In RightCapital, you are always in control of the underlying assumptions that drive your plan output. You have complete control over each and every client’s individual account assumptions, providing a platform for world-class, personally tailored advising.
You can find the Account Assumptions within each client plan by clicking the Gear Icon > Settings > Account Assumptions tab:
The Account Assumptions page allows you to:
- Specify the percentage of assets that will pass to the surviving co-client at death
- Capture previous year account values to improve first year RMD calculations
% to Co-client
Within the % to Co-client column, you can specify the percentage of each account type that will pass to the surviving spouse or partner at death. By default, RightCapital assumes that 100% of all asset types will be passed to the surviving co-client:
The percentage of assets that you specify here will remain in the plan when the account owner passes away. The remaining percentage will be distributed to beneficiaries outside of the plan, and will exit the surviving client's cash flows. You can see the account value leaving the plan within the Cash Flows > Invested Assets > 'Beneficiary distribution' column, as well as in the Estate Analysis flowchart:
Value Used to Calculate RMD in First Projection Year
For clients at or nearing RMD age, you can choose to enter year-end account values to calculate more accurate RMDs in year one of the plan. This can be done using the 'Value Used to Calculate RMD in First Projection Year' column:
- If Current value is selected, RMDs in the first cash flow year will be calculated based on the account's current value, listed within the Net Worth section of the Profile.
- If Specified year-end value is selected, an additional field will populate in the 'Year-end Value' column. Enter the account value from Dec 31st of the previous year, and the RMD will be calculated based on that figure.
Please note that RightCapital buckets together accounts of the same type by owner. If a client has two 401(k) accounts for example, you will want to enter the combined balance of both accounts in this area.
