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.
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.
Customizing the Current Asset Allocation:
Select the "All Account" dropdown to select what accounts you would like to view in the Current Allocation chart.
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.
Select Customized to view the accounts you would like to see in the allocation details. Click on the account name to select and deselect.
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.
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%).
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.
"Equity Style" sub-tab
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
Tax-free accounts include:
529 college savings plans
Health savings plans
Cash Value of insurance policies
Any other account manually specified as tax-free
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.