Plan Settings - RightCapital Help Center

Within each client plan, the Gear Icon > Settings tab is where you can streamline the settings of the financial plan to better align with your unique approach to planning. There are six subtabs available here: Methodology, Return Assumptions, Account Assumptions, Tax Assumptions, Other Assumptions, and Budget Categories:

This article will provide you with a brief overview of each subtab, followed by links to more detailed resources. Always remember that if you have any questions, you can reach out to the RightCapital Support Team for assistance!

Methodology

The Methodology tab is the engine that keeps your RightCapital plans running. Here, you'll find a list of plan settings and calculation options that impact all facets of a client's future-looking projections:

The Gear Icon > Settings > Methodology tab enables you to adjust settings on a client-by-client basis, impacting only the household you are currently working on. You can adjust the global presets for these same settings within your Advisor Portal, by navigating to the Client Settings > Client Presets tab.

For a detailed description of each methodology setting and its impact on your client plans, please reference the resources below:

Return Assumptions

The Return Assumptions tab is where you can customize the interest, dividend, and capital gain percentages for each asset class. These assumptions are referenced in tandem with a client's unique asset allocation to project growth on a client's assets out into the future:

The Gear Icon > Settings > Methodology tab enables you to adjust return assumptions on a client-by-client basis, impacting only the household you are currently working on. The 'Global Assumptions' that each plan will use as a starting point are set within your Advisor Portal, via the Assumptions > Asset Return tab.

For a detailed overview of asset return assumptions at the global level, please reference the resources below:

Account Assumptions

The Account Assumptions tab allows you to specify the percentage of a client's assets that will pass to a surviving co-client upon their passing. It also enables you to enter account values from the previous year, to improve year one RMD calculations:

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.

For clients at or nearing RMD age, you can also select 'Specified year-end value' in the Value Used to Calculate RMD in First Projection Year column. Enter a year-end value from Dec. 31st of the previous year, and the RMDs for the first year of the plan will be calculated based on that figure.

You can learn more about Account Assumptions via the link below:

Account Assumptions - Knowledge Base

Tax Assumptions

The Tax Assumptions tab is where you can adjust your tax law setting, assumed portfolio turnover, and other important tax assumptions. You can also enter carryover values from previous years, and specify the household's MAGI from the prior two years:

The Tax Law setting and other tax assumptions play an important role in the tax framework used within the plan projections. Capital loss carryover and other carryover values will flow through and impact a client's tax calculations. Entering prior year's MAGI will allow for more accurate calculations that rely on a MAGI lookback, such as Medicare premiums and Student Loan IDR plans.

Most of these inputs are plan-specific, but you can adjust the global presets for some of the tax assumptions within your Advisor Portal by navigating to the Client Settings > Client Presets tab.

You can learn more about Tax Assumptions via the link below:

Tax Assumptions - Knowledge Base

Other Assumptions

The Other Assumptions tab allows you to customize household-specific inflation rates, make adjustments to social security benefits, and tweak miscellaneous assumptions at the client level:

The inflation assumptions are used to project different types of goals and expenses out into the future. The social security assumptions can be used to reduce future social security benefits within the projections, or to set a discount rate for the social security optimizer. Misc. assumptions impact the cost of purchasing and selling real estate, as well as the reduction in living expenses associated with the death of a client.

Both the inflation assumptions and miscellaneous assumptions can be adjusted on a client-by-client basis within this area, impacting only the household you are currently working on. The 'Global Assumptions' that each plan will use as a starting point are set within your Advisor Portal, via the Assumptions > Inflation tab, and Misc. tab, respectively.

For more information on Other Assumptions, as well as an overview of inflation assumptions at the global level, please reference the resources below:

Budget Categories

The Budget Categories tab is where you can add, remove, and edit custom expense categories, income categories, and other categories for each client plan:

Expense categories are used when filling out a detailed worksheet in the pre-retirement living expense or retirement living expense data cards. Expense, income and other categories are all used within RightCapital's Budget Analysis tool for advisors with premium or platinum subscriptions.

To learn more about budget categories and RightCapital Budget Analysis tool, please reference the links below: