Guru's Verification engine ensures consistency, confidence, and trust in the knowledge your organization shares. Learn more.

Assets - Assets

Assets Table

The top of the Assets tab will provide a table of all the assets and property modeled in the scenario. There are a number of buttons to the left of the table to manipulate the assets. Click in the headers to sort the asset table based on the column (ie click the Description header to sort the assets alphabetically by their entered Description).

Buttons

These buttons located to the left of the assets table are used to manipulate the clients' assets in many ways.

Add: Creates a new asset to model from scratch.

Copy: Copies the selected asset. To select an asset, single click it in the table.

Delete: Removes the selected asset from the plan. You will be asked to confirm. After confirmation the deletion cannot be undone. Assets deleted by accident must be recreated.

Stock Prices: In Moneytree Plan, Equity/Other and Retirement Plan assets can be assigned stock symbols. Use this button to update assets with assigned stock symbols with the current stock price based on the Alpha Vantage API. This works for both stocks and mutual funds with valid symbols.

NOTE: For the stock price updater to function, an asset must be assigned a stock symbol in its details, and the asset must have its value entered on a "per share" basis. The stock symbol must be entered correctly. Moneytree Plan will not recognize a stock symbol if it is only written in the Description field.

Asset Classes: Clicking this button will bring up a new window. In it you can review the asset classes used in this scenario, add new classes, modify existing ones, and bring in classes from the defaults modeled in the Asset Classes section of Settings. Asset class table information:

Buttons: Use these buttons to make changes to the asset classes used in the scenario.
- Add: Creates a new blank asset class that will appear at the bottom of the table.
- Delete: Removes the selected asset class.
- Move Up: Moves the selected asset class up one space in the table each time it is clicked.
- Move Down: Moves the selected asset class down one space in the table each time it is clicked.
- Hide/Show Defaults: The text differs depending whether the defaults are show. Click Show Defaults will get the default asset classes modeled in Settings to appear so you can compare the defaults to the clients' current asset classes. With the defaults showing, there are 3 important options:
  - Add [default asset class] to this scenario: Adds the selected scenario to the clients' scenario. The text of the button changes depending on the asset class selected.
  - Replace [scenario asset class] with [default asset class] in this scenario: Replaces an asset selected from the top table with one of the default asset classes selected in the lower table.
  - Update All Matching Asset Class Rates in this Scenario: Moneytree Plan will find any asset classes where both the Name and Abbreviation information matches. Any of the asset classes from the top table will be updated with the rate information from matching asset classes in the bottom table.
Table: The table summarizes all the asset classes and rates of return used for each class. Click in the cells to modify the information for a class (ie click in the Name cell for a class to changes its name).
- Name: Asset class name.
- Abbreviation: The abbreviated name for the asset class.
- Interest %: The typical ordinary income bearing interest rate for assets in the class. If the box "Auto-Fill these Rates of Return when Entering Assets" is checked in the Asset Classes section of Settings, this rate will be applied to an asset when assigned the class.
- Dividend %: The typical qualified dividend return for assets in the class. If elected, this rate will be automatically applied to an asset when assigned the class.
- Capital Gain %: The typical annually realized capital gains return for assets in the class. If elected, this rate will be automatically applied to an asset when assigned the class.
- Appreciation %: The typical appreciation that will be taxed upon the withdrawal/sale of assets in the class. If elected, this rate will be automatically applied to an asset when assigned the class.

Summary: Click this button to see a summary the assets based on their assigned group. It includes information for the following:

Group: Matches the options available in the asset entry details from the Group drop-down. Certain groups, like personal property, are consolidated together.
% for Retirement: The percentage of assets with a corresponding group that have been marked "Available for Withdrawal". The option is not available for property assets since the program will never assume they can be liquidated at-will like savings and brokerage accounts. Conversely, the option is not available for retirement account because there are instances where withdrawals are required, like RMDs.
Ownership: There are a number of columns splitting up the total value of assets in a group owned by a certain party. Ownership is assigned in assets' details. The bottom of this column will provide the total of all assets owned by the given party.
Pers Adds: Summarizes the total personal additions to assets in a given group. The bottom of this column shows the total personal additions made across all assets. These values do not include additions as a percent of salary.
Co Adds: Summarizes the total company additions to assets in a given group. The bottom of this column will show the total of all company additions across all assets. These values do not include additions as a percent of salary.
% Return: Provides the weighted average rate of return of all assets in a given group.

