate, up-to-date holding data. After entering the ticker symbol, the Price and Allocation for that holding will automatically feed into RightCapital from Morningstar. The Value of the holding will be calculated and will contribute to the Total balance of the account.
In addition to specific holdings, you can also add general asset classes to the account by clicking the Add Asset Class button. Choose an asset class from the dropdown menu here, and then specify the Value. This option is helpful in cases where you may not have the full account details, or if certain holdings in an account are not in Morningstar's database.
When using this entry method, it is not necessary to manually allocate the account as the allocation for each holding will automatically pull in from Morningstar. However, you can always choose to override the Morningstar allocation if you'd like by customizing the allocation, or choosing a model portfolio. More on this below.
Regardless of whether investments have been linked or added manually, you are always in full control of the asset allocation. The allocation for each account will have a direct impact on the rate of return and standard deviation of the client's overall Current Allocation, making this a crucial step of the data entry process.
When adding an investment account, click the button under Asset allocation to open a new drawer on the right of your screen. Here, there are three ways to allocate investments in RightCapital:
Based on holdings / asset class: The Asset allocation will be determined automatically, based on the specific holdings and asset classes in the account. This is the default option for linked accounts, as well as for manual accounts with the Enter Holdings / Asset Class entry method selected:
This option is not available for manual accounts with the Enter Total Balance entry method selected.
Based on model portfolio: This quick and easy option allows you to choose from a list of available model portfolios. The asset allocation for the account will be set to the asset allocation of the selected portfolio.
RightCapital includes seven default model portfolios. Custom model portfolios can be added in the Models > Portfolios tab of the advisor portal, or even imported via certain integrations like Nitrogen.
To read more about Model Portfolios in RightCapital, click here.
Customized: This option allows you to specify the asset allocation by entering custom percentages for each asset class. When using this option, the total must equal 100% in order to save the allocation:
View allocation details in the Investment module!
After entering and allocating all of a client's accounts in the Net Worth section, the Investment > Asset Allocation module is the best place to view allocation details:
Contact Us
For additional assistance within RightCapital please contact our Support team.
Educational Webinars
RightCapital is committed to enabling your success. Each week, we cover essential planning modules and product updates.
RightCapital in Action
Check out our YouTube channel where we highlight Advisor Success Stories and share more Tips & Tricks!
