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.
The cash reserve goal sets the amount of assets that will earn a cash rate of return throughout the cash flow projection. The cash reserve goal can be used to show a client the benefit of investing funds that are 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.
The Cash Reserve Goal is best used to illustrate the benefits of investing funds compared to leaving them in cash. Any cash listed in the net worth will be reinvested into the taxable accounts if it is not included in the Cash Reserve Goal. Therefore advisors can simply reduce the cash reserve amount to simulate reinvesting cash within the plan.
You will not see the cash reserve goal as an option unless you have selected “use cash reserve goal” for the cash management method within the Gear icon > Settings > Methodology tab of the plan.
For additional assistance within RightCapital please contact our Support team.
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