Additional Savings: Allocating a client's excess cash

How can I allocate excess cash flow to goals?

  • First, check your client settings to see if you have selected spend or save.
  • If you have selected "Spend", any positive net cash flows left over in any given year will disappear from the plan, under the assumption that the client spent the money.
  • If you have selected "Save", those positive net cash flows will be saved to be used towards the client's goals. Unless otherwise specified, the excess funds saved will accrue in a cash balance account and earn the cash rate of return.
  • To have these funds earmarked towards a goal and the goal's proposed Asset Allocation rate of return instead of a general cash balance account, navigate to the Additional Savings What If and set the amount of savings you want to put toward the goal.
  • If your plan has multiple goals and you want to put all of the excess cash flow toward 1 goal use the "Allocate excess cashflow to this goal" check box.
  • Be sure to save your changes by clicking "Apply To Plan"