Quick review of RightCapital

[student]

Like many others, I want use software to see whether I am on track to retire and to use what-if scenarios as well as other features such as Monte Carlo analysis, adjusting parameters, etc. I also would like this software to allow me to enter my portfolio to track its value over time. Empower has a free software that has some of these features. Fidelity has one based on eMoney but it is very stripped down. So, the next step is to consider paid software that I have seen. They are NewRetirement and ProjectionLab. Both have free versions. I eliminated NewRetirement because it does not do portfolio tracking, which is important to me. I have not tried ProjectionLab yet. The next step is to look at software that advisers use. I am aware of eMoney, RightCapital, and MoneyGuidePro. I have eMoney through PlanVision. Unfortunately, most of the fancy features are not on the client side. But it does have many useful reports and now there a goal tab for you to run Monte Carlo Simulation (after asking PlanVision to turn on the feature for me, since it is not on by default). I was able to get RightCapital via a one-time $299 fee that comes with some tutorials. I have used it for a couple of days. Below are my observations:

1) It has an aggregator that you can use to sync with your accounts, but I chose to enter my portfolio manually. An extra neat thing: They only ask for cost bases for investments in taxable accounts.

2) For an investment, you may assign a category. (I saw the option but have never tried it.)

3) When you check asset allocation, there are preset ways for you to check just the tax-free (I think it should be called tax-paid) accounts.

4) While I cannot adjust the default inflation rate, I can increase it via stress test. https://help.rightcapital.com/knowledge ... ssumptions says the default is 2.5%.

5) It bases its projection on your current asset allocation, and the return rate is based on the average of the last 50 years. Personally, I find this (8.2% for a 60/40 portfolio) too optimistic. It doesn't matter because one can replace it in what-if. For example, instead of the 60/40 that I currently have, I tried projections under balanced, conservative, and preservation. According to https://help.rightcapital.com/knowledge ... portfolios, they are 50/50, 35/65, and 20/80, respectively, and I can compute the corresponding annual rate using the info from https://help.rightcapital.com/knowledge ... portfolios. Once can also keep the 8.2% and decrease it in the stress test. Unfortunately, I am unable to test a projection based on a guide path. There is a guide path tab, but it is greyed out.

6) For what-if scenarios, you can change any of the parameters that you have input in your profile, such as age of retirement, spending, etc. Then it will give you Monte Carlo results of both the original plan and the adjusted one.

7) For withdrawal strategy, you can select inflation-adjusted or one of the other presets such as retirement smile, ceiling and floor, and guardrail.

8) There is a Roth conversion test to let you see the effects of filling out various tax brackets. This is one of the things that I like.

9) In terms of reports, it is nowhere near what eMoney offers.

In any case, I think I can do a lot of what I want using RightCapital. For the reports that I am not able to get, I will use eMoney.

To make this actionable, any suggestions on what I see it can do? If you have questions, feel free to ask.

Edit: Added extra info and 1 correction

Edit: Added info on the goal tab in eMoney.

[Lastrun]

Thanks for this. So after your promotional period, it will hit at around $175 a month? That is not shocking to me if it is good.

[student]

Thanks for this. So after your promotional period, it will hit at around $175 a month? That is not shocking to me if it is good.

No additional cost. I saw some advisors who post good videos on YouTube are offering a $199-$299 course on financial planning with videos and access to RightCapital. It is for lifetime access. Well, until RightCapital goes bankrupt or the advisor firm is no longer in business. To me the software is worth at least $50 a year. So as long as neither goes away within 6 years, I am getting my money worth. There are certain advisor assumptions that cannot be changed by me but that's not a big deal. My guess is the advisor pays enough to use RightCapital for many clients and they have access capacity. When I log on to RightCapital, it shows as if I were a regular client of the advisor firm. I guess in some sense, I am a client with limited access to the firm. Let me know if you need any info.

[CashFlo]

I think it's a powerful platform and easy to use.

It would be EXTREMELY beneficial to have a toggle on/off switch for each individual "Goals" so you could immediately see the impact with or without. This seems like a no-brainer feature.

