Taxable Savings - RightCapital Help Center

Taxable Savings cards can be used to reflect after-tax contributions to a taxable investment / brokerage account. If your Planning Method setting is set to 'Modified Cash Flow Based' or 'Goal Based' as a default, a Taxable savings card will be pre-populated within the Savings area. A new taxable savings card can be added by clicking Add Saving in the upper right, and choosing the Taxable option:

Taxable Savings Data Entry

Click on this card to open a data entry drawer on the right side of your screen, allowing you to input the contribution information

Start by choosing the client, co-client or joint as the Owner. Depending on your chosen Target option, enter the Contribution as an annual dollar amount or as a percentage of income. Lastly, dial in the Saving starts and Saving ends dates to determine the duration of the contributions.

If you have 'Annual dollar amount' chosen as your target you can enter an optional Annual Increase, which will be applied to the contribution amount each year within the cash flow projections.

Don't see a Taxable savings option?

If you are using a 'Cash Flow Based' planning method, any and all excess cash flows will be automatically saved and reinvested into the client's taxable account bucket. This function eliminates the need for you to manually enter taxable savings.

To learn more about the planning method setting and its impact on your client plans, feel free to reference the article below:

Impact of Planning Method - Knowledge Base

Additional Information

Taxable savings can be easily tracked within the Cash Flows module in the Retirement section. Within the Cash Flows > Summary, taxable savings will be reflected in the Net Flows column to the far right. Negative numbers in this column (numbers within parenthesis) indicate cash flow shortfalls. Excess income that is not being saved into the taxable bucket will be displayed in the 'Spend Unsaved Cash Flows' column:

Important Note on Taxable Savings:

Please note that taxable savings will only occur in years that clients have adequate income to make those savings. For example, if you enter $10,000 in taxable savings and the clients only have a $5,000 cash flow surplus in a given year, only $5,000 will be saved. In years with cash flow deficits, taxable savings will not occur.