Other Assets & Debts

Other Assets allows you to enter the Value and Cost Base of any other significant assets personally owned. For example: jewels or antique cars. Ensure that you enter the assets in the correct column based on the following:

• Index at the rate of inflation: Assets that will increase in value at a rate equal to inflation.
• Index at investment rate of return: Assets that will increase in value equal to the average investment rate of return.
• No index to be applied: Assets that you do not anticipate will increase in value.

Value: Enter the current value of any Other Assets to be included.

Cost Base: Enter the current cost base of the selected asset. The software will utilize this amount when calculating the tax liability from an estate and net worth perspective.

*In some cases, it is possible that a client wishes to downsize or Liquidate Fixed Assets to assist in funding their retirement. The software will not automatically liquidate fixed assets, instead RazorPlan will calculate the retirement assets required and compare this amount to the client’s total assets. This can be seen on the Financial Assets Chart. In most cases, this allows you to look at the effect of liquidating fixed assets without the need to enter a physical liquidation. If you wish to show a downsizing/liquidation, enter the required data through the Liquidation Drill-Down .

Other Debts allows you to enter three types of debts, Credit Cards, Lines of Credit, and Other Debts. For each debt you can enter in the current balance, interest rate and monthly payment.

Balance: Enter the current balance of the selected debt. The software will automatically pay down this debt based on the Interest Rate and Monthly Payment entered.

Interest Rate: Enter the current interest rate associated with the debt. This rate is static and will remain unchanged until the debt is paid off.

Monthly Payment: Enter the current monthly payment being made to the debt. The software allows for a monthly payment only. For clients who are paying weekly or bi-weekly, you will need to adjust their payments to reflect an equivalent monthly payment.