[student]

I think it's a powerful platform and easy to use.

It would be EXTREMELY beneficial to have a toggle on/off switch for each individual "Goals" so you could immediately see the impact with or without. This seems like a no-brainer feature.

It does have this feature. Under the retirement tab, click action item and all the goals with sliders are there. So you can adjust them in the proposed plan. Then click refresh and you will see the new probability.

[Harmanic]

Well, until RightCapital goes bankrupt or the advisor firm is no longer in business.

Or RightCapital revokes the advisor's license due to violating the terms of use.

[student]

Well, until RightCapital goes bankrupt or the advisor firm is no longer in business.

Or RightCapital revokes the advisor's license due to violating the terms of use.

I am assuming that the advisor firm knows what they are doing. It does not seem to be a very small firm as it has 11 advisors and current only takes people with assets of 2 mil or above. Maybe technically we are "clients" since we paid for the tutorial. Another poster mentioned that another advisor on YouTube was giving access of RightCapital for free. viewtopic.php?p=7898763#p7898763 I vaguely remember another poster saying it was only for a portion of the software but I don't have a link to the post.

[Harmanic]

Well, until RightCapital goes bankrupt or the advisor firm is no longer in business.

Or RightCapital revokes the advisor's license due to violating the terms of use.

I am assuming that the advisor firm knows what they are doing. It does not seem to be a very small firm as it has 11 advisors and current only takes people with assets of 2 mil or above. Maybe technically we are "clients" since we paid for the tutorial. Another poster mentioned that another advisor on YouTube was giving access of RightCapital for free. viewtopic.php?p=7898763#p7898763 I vaguely remember another poster saying it was only for a portion of the software but I don't have a link to the post.

Maybe. Or maybe enforcement of the terms has been lax. I read the terms and found this statement which seems to prohibit the use as described above. It states:

LICENSE RESTRICTIONS
You agree not to (and not to allow any third party to):
use the Services other than for providing your services directly to End Users;
use the Services for any reason or manner, other than as permitted under the terms of this Agreement;
lease, license, sublicense, rent, distribute, sell, or resell the right to use or access the RightCapital Technology or any part thereof;

[student]

Well, until RightCapital goes bankrupt or the advisor firm is no longer in business.

Or RightCapital revokes the advisor's license due to violating the terms of use.

I am assuming that the advisor firm knows what they are doing. It does not seem to be a very small firm as it has 11 advisors and current only takes people with assets of 2 mil or above. Maybe technically we are "clients" since we paid for the tutorial. Another poster mentioned that another advisor on YouTube was giving access of RightCapital for free. viewtopic.php?p=7898763#p7898763 I vaguely remember another poster saying it was only for a portion of the software but I don't have a link to the post.

Maybe. Or maybe enforcement of the terms has been lax. I read the terms and found this statement which seems to prohibit the use as described above. It states:

LICENSE RESTRICTIONS
You agree not to (and not to allow any third party to):
use the Services other than for providing your services directly to End Users;
use the Services for any reason or manner, other than as permitted under the terms of this Agreement;
lease, license, sublicense, rent, distribute, sell, or resell the right to use or access the RightCapital Technology or any part thereof;

I guess the question is who are the end users. Certainly, they can do it for their regular clients. So what is the definition of a client. We paid for the tutorial, where the advisor shows us how to plan for retirement using the software. Can we not be considered a client? If there are selling access of the software only, then it is clear to me that it violates what you have posted. If they are selling the service of retirement planning via videos, then it seems that we can be considered as clients and this technically meets what you have posted. I guess RightCapital can disagree and they have to fight it out. I have printed the advisor's webpage and the FAQ stating that we have access until they or the software company goes out of business. If, for whatever reason, I can no longer access the software and advisor firm is still there, I will complain.

[Harmanic]

Well, until RightCapital goes bankrupt or the advisor firm is no longer in business.

Or RightCapital revokes the advisor's license due to violating the terms of use.

