Settings - Asset Classes

Use this section of Settings to add, remove, and modify the default asset classes. The information reflected here will be used for all new clients and new scenarios. Changes will not impact any scenarios existing prior to the change. Learn how to make scenario asset classes match defaults.

Use the buttons to the left of the table to add, remove, or change the position of asset classes in the table.

See also: Asset Class Allocation

Table

The table shows all existing default asset classes. Simply click in a cell to edit the contents.

Name: Select this cell to change the full name for a desired asset class.

Abbrev.: Enter an abbreviated name for the asset class in this cell. Ideally abbreviations should be as brief as possible, while still being easily understood by clients.

Rates of Return

If the box Auto-Fill these Rates of Return when Entering Assets is checked, the Int. Rate, Div. Rate, Cap. Gain, and Appr. Rate entered will be automatically applied to a Equity/Other type assets as an asset class is assigned. For all other asset types (Taxable, Retirement Plan, etc.), the program will simply show the Total Return. This is because only Equity/Other type assets must consider various types of returns for tax purposes. Learn more about Type options.

Int. Rate: This is the ordinary income bearing interest typically reported annually by assets in this class. Use this for ordinary interest, non-qualified dividends, or any other annually reported returns that must be taxed as ordinary income.

Div. Rate: Use this to model the typical qualified dividend yield for the selected class.

Cap. Gain: This is the typical annually reported long-term capital gains for assets in this class, such as typical capital gain returns from the transactions within Mutual Funds/ETFs to maintain their balance.

Appr. Rate: Enter the standard appreciation of assets in the selected class. Appreciated gains are only taxed on withdrawal.

Total Return: This is equal to the sum of all other returns.

The four return categories only apply to Equity/Other Type assets. For all other types of assets, it is assumed that growth is not taxable, or taxed in a specific way so only a general "Rate of Return" is shown. Learn more about Type options.

Auto-Fill these Rates of Return when Entering Assets

Check this box to have the rate of return for assets automatically populated as asset classes are assigned. This option actually will actually be reflected in all existing clients and scenarios.

Although checking this box will not automatically apply asset class rates of return in all existing scenarios, changing asset classes in existing scenarios after this box is checked will make it so the asset class rates of return in that scenario automatically populate into the rate of return field(s) for the asset.

Conversely, if this box is unchecked then changing the asset class for an asset will not change the rate of return. This applies to existing scenarios and clients and scenarios created after unchecking the box.