Product Overview of RightCapital
RightCapital is a comprehensive financial planning software designed to assist financial advisors and their networks in creating and managing detailed financial strategies for their clients. Here are the key aspects of what the product does and its main features:
Purpose and Deployment
RightCapital is a cloud-based financial planning tool that can also be deployed on-premise through installations on iOS and Android devices. It is tailored to help advisors with budget planning, retirement planning, and other financial strategies.
Key Features
Financial Planning Modules
- Retirement Planning: RightCapital offers advanced retirement planning tools, including tax-sensitive retirement distribution planning. This feature helps in optimizing withdrawal strategies across different account types (taxable, tax-deferred, and Roth) and illustrates the dollar value of converting to a Roth IRA.
- Social Security Optimization: The software includes advanced Social Security optimization, such as government pension offset and windfall elimination provision calculations.
- Medicare Planning: RightCapital provides Medicare planning and premium calculation tools to help advisors plan for clients’ healthcare costs.
Budgeting and Account Management
- Budgeting: The software enables detailed budgeting and spending tracking by allowing clients to link their bank accounts, credit cards, and investment accounts. This feature facilitates a comprehensive view of clients’ financial affairs through account aggregation.
- Student Loan Planning: RightCapital is unique in offering in-depth student loan planning capabilities, which is beneficial for both younger clients with student loan debt and older clients concerned about their children’s debt.
Risk Assessment
- RightRisk™: A fully integrated risk assessment module that allows advisors and clients to view, compare, and analyze risk tolerance scores. This module includes customizable questionnaires, visual risk-return analysis, and household risk summaries.
Client Engagement and Collaboration
- Client Portal: The client portal provides clients with the same visibility as advisors, with customizable access levels (read-only, adjust but no save, or adjust and save). Clients can save scenarios without overwriting existing assumptions and access a document vault for storage.
- Task Management: RightCapital includes a task manager that allows advisors to assign and track client tasks with automated reminder emails, enhancing post-meeting engagement and client communication.
Reporting and Analytics
- Cash Flow Reporting: The software provides detailed cash flow reporting that itemizes all components of the financial plan, such as college debt, social security, withdrawals, and insurance payments.
- Asset Allocation: RightCapital offers an asset allocation module that compares different asset allocation changes and their impact on the client’s plan. Advisors can use pre-populated assumptions or customize their own capital market assumptions.
Technology and Integration
- Calculation Engine: RightCapital is known for its fast calculation engine, built on newer technology, which enables quick and accurate financial planning calculations.
- API Integration: The software offers APIs for integration with major brokerage and advisory firms, allowing these firms to incorporate RightCapital into their own dashboards and client-facing systems.
Pricing and Availability
RightCapital is available with a starting price of $124.95 per month, and it offers a free trial but no free version.
In summary, RightCapital is a robust financial planning tool that stands out with its tax-sensitive retirement distribution planning, comprehensive budgeting and account management, integrated risk assessment, and collaborative client engagement features. Its fast calculation engine and customizable modules make it a versatile and efficient solution for financial advisors.