I am assuming that the advisor firm knows what they are doing. It does not seem to be a very small firm as it has 11 advisors and current only takes people with assets of 2 mil or above. Maybe technically we are "clients" since we paid for the tutorial. Another poster mentioned that another advisor on YouTube was giving access of RightCapital for free. viewtopic.php?p=7898763#p7898763 I vaguely remember another poster saying it was only for a portion of the software but I don't have a link to the post.

Maybe. Or maybe enforcement of the terms has been lax. I read the terms and found this statement which seems to prohibit the use as described above. It states:

LICENSE RESTRICTIONS
You agree not to (and not to allow any third party to):
use the Services other than for providing your services directly to End Users;
use the Services for any reason or manner, other than as permitted under the terms of this Agreement;
lease, license, sublicense, rent, distribute, sell, or resell the right to use or access the RightCapital Technology or any part thereof;

I guess the question is who are the end users. Certainly, they can do it for their regular clients. So what is the definition of a client. We paid for the tutorial, where the advisor shows us how to plan for retirement using the software. Can we not be considered a client? If there are selling access of the software only, then it is clear to me that it violates what you have posted. If they are selling the service of retirement planning via videos, then it seems that we can be considered as clients and this technically meets what you have posted. I guess RightCapital can disagree and they are fight it out. I have printed the advisor's webpage and the FAQ stating that we have access until they or the software company goes out of business. If, for whatever reason, I can no longer access the software and advisor firm is still there, I will complain.

It seems like a grey area. To me, it looks like they are selling access to the software and the "academy" is just a way to say you are a client. But they are not really directly advising you. On the surface, that seems like a violation of the terms.

[student]

Or RightCapital revokes the advisor's license due to violating the terms of use.

I am assuming that the advisor firm knows what they are doing. It does not seem to be a very small firm as it has 11 advisors and current only takes people with assets of 2 mil or above. Maybe technically we are "clients" since we paid for the tutorial. Another poster mentioned that another advisor on YouTube was giving access of RightCapital for free. viewtopic.php?p=7898763#p7898763 I vaguely remember another poster saying it was only for a portion of the software but I don't have a link to the post.

Maybe. Or maybe enforcement of the terms has been lax. I read the terms and found this statement which seems to prohibit the use as described above. It states:

LICENSE RESTRICTIONS
You agree not to (and not to allow any third party to):
use the Services other than for providing your services directly to End Users;
use the Services for any reason or manner, other than as permitted under the terms of this Agreement;
lease, license, sublicense, rent, distribute, sell, or resell the right to use or access the RightCapital Technology or any part thereof;

I guess the question is who are the end users. Certainly, they can do it for their regular clients. So what is the definition of a client. We paid for the tutorial, where the advisor shows us how to plan for retirement using the software. Can we not be considered a client? If there are selling access of the software only, then it is clear to me that it violates what you have posted. If they are selling the service of retirement planning via videos, then it seems that we can be considered as clients and this technically meets what you have posted. I guess RightCapital can disagree and they are fight it out. I have printed the advisor's webpage and the FAQ stating that we have access until they or the software company goes out of business. If, for whatever reason, I can no longer access the software and advisor firm is still there, I will complain.

It seems like a grey area. To me, it looks like they are selling access to the software and the "academy" is just a way to say you are a client. But they are not really directly advising you. On the surface, that seems like a violation of the terms.

I agree that it seems like a grey area.

[Harmanic]

I am assuming that the advisor firm knows what they are doing. It does not seem to be a very small firm as it has 11 advisors and current only takes people with assets of 2 mil or above. Maybe technically we are "clients" since we paid for the tutorial. Another poster mentioned that another advisor on YouTube was giving access of RightCapital for free. viewtopic.php?p=7898763#p7898763 I vaguely remember another poster saying it was only for a portion of the software but I don't have a link to the post.

