Details Tab - Education Analysis - RightCapital Help Center

Within RightCapital's Education Funding Analysis tool, the Details tab is where you can take a closer look at the mechanics of what's happening as a result of your fine-tuned education funding proposal.

The Education Funding Analysis can be found within the Education module of each and every client plan:

Important note...

The cash flow details used within the Education Analysis will be based on the original Proposed Plan in the Retirement Analysis module. Any changes made to the proposed plan within the Action Items will impact the Education Analysis.

Within the Details tab, you will find two separate cash flow tables for each student that allow you to review the numbers behind the projections:

Using the first dropdown menu above the chart, you can choose between viewing the Education cost summary, and the 529 summary. Using the second dropdown menu, you can choose which student you'd like to view.

The Education Cost Summary table provides additional cash flow details on education costs and funding. This table can be a useful backdrop for talking points such as:

The impact of scholarships & student borrowing on a student's education costs.
How much of a student's education is funded with 529 assets vs other sources.
Any shortfalls that may occur if the selected funding sources are insufficient.

The 529 summary table tracks beginning and ending 529 balances each year, in addition to portfolio return, savings, and withdrawals once education costs begin. This table will only reflect 529 assets where the specified student is the beneficiary. Using this table, you can:

Highlight the impact of a change in 529 asset allocation on the portfolio return.
Visualize lump sum and additional annual 529 savings that have been entered via the Action Items.
Identify if a student's 529 accounts are being under or overfunded within the projections.

Note on Overfunding 529 Accounts:

If a student's 529 account is overfunded in RightCapital, the leftover funds will be used on the next youngest student once the beneficiary has finished school within the plan. However, if there are no more education costs in the rest of the plan, excess funds in a 529 can grow endlessly and skew your plan output. Be mindful not to overfund 529 accounts for the youngest student in the plan!

For more details on using the Education module to dial in an education funding proposal for a client, click here.