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Asset Allocations in Tabular projections

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Last Post by Bob Nevins 5 years ago

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Bob Nevins

(@nevinsalumni-duke-edu)

Active Member Customer

Joined: 5 years ago

Posts: 19

Topic starter January 30, 2022 3:47 pm

Hi - I've entered my asset allocations for "Regular", TDs, and TF on the appropriate tab under financial assets. But when I look at tabular projections/Asset Allocation, the stock percentage is higher than my real one is. In fact, it's close to what the asset allocation would be if I EXCLUDE cash from the portfolio. Is that how it's supposed to work? Or am I doing something wrong? I have correct balances in the various accounts/taxable categories and correct AA percentages in the Financial assets section. Thanks! So I guess another way of asking the question is, Does "Regular" in the FA/AA tab mean I should include the cash/MM balance there? I did not, bc of the adjacent "Cash" column, but now I think I'm supposed to include cash/MM there.

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asset allocation

Bob Nevins

(@nevinsalumni-duke-edu)

Active Member Customer

Joined: 5 years ago

Posts: 19

Topic starter January 31, 2022 10:40 am

Also, in tabular projections, I'm confused by the "cash balance" column. My start year is 2022, and in the 2021 row there's the (rather large) cash balance I specified on initial balances. Then for the rest of the years beginning with 2022 there is nothing in the cash balance column. In the detailed view it's showing that it withdrew that entire cash balance in 2022. It's way more than a year's spending, so why did it do that? Did it move it to regular investments?

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Keith Neff

(@kpmn)

New Member Customer

Joined: 5 years ago

Posts: 3

February 1, 2022 7:04 am

I had a similar problem when I loaded my stuff in, 2021 had all my assets than 2022 all that was left was the value of my properties. Could not find the cause so I ended up using the 'simple entry' to load the basics then edited to put stuff in the right places. Works fine now but wonder what went wrong?

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Stuart Matthews

(@smatthews51)

Member Admin

Joined: 6 years ago

Posts: 618

February 1, 2022 8:07 am

@nevinsalumni-duke-edu PRC manages a Cash Account (which generally translates to your bank checking and savings accounts) and all of your excess income gets deposited there and all of your expenses get withdrawn from there. This account has floor and ceiling settings that you can specify on the Financial Assets > Management page. When deposits would cause the ceiling to be exceeded, the excess flows into the Regular account. If withdrawals would cause the balance to go below the floor, withdrawals are taken from other accounts in accordance with the withdrawal priorities that you also specify on the FA > Management page. The Cash column on the FA > Asset Allocation page is where you establish the ROR for the Cash Account, and this should not be confused with the adjacent column for the Regular Account.

If you start with a large balance in your Cash account but then notice that it goes to zero in the tabular projections, that indicates that you have a ceiling of zero specified. In this case, the money that had been in the Cash account has been moved over to the Regular account.

Regarding your question "Does "Regular" in the FA/AA tab mean I should include the cash/MM balance there?", it sounds like some time studying the manual would be helpful. Regular simply refers to your regular investment, or brokerage, accounts. It may hold assets in cash or money markets, but that's totally dependent upon the asset classes and the asset allocations you specify on the FA pages, and it has nothing to do with the Cash account.

Stuart

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Stuart Matthews

(@smatthews51)

Member Admin

Joined: 6 years ago

Posts: 618

February 1, 2022 8:10 am

@kpmn Keith, please refer to my response to Bob's questions above. The balance of your Cash account is affected by the floor and ceiling settings you specify on the Financial Assets > Management page. These are set to zero when you download the tool, so that'll take your Cash account balance to zero and move it to your Regular account in the first year if you don't change it.

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Bob Nevins

(@nevinsalumni-duke-edu)

Active Member Customer

Joined: 5 years ago

Posts: 19

Topic starter February 1, 2022 8:55 am

Thanks Stuart, that helps a lot and was pretty much the conclusion I was coming to. I have actually been poring over the manual but it's still a bit of a learning curve to really let the concepts sink in and figure out how to tailor the tool to my situation. Thanks!

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