Managing your client's investments with excellence is perhaps the first reason why a client sought out your services. RightCapital's Investment module provides the tools you need to visualize the impact of investments on a client's overall retirement plan:
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!
Check out our Investment Module Training Video!
If you'd prefer to watch a video overview of each tab within the Investment module, you can click the link below for our dedicated Investment Module Training Video:
The Asset allocation tab provides pivotal insight into a household's asset allocation as of today. Here you can compare a household's current allocation to a chosen target allocation. The projected annual return and standard deviation of each are displayed below each chart, and a percentage breakdown by asset class is provided in the center:
The current allocation provides an insightful look into a client's big-picture investment allocation, blending together all of a household's invested assets into a single, overall investment portfolio. You can also view allocations for individual accounts or specific groups of accounts on this side. The target allocation allows you to choose any model portfolio built in RightCapital, including custom models.
For more detailed information on the Asset Allocation section of the Investment module, please feel free to utilize the resources below:
The Allocation Path tab allows you to easily illustrate to a client how their investment strategy will change over time. While the asset allocation section breaks down a client's investment strategy as of today, the allocation path visualizes their investment strategy out into the future.
This can be a valuable tool in demonstrating to clients how their overall investment allocation might shift alongside their changing financial goals as they age. The allocation path graph will use the primary client's age on the x-axis, and the percentage of investments held in equity, fixed income, and cash on the y-axis. A client's allocation path can be adjusted via the 'Allocation Method' plan setting. You can access this setting within the Gear Icon > Settings > Methodology tab.
For more detailed information on the Allocation Path section of the Investment module, please feel free to utilize the resources below:
The Risk analysis provides you with powerful tools to examine the risk of a client's assets, assign clients risk questionnaires to complete, and help clients better visualize and understand their own tolerance for risk.
The Risk analysis is available for advisors operating on RightCapital's Premium and Platinum subscription tiers. This module is not available as a part of our Basic subscription. To learn more, please feel free to utilize the resources below:
The Sector and Style tab provides a breakdown of the client's investments, identified by public ticker symbol, compared to the Vanguard Total Stock Market Index (VTSAX). This is a visual tool to empower you to efficiently diversify a portfolio based on a broad market index:
You can hover your mouse over the 'Equity Sector' chart to view specific percentages for each sector. Switching to the 'Equity Style' subtab will display two equity distribution grids, comparing the client's portfolio to the market index.
For more detailed information on the Sector and Style section of the Investment module, please feel free to utilize the resources below:
The Concentration tab will highlight any concentrated positions within a client's investment portfolio. This includes both investment accounts as well as stock plans.
By default in RightCapital, a concentrated position is defined as any position which is equal to or greater than 5% of the total portfolio value. You can adjust the concentration threshold slider in the Action Items to customize the percentage used in the analysis.
For more detailed information on the Concentration section of the Investment module, please feel free to utilize the resources below:
The Tax Allocation tab provides an overview of how a client's invested assets are categorized by taxation (taxable, tax-deferred, and tax-free).
Tax diversification is a critical part of many successful retirement plans, and this module clearly demonstrates to clients the breakdown of their assets between the three tax buckets. To "zoom in" to a tax bucket and view the individual account details, you can either click on a section of the pie chart, or click on a dollar amount to the right of the chart.
For more detailed information on the Tax Allocation section of the Investment module, please feel free to utilize the resources below:
The Holdings tab allows you to see a consolidated view of the holdings within a household's investment accounts. This page pulls in holding information from the Net Worth section of the Profile.
Using the drop-down menus above the holdings table, you can filter holdings by owner, tax category, or individual account. Additionally, you can click the column headings to sort the holdings list by criteria like quantity, price, value, and gain/loss.
For more detailed information on the Holdings section of the Investment module, please feel free to utilize the resources below:
