The Net Worth section of the Profile is where all of a client's assets and liabilities are entered, along with their current balances. This pivotal step in the data entry process is where you will add bank accounts, credit cards, investment accounts, stock plans, loans, properties, insurance policies, and other assets.
There are three ways to enter accounts in the Net Worth tab. The first two methods involve Linking Accounts via Account Aggregation, or an advisor-level Integration. The third method is to Add Accounts manually. See below for an overview of each method.
If you are a premium or platinum RightCapital subscriber, your clients can link their bank accounts, credit cards, investments, and loans directly to RightCapital via Account Aggregation. This will automatically pull in current balances and position-level account data. Linking accounts via account aggregation can be done by clicking the Link Account button in the upper right of the page:
Within the pop-up window that appears, clients can use the search bar to find a given financial institution (or click one of the available quick links). They will then be guided through the steps to link their accounts at that institution. This typically involves entering their username/password, and completing some form of multi-factor authentication.
In addition to saving you time during the data entry process, utilizing account aggregation also provides a number of other benefits for you and your clients:
Clients that have been invited to access their RightCapital plan can link their accounts remotely from the client side, streamlining the data collection process and making it easy to virtually onboard new clients and prospects.
Account balances and position data will refresh automatically on a regular basis, eliminating the need to manually update account information. This helps keep everything up to date with minimal effort on your behalf.
The Budget module will pull in transactions from linked bank accounts and credit cards, allowing your clients to set budget goals and monitor their spending within the RightCapital desktop and mobile applications.
After accounts have been linked, they will populate in the appropriate account category on the left side of page. You and your clients can utilize the Connections menu to view and manage all active account connections:
Account Aggregation Availability
Trial
Basic
Premium
Platinum
Want to upgrade to use account aggregation? Send us a note using the in-app chat feature (or shoot us an email at support@rightcapital.com) and we'll get you set up shortly!
Many advisor-level Integrations can be used to link a client's accounts directly to their RightCapital financial plan. This will automatically pull in current balances and position-level account data. Linking accounts via advisor-level integrations can be done by clicking the Link Account button in the upper right of the page, and choosing an integration from the dropdown menu:
RightCapital offers the capability to set up integrations with asset custodians, account aggregators, and other platforms that you may already utilize as a part of your tech stack. A full list of our integration partners can be found within the '...' More Menu > Integrations tab of the Advisor Portal.
Within this area, you can either scroll through the list or use the search bar in the upper left to find a specific integration. For each integration you will find step-by-step instructions for the initial setup, as well as a dedicated help center article with more details on how to link client accounts:
After accounts have been linked, they will populate in the appropriate account category on the left side of the page. Account balances and position data will refresh automatically on a regular basis, keeping everything up to date within the plan.
In addition to cutting down on the time spent entering and updating account information, integrations are also the most stable way to link accounts in RightCapital. If and when it's possible, we recommend utilizing advisor-level integrations to link client accounts!
Any type of asset or liability can also be added manually to the Net Worth section by clicking the Add Account button in the upper right. Please note that only bank accounts, credit cards, investments, and loans are able to be linked. Stock plans, properties, insurance policies, and other assets must be added manually via this method:
Below you will find an overview of each account type, outlining the data entry process from start to finish. Remember that if you ever have any questions while entering client data, you can always reach out to the RightCapital Support Team for assistance!
To manually add a bank account to a client's Net Worth section, click Add Account > Bank:
Bank account entries are quick and straightforward. Enter the Account name, choose the Account Type and Owner, and then enter the current Balance. After being added, bank accounts will populate within the Bank section on the left side of the page.
Learn more about Cash Management options
Bank accounts will make up the "cash reserve" portion of the client's taxable account bucket, and will grow based on your asset return assumption for cash. To learn more about cash management options, click here.
To manually add a credit card to a client's Net Worth section, click Add Account > Card:
In addition to the Account name, Balance, and Owner, credit card entries will also ask for Monthly and Minimum payment amounts and an Annual Percentage Rate (APR). After being added, credit cards will populate within the Card section on the left side of the page.
Although credit cards must be linked in order to feed transactions into the Budget module, manually adding credit cards can be useful in cases where you want to model the balance being paid off within a client's plan. Please note that manually added credit cards will not reflect the client maintaining a balance.
To manually add an investment account to a client's Net Worth section, click Add Account > Investment:
Investments in RightCapital encompass a wide swathe of account types, such as taxable accounts, 401(k)s, IRAs, and more. A full list of options can be found within the Account type dropdown menu. Different account types will require different information, but you’ll always be asked for the Account name and Owner.
There are two different Entry Method options for manually added investment accounts: Enter total balance, and Enter holdings / asset class. The data entry process will vary depending on the option you select here:
This option is quick and easy, allowing you to simply enter the Total balance of the account. You may also be asked for a Cost basis, depending on the account type.
The final step is to determine the Asset allocation for the account. You can either allocate the accounts manually using the Customized option, or you can use a Model Portfolio. More details can be found in the Asset Allocation section of this article.
Don't forget to allocate your investments!
By default, manually added investment accounts will have an allocation of 100% Other. This can skew a client's overall Current Allocation. Be mindful not to forget about allocating manually added investment accounts!
This option offers more granularity, allowing you to add specific holdings and asset classes to an account.
To add a holding, click the Add Holding button in the lower right. Once the holding has been added, specify the Ticker symbol and Quantity (you may also be asked for a Cost basis, depending on the account type). Click Save to finish adding the holding.
RightCapital partners with Morningstar for accurate, up-to-date holding data. After entering the ticker symbol, the Price and Allocation for that holding will automatically feed into RightCapital from Morningstar. The Value of the holding will be calculated and will contribute to the Total balance of the account.
In addition to specific holdings, you can also add general asset classes to the account by clicking the Add Asset Class button. Choose an asset class from the dropdown menu here, and then specify the Value. This option is helpful in cases where you may not have the full account details, or if certain holdings in an account are not in Morningstar's database.
When using this entry method, it is not necessary to manually allocate the account as the allocation for each holding will automatically pull in from Morningstar. However, you can always choose to override the Morningstar allocation if you'd like by customizing the allocation, or choosing a model portfolio. More on this below.
Regardless of whether investments have been linked or added manually, you are always in full control of the asset allocation. The allocation for each account will have a direct impact on the rate of return and standard deviation of the client's overall Current Allocation, making this a crucial step of the data entry process.
When adding an investment account, click the button under Asset allocation to open a new drawer on the right of your screen. Here, there are three ways to allocate investments in RightCapital:
Based on holdings / asset class: The Asset allocation will be determined automatically, based on the specific holdings and asset classes in the account. This is the default option for linked accounts, as well as for manual accounts with the Enter Holdings / Asset Class entry method selected:
This option is not available for manual accounts with the Enter Total Balance entry method selected.
Based on model portfolio: This quick and easy option allows you to choose from a list of available model portfolios. The asset allocation for the account will be set to the asset allocation of the selected portfolio.
RightCapital includes seven default model portfolios. Custom model portfolios can be added in the Models > Portfolios tab of the advisor portal, or even imported via certain integrations like Nitrogen.
To read more about Model Portfolios in RightCapital, click here.
Customized: This option allows you to specify the asset allocation by entering custom percentages for each asset class. When using this option, the total must equal 100% in order to save the allocation:
View allocation details in the Investment module!
After entering and allocating all of a client's accounts in the Net Worth section, the Investment > Asset Allocation module is the best place to view allocation details:
To manually add a stock plan to a client's Net Worth section, click Add Account > Stock Plan:
Adding a stock plan to a client's Net Worth tab allows you to account for the value of both past and future grants. Grant types include Incentive stock options (ISO), Non-qualified stock options (NQO), Restricted stock units (RSU), and Restricted stock (RS).
Due to their complexity, there are several resources dedicated to entering stock plans into RightCapital:
A full list of data entry inputs and descriptions for stock plans can be found here.
A detailed overview of the necessary components of stock plans, such as grant types and taxation details, can be found here.
An overview of creating and applying custom vesting schedules can be found here.
To manually add a loan to a client's Net Worth section, click Add Account > Loan:
Available loan types include mortgages, car loans, student loans, and more. Use the Loan type dropdown menu to view the full list of options. Different loan types will require different information, but you’ll always be asked for the Loan name, Owner, Balance, and Interest Rate.
For more information on how to enter specific loans, please see our dedicated article on Loan Details.
A property entry for the Primary Home will be prepopulated within every client plan. Click Property on the left side of the page, and then click the Primary Home tile to update the information:
Indicate whether the primary home is rented or owned using the Rent/Own drop-down menu. For clients who are renting, you will only need to enter the Monthly rent and Annual insurance. For clients who own their primary home, you will be asked to enter additional information. A full list of data entry inputs and descriptions for the Primary Home can be found here.
Please note that the entry for the Primary Home cannot be deleted. In select cases where clients neither own a home nor pay any rent, set the primary home to Rent with $0 Monthly rent and $0 Annual insurance to remove the primary home from the retirement projections.
To manually add additional properties to a client's Net Worth section, click Add Account, hover over Property, and choose from the list of available options:
Options include Investment Property,Vacation Home, and Land. Land is treated similarly to an investment property, with the distinction that it does not allow for depreciation. A full list of data entry inputs and descriptions for Vacation and Investment properties can be found here.
To add an insurance policy to a client's Net Worth section, click Add Account, hover over Insurance, and choose from the list of available options:
Options include Life, Disability, Long Term Care, Homeowner, Auto, and Umbrella insurance policies. The data entry process will vary depending on the type of policy that you select.
For more information on how to enter specific insurance policies, please see our dedicated article on Entering Insurance Policies.
To add Other Assets to a client's Net Worth section, click Add Account > Other:
There are several options available within the Asset type menu which can be used to reflect the following:
Lifestyle - Use this to include the current value of various tangible assets in the client's Net Worth, such as a car, a boat, or jewelry.
Note receivable - If clients have loaned money and are receiving payments, use the Note Receivable option to reflect income received from those payments.
Businesses - Input information about various types of businesses - LLC, Partnership, S Corp, or C Corp. Click here for more details on entering businesses in RightCapital.
The data entry fields will change depending on your chosen asset type, but you will always be asked for the Asset name, the Owner, and the Current Value / Balance.
Pro-Tip: Cryptocurrency
Lifestyle assets can be used to model cryptocurrency within client plans, allowing you to specify details like the current value, expected growth rate, cost basis, and year/cost of sale.
The Included in plan option allows you to choose whether specific assets and liabilities will be included in a client's retirement projections:
This will be set to Yes by default for all Net Worth entries, meaning the asset/liability will be included in the client's current Net Worth, Balance Sheet, and future-looking Retirement projections. Selecting No will exclude the entry from all aspects of the financial plan.
If an account is set to Balance sheet only, it will display as part of the Net Worth and be included in the Balance Sheet, but will NOT be included in any of the Retirement projections or calculations within the financial plan.
Investment accounts will provide you with a "Managed" checkbox to indicate whether or not that specific asset is under your management:
This box will be checked by default for all investment entries. This checkbox has no impact on the plan itself, but investments that are managed will be included in the overall "Managed Asset Percentage" widget displayed within the RightIntel Dashboard:
Assets that are not under management will be considered "Held Away". Assets Held Away can be viewed within the Opportunities tab.
Contact Us
For additional assistance within RightCapital please contact our Support team.
Educational Webinars
RightCapital is committed to enabling your success. Each week, we cover essential planning modules and product updates.
RightCapital in Action
Check out our YouTube channel where we highlight Advisor Success Stories and share more Tips & Tricks!
