Investment Type

The investment Type is used only to set the tax and contribution rules that will be applied to the investment. This selection also sets the fields and options available on screen.

The account Type will not appear anywhere in the charts, overviews or in reports. This omission is intentional as it allows you to select the rules that best match the product you are modelling while avoiding the possibility of confusing your clients. There should be no need to explain to you client what is meant by an unwrapped investment or offshore taxable account, for example, because the account type does not appear in the charts, overviews, and reports.

Simply give the investment an appropriately descriptive name that you and your client will easily recognize during future meetings. 

 

The investment Type will come into play, however, as the software attempts to calculate future cash flow, which may inevitable involve drawing top-up income from liquid assets in order to pay future expenses. The order in which assets are liquidated is determined at least in part based on the Liquidation Order, a preference found on the Preferences screen in the Plan Preference, to the right side of the screen. Read more >> about the liquidation order preference. 

 

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