Assets Inputs

Select an asset from the table, click the Add button, or click the Copy button to access the detailed inputs for an asset. Use these fields to define the taxation status, value, contributions and other information assets. Personal property assets will have limited inputs. They cannot be withdrawn from, sold, or contributed to. Certain other assets, like residences and rental real estate, will have specialized inputs.

Choose from the following to read more about special assets:

Information for regular assets is split across 5 areas: Description, Value, Rate of Return, Pre-Retirement Additions, and Future Changes.

Description

In the Description enter basic information to identify the asset, define its taxation, choose the owner, etc.

Name: Enter identifying information to describe the asset. This will be used for the Asset details report and appear in the Description column of the table. It is best to enter a unique name for every asset.

Group: Use the menu to choose which of the options best describes the asset (ie, stock, mutual fund, bond, savings account, etc.). A few of the special asset options . The groups fall into a handful of broad categories:

Ordinary Asset: These make up most of the options. These allow for the modeling of additions and withdrawals.
Personal Property: Any option that includes "Personal" in its description qualifies as a personal property asset. Withdrawals and contributions cannot be modeled. These assets are used for net worth purposes only.
Residence: With this option, model currently residences, their sales, and replacement. Residence assets that are not explicitly sold are used for net worth purposes only.
Rental Real Estate: Model rental or other non-residential properties owned by the clients. Enter incomes, expenses, mortgages, adjusted cost basis, sale information, and more for up to 12 non-primary residential properties.
Stock Options / RSUs: Enter company stock options owned by the clients. Use the inputs to model both incentive and non-qualified stock options. Restricted stock units can also be modeled by entering them as non-qualified stock options and leaving the strike price at $0.

NOTE: Beyond the main categories, the specific option does not affect the asset returns or projections results (ie, there is no difference in behavior between the "Savings Account" and "Mutual Funds (Balanced)" options). When electing to model assets broadly, such as having one 401k asset to represent the whole account, it is recommended to choose the option that best represents the account. There is an exception with "Bonds (Municipal)". That option has a checkbox to choose whether or not the growth will be reported as an AMT preference income.

Type: Choose the asset type. This affects the taxation and the return used on the asset. Moneytree Plan groups assets together by tax status for withdrawal purposes. Because of this, all "Taxable" or all "Equity/Other" assets are grouped together accordingly. The Type options are:

Taxable: Ordinary interest bearing accounts only, such as savings accounts. Growth is taxed annually as ordinary income.
Equity/Other: Assets whose growth can taxed as interest, dividends or capital gains, such as brokerage accounts. Equity/Other type assets will have options to enter different returns between interest, dividends, capital gains, and appreciation.
Tax-Free: Non-Roth assets with tax free growth, like municipal bonds.
Tax-Deferred: Assets with an after-tax cost basis and growth taxable as ordinary income. When withdrawing from tax-deferred assets, Moneytree Plan will always take from the taxable growth first and leave the cost basis alone as long as possible.
Retirement Plan: Qualified retirement plans for the clients. Unlike other assets, there is no option to elect whether or not retirement accounts are available for withdrawal. When this option is chosen, another menu will appear to specify what type of retirement plan. There are several options, which fall into broad categories:
- Employer Sponsored Traditional Retirement Plans: These include 401k, 457, TSA/403b, etc. Personal and company additions are pre-tax. Personal additions will appear as tax-deductions on tax reports. Any withdrawals will be entirely subject to ordinary income taxes. RMDs will begin automatically the year the owner turns 72. Early withdrawals may be subject to a 10% penalty tax. This can be turned on or off in the Other tab of Assumptions.
- Employer Sponsored Roth Accounts: Roth 401k and Roth 457 assets allow for both company and personal additions. Company additions are pre-tax and go into the general tax-deferred retirement account pool along with employer sponsored traditional accounts and IRAs. Personal additions are made after tax, so there tax-deductions reported for contributions. Neither the growth nor the cost basis will be subject to taxes from withdrawals. Employer Roth accounts are subject to RMDs by 72. To avoid RMDs, model the account as a Roth IRA for personal additions. Enter company additions into an employer sponsored tax-deferred retirement account. Moneytree Plan does not keep track of the cost basis on Roth accounts, so any early withdrawals are assumed to be covered by the cost basis to avoid the 10% penalty.
- IRA: Personally owned tax-deferred retirement accounts. Company additions cannot be entered. Personal additions are pre-tax. They will appear as tax-deductions on tax reports. Any withdrawals will be entirely subject to ordinary income taxes. RMDs will begin automatically the year the owner turns 72. Early withdrawals may be subject to a 10% penalty tax. This can be turned on or off in the Other tab of Assumptions.
- Roth IRA: Personally owned tax-free Roth accounts. Company additions cannot be entered. Personal additions are after-tax, so they will not be reported as tax-deductions. Neither the cost basis nor the growth will be subject to taxes. Moneytree Plan does not keep track of the cost basis on Roth accounts, so any withdrawals are assumed to be covered by the cost basis to avoid the 10% penalty tax. Roth IRAs are not subject to RMDs.
- Inherited IRA: IRAs inherited by a selected client after the original owner passes away. There are options to choose whether it is a Roth or a traditional IRA. There are also various other options to determine how and when withdrawals must be made.
- Health Savings Account: These accounts are tailored to help individuals pay for medical expenses. Health Savings Accounts (HSAs) allow for both personal and company additions. Those additions are pre-tax. Personal additions will appear as tax deductions on tax reports. Medical expenses qualify for tax-free withdrawals (so clients may not pay taxes for money going into or out of the HSA). The accounts are not subject to RMDs. Withdrawals for non-medical expenses are taxed entirely as ordinary income. If withdrawals are made prior to age 65 for non-medical expenses, they may be subject to an additional 20% tax penalty. This can be turned on or off in the Other tab of Assumptions. All scheduled withdrawals through Future Changes are assumed to be for qualifying medical expenses. As a result all scheduled withdrawals will be tax free.

Owner: Select the owner of the asset. The owner can affect the Net Worth and Estate reports. If an asset is owned by a party beyond either individual, such as a child, then it will not be reported for Net Worth or Estate taxes. Regardless of ownership, assets that are available for withdrawal will always appear on the retirement projection.

Available for Withdrawal: Keep this box checked if the client intends to use the asset for general spending, especially during retirement. This option is not available for Retirement Plan assets. If this box is unchecked, the asset will get the same treatment as personal property. It will be used for Net Worth, but it will not appear for retirement projections, and withdrawals and additions cannot be modeled. This option is commonly used for annuities with guaranteed income riders.

Project the Retirement Plan Separately: This option is only available for Retirement Plan assets. If checked, the asset will get its own dedicated report page away from the pool of other similar retirement plans owned by the same individual. This is useful when wanting to track the balance, growth, and depletion of a specific retirement plan away from the others. It's best used when there are multiple retirement plans with the same tax treatment owned by the same individual.

Account: Use this optional menu to assign the asset to an account. The account information does not appear anywhere on reports and is used solely for organizational purposes. Choose the "(Create New Account)" to create an account from this screen. The information from this option will be reflected in the Accounts tab of the Assets section.

Class: The selected class will be used to calculate the clients' current asset allocation for Asset Allocation reports. The Asset Allocation reports will compare the clients' current allocation to their suggested allocation and provide recommended motions to balance their portfolio. If the box to automatically enter rates is checked in the Asset Allocation section of Settings, then the rate of return information for selected option from this menu will be applied to the Rate of Return field. Click the Asset Classes button to review the rates of return used for classes in the scenario. A custom rate of return can still be entered in place of the asset class's return. The clients' calculated allocation can be reviewed in the Allocation tab of the Assets section. This field is marked as optional because asset class information is ultimately only used on a small subset of reports dedicated the clients' current allocation. The class is not viewed specifically for the retirement projections.

