Plan Settings – Setting the Liquidation Order **AdviserGo, all regions**

AdviserGo will work out most of the future cash flow for you, if you let it. If annual income doesn’t fully meet planned expenses, the software will automatically top-up income from liquid assets in order to prevent potential shortfalls in the cash flow, provided you place no Liquidation Limits on these accounts.

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 on 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 change the high level Liquidation Order click on the category you want to move in the Current Liquidation Order column and use the arrows to move it up or down the list.

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The Available Account Types in the left column allow for product-specific account types to be added and positioned among the broader asset categories. For example, in the UK, if the strategy is to liquidate Onshore bonds before Money Purchase Pensions, both of which are in the broad tax deferred category, these two types of accounts could be added to the liquidation order to the right and positioned accordingly.

More information on each liquid asset category

Cash accounts are a category of accounts not shown in the Liquidation Order. These accounts are intentionally excluded from the Liquidation Order because they are usually liquidated prior to the types of accounts shown in the liquidation order. Cash accounts include:  

  • 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.

In our UK release: 

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

In our release for Ireland: 

 Taxable accounts include: 

- Portfolio Accounts
- Offshore Taxable* 

Tax Free accounts include: 

-  Offshore Taxable (can be used as a tax-free option). Otherwise, there are no specifically tax-free accounts, at present.

Tax Deferred accounts include: 

- ARF/AMRF Accounts (i.e. crystallised DC pension benefits)
- Unit-Linked/Investment Trust accounts (Bonds)