AdviserGo will work out most of the future cash flow for you, if you allow it to. If annual income doesn’t fully meet planned expenditure, the software will top-up income from liquid assets, automatically, to prevent potential shortfalls in the cash flow. It will do so on the proviso that 'Withdrawal Limits' are not placed upon the clients' accounts. (In this context, please note that there are some accounts from which the software will never take 'as needed' withdrawals.)
The order in which assets are liquidated can be set at a very general level, by asset category, in Plan Settings > Liquidation Order. Plan Settings can be found via the Dashboard.
The default liquidation order, which can be changed, is normally Taxable assets first, then Tax Deferred assets, and ending with Tax Free assets for the UK, the US and Ireland. For Canada, the default liquidation order is usually Non-Registered, Registered, Tax Free.
To edit the high level Liquidation Order select the desired category, in the Current Liquidation Order column, and use the arrows to move that category up or down the list.
The Available Account Types in the left column allow for product-specific account types to be added and positioned alongside the broad asset categories. For example, if the strategy is to liquidate Onshore Bonds before Money Purchase Pensions - both of which sit within the 'tax deferred' category - one, or both, types of account could be added to the liquidation order, on the right-hand side, and positioned accordingly.
More information on each liquid asset category
Cash/Savings accounts are a category of account that is excluded from the Liquidation Order. The reason, very simply, is that - because cash is already 'liquid' - cash accounts do not need to be 'liquidated'. (Note: An exception is applied to Cash ISAs and National Savings accounts, which sit within the category of 'Tax Free' accounts, as detailed below.)
- The notional, default Cash Sweep Accounts created by the software for each person in the plan (e.g. John’s Cash, Julia’s Cash),
- Current and Savings accounts.
Taxable accounts include:
- Unwrapped Investments (e.g. OIECs, unit trusts, shares, investment portfolios)
- Enterprise Investment Schemes
- Other Trusts
- Offshore Taxable
Tax Deferred accounts include:
- Money purchase and drawdown pensions
- Onshore and Offshore bonds
Tax Free accounts include:
- ISAs
- National Savings Certificates