Beneficiary: Choose a beneficiary for record keeping purposes and estate purposes. This does not affect the projections. No matter who the beneficiary is, the the retirement projection assumes the asset will be available to the spouse once the owner passes away.

Stock Symbol: This option is only available for Equity/Other and Retirement Plan assets. Click the "Tie to Stock Symbol" button to enter a stock symbol for the asset, or to remove an existing symbol. If the Value section shows the value entered on a "Per Share" basis then the share value will be applied automatically for the asset as soon as the symbol is tied. Stock prices for all assets can be updated at once by clicking the Stock Prices button to the left of the Assets Table. Moneytree Plan will accept both stock and mutual fund symbols.

Value

Use this field to enter the value and cost basis of the asset. For Equity/Other and Retirement Plan assets values can be entered either as a total value, or on a per share basis. All other ordinary assets are entered as a total value.

When entering as a total value there are just 2 fields: Total Value and Cost Basis. When entering on a per share basis, the Total Value is calculated based on the Number of Shares and the Dollar Per Share.

Total Value: Total current value of the asset. Calculated by multiplying the # of Shares by the $ Per Share when entering asset information on a per share basis for Equity/Other or Retirement Plan assets.
# of Shares: Number of shares the client(s) currently own of the asset. This fields are only available for Equity/Other or Retirement Plan assets when entering the asset values on a per share basis.
$ Per Share: Current value of a single share of the asset. This fields are only available for Equity/Other or Retirement Plan assets when entering the asset values on a per share basis.
Cost Basis: Cost basis for the asset. For Taxable, Tax-Free, Retirement Plan, and Personal Property assets the cost basis is for record keeping purposes only. For Equity/Other, Tax-Deferred, and Residence assets the cost basis will not be subject to taxes upon withdrawal or sale. Read more about Rental Real Estate or Stock Options / RSUs.

Rate of Return

Moneytree Plan has many ways to enter rates of return between Default Rates, rates here at the asset level, and Rate Changes. Read more about Rates of Return in Moneytree Plan.

At the asset level, use the Rate of Return field to enter the expected average annual yield from the selected asset, if desired. If all assets with the same type are all 0%, Moneytree Plan will use the defaults entered in the Default Rates tab of the Assumptions section. Once the rate of return is entered for a single asset, the program will begin calculating the weighted average rate of return for all assets with the same type. Any asset of the same type with a rate of return of 0% will be treated as if it has a 0% return.

For example, consider a client with two Equity/Other assets and one Taxable asset. If the rate of return is specified for one Equity/Other asset and none of the others, then Moneytree Plan will calculate the weighted average rate of return for all Equity/Other assets based on the specified rate for one and assume 0% for the other (the default rate when none is specified). However, for the Taxable asset Moneytree Plan will still use the Default Rate from Assumptions.

For most assets there is a single Rate of Return field to represent the total expected annual yield. For assets with the Type of Equity/Other the return can be divided across four categories:

Interest: Ordinary income bearing interest. The returns from this field will be taxed annually as ordinary income.
Dividends: Specifically, qualified dividends. Returns based on this field will be taxed annually at the preferential capital gains tax rate. Returns from non-qualified dividends should be included as part of the Interest field.
Capital Gains: Annually realized capital gains taxed at the capital gains tax rate. This can be useful to approximate the typical capital gains income reported from typical annual trading as portfolios are rebalanced.
Appreciation: Growth that results in taxes as withdrawals are made. Moneytree Plan's Prosper reports will appreciate an asset to accrue a balance of untaxed growth. Only during withdrawal periods the untaxed growth will be taxed. Aspire reports assume the returns are annually realized and taxed annually. For Aspire reports, this means there is no difference between Appreciation, Capital Gains, or Dividends for tax purposes. Read more about Aspire vs. Prosper.

