The Current Accounts screen allows you to choose the accounts you will use to fund the plan. You can either create a generic account, or select one or more of the client’s accounts.
Note: While client accounts may have been identified as either Taxable or Non-Taxable, generic accounts are always considered to be Taxable. In this illustration, client accounts will be added.
To add a client account, do the following:
To select the client's account(s); in the lower half of the screen, click Add Account. The Add Accounts to Plan dialog opens.
Click on the name of the account(s) you want to add and click Add. The account name(s) appear(s) in the Selected Records box. Click OK.
To alter the values of securities in the account or exclude holdings from the account, click Adjust Plan Values.
Or, to create a new account from the Add Accounts to Plan dialog box, click New.
To add a generic account, click Add Account...Generic Account. The Generic Account dialog opens.
In the Account Name box, type a name for this account.
In the Initial Balance ($) box, enter the beginning balance of the account.
In the Annual Contribution ($) box, enter the amount you plan to contribute annually to the account.
In the Start year box, enter the first year of annual contributions. System defaults to current year.
In the End year box, enter the last year of annual contributions.
In the Edit Asset Allocation area, edit the allocation breakdown of this account. The default allocation is 0.
Click OK. You are returned to the Current Account screen.
Click Next to continue.
When the software analyzes the client’s portfolios to determine asset allocation, it occasionally encounters holdings that are unclassified. For use in the investment planning area only, these unclassified holdings are divided proportionately between asset classes according to the weights of the classified holdings. For example, if the portfolio is 60% US Large Cap Growth, 30% US Taxable Long Term Bonds, and 10% Unclassified. The 10% unclassified holdings will be divided between US Large Cap Growth and US Taxable Long Term Bonds in a 60:30 ratio, resulting in a final allocation of approximately 67% US Large Cap Growth and 33% US Taxable Long Term Bonds.
Some holdings may also be “partially” classified. In this case, the holdings are divided only between the relevant asset classes. They are divided proportionately by market value. For example, some holdings may be categorized as “Unclassified U.S. General Equity”. Such holdings will be divided into the US equity asset classes as:
35% US Large Cap Growth
35% US Large Cap Value
10% US Mid Cap Growth
10% US Mid Cap Value
5% US Small Cap Growth
5% US Small Cap Value
When the total amount of unclassified or partially classified holdings exceeds 10% of the total amount of the combined accounts selected for a plan, a warning message will be displayed.