Investment Module - RightCapital Help Center

Managing your client's investments with excellence is perhaps the first reason why a client sought out your services. RightCapital provides the tools you need to visualize the impact of investments on a client's overall retirement plan.

To access the Investment tab, select the client from your client list, click open client, then select Investment once the client's portal has loaded.

There are six tabs within the Investment module: asset allocation, allocation path, sector and style, concentration, tax allocation, and holdings. Each tab is covered here. Let's jump into it:

Asset Allocation

The Investment tab defaults to the asset allocation screen. Displayed are two pie graphs comparing the current allocation to the target allocation. The projected return rates and standard deviation of each are displayed below the graphs, and the numeric breakdown of allocation is provided within the list in the middle.

Current Allocation

The Current Allocation reflects the Asset Allocation information you have entered in the client's Profile > Net Worth > Investment section. On the left side, under Current Allocation, a dropdown menu is available to select "All Accounts" (default) or a specific account to view.

Customizing the Current Asset Allocation:

Select the "All Account" dropdown to select what accounts you would like to view in the Current Allocation chart.

Groups:

Select Groups to sort the allocation details for the Client’s accounts, Co-client’s accounts, Taxable accounts, Tax-deferred accounts, or Tax-free accounts.

Customized:

Select Customized to view the accounts you would like to see in the allocation details. Click on the account name to select and deselect.

Target Allocation

On the right side, under Target Allocation, a dropdown menu offers the ability to change the target allocation to any model built in RightCapital, including custom allocations, or the current asset allocation.

Action Items

The action items on the Investment > Asset Allocation screen demonstrate a specific dollar value to re-align a client's investments with the chosen target allocation.

"Detail" sub-tab

Select Detail next to Summary to see a breakdown of each asset class, compared by current allocation versus target allocation.

The bar graphs extending to the left of the midline (0%) indicate that the current allocation is overweighted in that asset class.

Bars extending to the right of the midline indicate that the current allocation is underweighted in that asset class.

In the example above, International Equities are overweighted (27% currently, with a target of only 8.5%) and US Corporate Bonds are underweighted (0% currently, with a target of 27%).

Allocation Path

The allocation path allows users to easily illustrate the client's investment strategy over time. The allocation path graph demonstrates the client's age on the x-axis and the percentage of investments held in equity, fixed income, and cash on the y-axis. This visualization easily models a client's shifting investment allocation over their life expectancy.

Adjusting the Allocation Path

Users can leverage the allocation path to model alternative investment strategies within a financial plan. The allocation path can be adjusted using three dropdown menus that include the client's 'starting allocation', 'retirement allocation', and 'glide path' allocation. The default dropdown menus that appear in the allocation path are based on the 'Allocation method' setting that is being used for the financial plan. This allows users to easily visualize the breakdown of equity, fixed income, and cash, over time, for different investment strategies.

The allocation method setting can be adjusted in each plan by selecting the Gear Icon > Settings > Methodology > then changing the Allocation Method. If the allocation method is set to “Enable glide path”, users can adjust the starting allocation and adjust which glide path is being used within the allocation path module. If the allocation method is set to “Pre- and post-retirement allocation”, the allocation path will allow users to adjust the starting allocation and retirement allocation. Lastly, If the allocation method is set to “Same allocation for all years”, the allocation path will allow users to adjust the starting allocation.

For more information on the 'allocation method' settings and their impact on a financial plan please click this link.

Changes made to the Allocation Path will not impact the Retirement Analysis planning module. Only the details listed in the Allocation Method settings will be applied to the client's Monte-Carlo analysis.

Sector and style

Equity investments are categorized by sector on this screen. The first tab, Equity Sector, compares the breakdown of investments identified by public ticker symbol to the Vanguard Total Stock Market Index.

This is a visual tool to empower you, the client's advisor, to efficiently diversify a portfolio based on a broad market index. Under Action Items, RightCapital will highlight the most overweighted and underweighted categories in the portfolio.

"Equity Style" sub-tab

Selecting Equity Style displays two equity distribution grids, comparing the current allocation to a broad market index.

The action items identify the two categories most out of balance.

Concentration

Diversity is critical to effective long-term portfolio growth. A concentrated position is defined as any position which is equal to or greater than 5% of the total portfolio value. Adjust the concentration threshold slider to customize the percentage used in the analysis. The slider ranges from a minimum of 1% to a maximum of 20%. RightCapital will identify the concentrated positions on the Concentration tab and display the steps needed to eliminate the concentrated position within the action items at the bottom of the screen.

Tax Allocation

The Tax Allocation tab will provide a overview of how invested assets are categorized by taxation: taxable, tax-deferred, and tax-free. Click into each tax category to view the individual account details.

Tax-deferred accounts include:

401(k) and 403(b) accounts
Traditional IRAs
SEP IRAs
Simple IRAs

Tax-free accounts include:

Roth 401(k)
Roth IRAs
529 college savings plans
Health savings plans
Cash Value of insurance policies
Any other account manually specified as tax-free

Holdings

The Holdings screen allows you to see a consolidated view of holdings in all client investment accounts.

You can use the drop-down boxes to filter the holdings list by the owner, tax category of the account, or individual account. Additionally, click the column headings to sort the holdings list by account name, holding name, quantity, price, or value.

If you click on the green download button in the upper right-hand corner, you can download a .csv file containing the holdings associated with the selected filters.

Note: Cash entered in the 'Cash' field on the Investment card will not be included in the Holdings list.