With Equity/Other assets the general Rate of Return field will be disabled. It will be populated with the sum of all 4 fields to represent the total expected yield from Equity/Other assets. If no rates are entered for any Equity/Other assets then the rate from Default Rates will be used. That rate will be divided evenly across all four categories. For instance, if the default rate is 8% for Equity/Other assets, then the program will use 2% for interest, 2% for dividends, 2% for capital gains, and 2% for appreciation for a total return of 8%.

Pre-Retirement Additions

In this section model the monthly additions clients are making to a specified asset. For most assets, only personal monthly additions can be entered. For employer sponsored retirement accounts, both personal and monthly additions can be entered. Additionally, personal and company additions can be entered as either a dollar amount or a percent of salary.

When Moneytree Plan pools assets of the same type together, it either uses the default rates on the pool, or calculates a weighted average rate of return from the entered rates of return. The overall rate of return will remain constant throughout the projection. This means that additions to one asset will not result in the rate of return changing over time. Ultimately, additions to one asset would produce the same result if those additions were modeled to any other asset of the same type that is available for withdrawal. For example, if one Taxable asset grows at 4% and another grows at 2% and additions are only going into the asset growing at 4%, then the rate of return will not increase overtime as additions are made to the higher yield asset. Moneytree Plan above all seeks to maintain a consistent return on the clients' portfolio on the assumption that clients' will typically seek to maintain some balance. To effectively model changes to returns over time, it is best to go to the Rate Changes tab.

Depending on the type of asset, additions can be modeled several ways:

Personal Monthly Dollar Amount: Enter the additions made into the asset by the client each month as a dollar amount. This field is available for all ordinary assets. Personal additions will be reported as expenses for cash flow purposes.
Personal Percent of Salary: If a client is contributing a percentage of their salary to a retirement account, it can be modeled here. This field is only available for employer sponsored retirement accounts, such as 401ks. The percentage will always be based off of the clients' Salary and Wages from the Earned Income tab of the Income section, never from their Self Employment earnings. Personal additions will be reported as expenses for cash flow purposes.
Company Monthly Dollar Amount: Enter the additions made into the asset by the client's employer each month as a dollar amount. This field is only available for employer sponsored retirement accounts. Since the additions are coming from the company, they will not be reported on the cash flow.
Company Percent of Salary: If a client's employer is contributing a match as a percentage of the client's salary, it can be modeled here. This field is only available for employer sponsored retirement accounts, such as 401ks. The percentage will always be based off of the clients' Salary and Wages from the Earned Income tab of the Income section, never from their Self Employment earnings. Since the additions are coming from the company, they will not be reported on the cash flow.
Increase Rate: Enter the rate that additions will increase annually. This only affects the monthly dollar amount fields, not the percent of salary fields.

NOTE: Moneytree Plan does not cap additions to retirement assets modeled in this section. Be careful not to model additions beyond the legal limit. When entering the additions, the program will combine the monthly dollar amounts and the percent of salary, so the additions typically only need to be entered for one of the fields. Use the Ret. Plan Additions tab if you wish to select a retirement plan that the clients are maximizing additions to.

Future Changes

Future Changes sections are available in many input areas in Moneytree Plan. They give greater control over the timing of events. For assets, they allow users to either change the additions at a specified date, or to schedule withdrawals. When Future Change entry is created, the behavior will start at the specified age and continue for the entire projection. It is not uncommon to create a second entry for a "stop age" - the client's age when an event will stop.

To schedule a withdrawal from an asset:

Expand Future Changes.
Click the Add New Entry button.
Enter the age the withdrawal takes place based on the asset owner's age.
Enter the withdrawal amount as a negative monthly dollar amount.
If the withdrawal ends at a certain point, click the Add New Entry button again.
Enter the age the withdrawal will end and the monthly dollar amount of $0 (or back to the original contribution amount).
If returning to the original contribution amount, click the Add New Entry button a third time.
Enter the age additions will truly stop, then enter a monthly dollar amount of $0.

If Future Changes shows a monthly dollar amount of $0, the program will still withdrawal from the asset for shortages. The entry only ensures that the clients are no longer scheduling their own withdrawals or adding to the asset.

You must have Author or Collection Owner permission to create Guru Cards. Contact your team's Guru admins to use this template.