Maybe. Or maybe enforcement of the terms has been lax. I read the terms and found this statement which seems to prohibit the use as described above. It states:

LICENSE RESTRICTIONS
You agree not to (and not to allow any third party to):
use the Services other than for providing your services directly to End Users;
use the Services for any reason or manner, other than as permitted under the terms of this Agreement;
lease, license, sublicense, rent, distribute, sell, or resell the right to use or access the RightCapital Technology or any part thereof;

I guess the question is who are the end users. Certainly, they can do it for their regular clients. So what is the definition of a client. We paid for the tutorial, where the advisor shows us how to plan for retirement using the software. Can we not be considered a client? If there are selling access of the software only, then it is clear to me that it violates what you have posted. If they are selling the service of retirement planning via videos, then it seems that we can be considered as clients and this technically meets what you have posted. I guess RightCapital can disagree and they are fight it out. I have printed the advisor's webpage and the FAQ stating that we have access until they or the software company goes out of business. If, for whatever reason, I can no longer access the software and advisor firm is still there, I will complain.

It seems like a grey area. To me, it looks like they are selling access to the software and the "academy" is just a way to say you are a client. But they are not really directly advising you. On the surface, that seems like a violation of the terms.

I agree that it seems like a grey area.

I prefer to stay away from companies that deal in grey areas.

[delamer]

Is RightCapital available by subscription to individuals for their personal use, or does access have to come through a financial professional?

[CashFlo]

Is RightCapital available by subscription to individuals for their personal use, or does access have to come through a financial professional?

It's my understanding RC works directly with advisors.

"per advisor"

https://www.rightcapital.com/pricing/

[student]

Is RightCapital available by subscription to individuals for their personal use, or does access have to come through a financial professional?

It's my understanding RC works directly with advisors.

"per advisor"

https://www.rightcapital.com/pricing/

According to https://www.forbes.com/advisor/investin ... l-advisor/ "There’s no federal law that regulates who can call themselves a financial advisor or provide financial advice" so it is likely that RightCapital will sell it to anyone who is willing to pay but $140 a month seems expensive for one person.

[CletusCaddy]

Is RightCapital available by subscription to individuals for their personal use, or does access have to come through a financial professional?

It's my understanding RC works directly with advisors.

"per advisor"

https://www.rightcapital.com/pricing/

According to https://www.forbes.com/advisor/investin ... l-advisor/ "There’s no federal law that regulates who can call themselves a financial advisor or provide financial advice" so it is likely that RightCapital will sell it to anyone who is willing to pay but $140 a month seems expensive for one person.

There are definitely state laws regulating “investment advisor”

That said it is not a high bar, comparable to getting one’s real estate license

[student]

Is RightCapital available by subscription to individuals for their personal use, or does access have to come through a financial professional?

It's my understanding RC works directly with advisors.

"per advisor"

https://www.rightcapital.com/pricing/

According to https://www.forbes.com/advisor/investin ... l-advisor/ "There’s no federal law that regulates who can call themselves a financial advisor or provide financial advice" so it is likely that RightCapital will sell it to anyone who is willing to pay but $140 a month seems expensive for one person.

There are definitely state laws regulating “investment advisor”

That said it is not a high bar, comparable to getting one’s real estate license

You used the term investment advisor. It is different from financial advisor, right?

[student]

Update: I use both Emoney and RightCapital to manually enter investments. RightCapital prices for stocks/etf/mutual funds are usually 1-2 days behind.

[az2023]

Can rightcapital import from Citibank and Chase? Can it be used to automatically track investments like PersonalCapital?

[student]

Can rightcapital import from Citibank and Chase? Can it be used to automatically track investments like PersonalCapital?

Yes. It can be used to automatically track investments like PersonalCapital but I prefer entering the info myself. I don't know about Citibank and Chase but I think the answer is yes.

[student]

Update: I have been using it for a while now. It is more or less what I expected. However, one thing happened that makes me wonder how robust is their Monte Carlo simulation. My early retirement probability of success went from over 80% to 55% in a single day yesterday. No idea why. From the setup, I see that there are no changes in the portfolio return assumption and the inflation rate assumption.

Edit: It is back to normal too. I assume there was a bug.

[randyp]

As a user of the $300 lifetime plan, One point that can be confusing, is that there appears to be three "views" when working with the Right Capital portal, (especially obvious when reviewing the official Right Capital help files or YouTube videos).

