Q1: What does the “Annual Capital Gains Liquidation” setting do in Voyant?
In Voyant, this setting allows you to realise (or “liquidate”) any capital gains in an investment once per year. The software then converts these gains to cash, which can be used for withdrawals, spending, or reinvestment in the plan. This helps you model the impact of taxes and cash flow more accurately.
Q2: Why does Voyant offer this option?
Voyant provides this setting to help advisers and clients:
Model taxes realistically: Realized gains may trigger tax events. Annual liquidation ensures the plan reflects these taxes year by year.
Simulate cash flow needs: Liquidating gains annually creates predictable cash for spending or rebalancing.
Support portfolio management: It allows the software to maintain target allocations and account balances, reflecting realistic investment behaviour.
Q3: How does it affect my plan?
When annual capital gains liquidation is enabled, Voyant calculates the gain for each asset at year-end, applies any taxes, and adds the net proceeds to cash accounts. This provides a clear view of the account’s growth after fees and taxes, helping you understand your true plan outcomes.
You can set how much is liquidated annually in Plan Settings > Account Fees and Taxation
OR adjust the amount inside an individual assets by going to the Growth section.
Q4: Can I control which accounts or investments are included?
Yes. In Voyant, you can select specific accounts or assets to apply annual capital gains liquidation. This gives you flexibility to model different strategies, such as partial liquidation or focusing on certain portfolios.
Q5: What happens if I don’t use this setting?
If the setting is not used, Voyant assumes gains remain unrealised. The plan will defer taxes until the asset is eventually sold, which may lead to higher tax estimates later and less predictable cash flow for withdrawals.
Q6: Why is this important for financial planning in Voyant?
This setting allows advisers to create realistic, actionable plans. It ensures that tax implications of investment growth are included in projections, and that clients see accurate year-by-year cash availability. This leads to better-informed decisions and more reliable planning outcomes.