1. There is a advisor portal for access to "advisor level" assumptions and capabilities, some of which that can flow down to the next level and be customized for each individual client, and some that a diy may want to be able to set for their circumstances.

2. There is the advisor view of the client level portal, which is visually very similar to the actual client view, but with but many desirable customizing features, that are not available in the actual client view. An example would be action items under the retirement tab. An earlier poster indicated that you can see "all" the clients goals, under action items, which is only true if the advisor has clicked the "all" the goals feature, which is a capability only included in the "advisor level" view of the client portal. There are many examples of this when trying to understand the actual client portal, which is what I am calling level 3.(which is what you get for the $300). Most of the capabilities in this view, a dyi would find desirable or highly desirable.

3. The client view, which is worth every penny of the $300, Imo, but since this $300 package is a completely "learn on your own" arrangement with no support or ability to ask questions, you have to be ready to spend some time understanding the nuances between what you can control and what is either being decided for you or just a "not included" customization of the $300 plan.

I completely understand and agree with the business model for these three levels. This platform is designed to support "for profit" financial planning firms, and as such, needs to promote capabilities that highlights the value of these firms. The $300 lifetime fee is a far cry from what advisor firms are spending, so should be the value delivered to those not interested in (or not eligible for) a full blown program, Imo

[pop77]

Can you do modeling of Roth conversion over several years using this version of Rightcapital?
Can you compare it with reduction in ACA subsidies to make an optimal decision on how much to convert?

[KiwiBobs]

@student - does your version of RightCapital under Tax Strategies show the tabs "Summary", "Calibration", "Comparison", "Details", "Strategies"?

I got a link from Kevin Lum YouTube Channel for free access to RightCapital and under Tax Strategies it only shows the tabs "Calibration", "Comparison", "Details".

Under Roth Conversions, I find the Equity Allocation selections "strange" (https://help.rightcapital.com/module-ov ... strategies). It wants to force your asset allocation into one of the selected algorithms. Then it does Roth Conversions. How can that be accurate e.g. if it ended up moving IRA bond money into Roth Stocks then of course the projected gains are going to be huge. It looks like at the Advisor level you have more control on asset allocation, so assuming they are smart enough to get the right settings for each client then maybe you can get accurate Roth Conversion projections.

I prefer Pralana, you have more control over everything and can see what is happening under the hood.

[MandarinOrange]

I got RC through a YouTuber with Root Financial, along with the Academy videos. It sounds like I have level 3 client version. I only see three Goals under Action Items.

@kiwibobs Under Tax Strategies I have the five tabs - Summary, Calibration, Comparison, Details, Strategies. I leave Equity Allocation as pro-rata.

I like RC except that every time I log in, I have to redo my Proposed Strategy. I do this by 1) re-doing the Withdrawal Sequence and Roth Conversion target under Tax Strategies/Comparison and 2) I also have to change Tax Strategy from Current Strategy to Tax Proposal under Retirement/Analysis/Probability/Action Items.

[student]

@student - does your version of RightCapital under Tax Strategies show the tabs "Summary", "Calibration", "Comparison", "Details", "Strategies"?

I got a link from Kevin Lum YouTube Channel for free access to RightCapital and under Tax Strategies it only shows the tabs "Calibration", "Comparison", "Details".

Yes. I have all 5.

Under Roth Conversions, I find the Equity Allocation selections "strange" (https://help.rightcapital.com/module-ov ... strategies). It wants to force your asset allocation into one of the selected algorithms. Then it does Roth Conversions. How can that be accurate e.g. if it ended up moving IRA bond money into Roth Stocks then of course the projected gains are going to be huge. It looks like at the Advisor level you have more control on asset allocation, so assuming they are smart enough to get the right settings for each client then maybe you can get accurate Roth Conversion projections.

I prefer Pralana, you have more control over everything and can see what is happening under the hood.

My plan is use RightCapital as a guard and then talk to Planvision (which I also subscribe to) when I need to do Roth conversion.