Tip: Did you remember to check to make sure that the Ziegfields are the currently selected clients?
If they are not, click on Clients in the Main Toolbar, or click on Client | View all Clients or press Ctrl+A.
Double-click on the Ziegfields in the client list, or click on them, then click on the Select and Close button or press Alt+S.
Let's enter a Savings Account. From the Main Menu, select Portfolio and slide down past Cash to Savings Account.
Click on Savings. You see the list of available savings accounts owned by this client. Because this is a new client, there are no savings accounts listed. When you select a particular type of asset, MasterPlan for Windows always shows you all the assets of that type owned by this client. It will also include any assets for which you have created What-If Buy instructions. You can add to the list or edit existing ones.
Click on the Actions Menu in the upper right-hand corner of the window and select New or press Ctrl+N. You will see the first tab of the data entry window.
This Common Pool cash asset type has 3 tabs:
Common Pool
Description
Retirement/Payout
You might want to fill out the Common Pool Tab following this example:
If an asset is not a qualified retirement asset, you can skip the fields on the third tab.
This asset type has three data entry items that you will probably always want to fill out:
Common Pool Asset Name: This name can be up to 50 characters long, although it will be truncated on most reports. MasterPlan uses the Common Pool Asset Name to uniquely identify this asset from other cash assets of the same type in the Common Pool. For example, two savings accounts cannot have the same Common Pool Name. (Common Pool Tab)
Description Asset Name: In MasterPlan for Windows, Common Pool assets can have two names: The Common Pool Asset Name will be the same for every person that owns the asset, but the name on the Description Tab may be completely different from the Common Pool name. We will use the Description Name on the reports. In fact, if the client owns the same Common Pool asset (such as IBM stock) in several different ways, the name on the Description Tab for each holding must be different. For example, the Common Pool Asset Name might be IBM. The name on the Description Tabs might be Brad's IBM Stock; another might be IBM Stock for Buster's Education, and a third holding might be named Kristin's IBM Inheritance.
Account Balance: Actually, you don't really need to enter account balance, but why would you leave it 0? The Account Balance will transfer over as the net worth amount of the asset in the reports.
Note: Once an item is in the Common Pool, you can retrieve it by clicking on the down arrow by the Common Pool Name. Arrow to the one you want and select it.
Notice that MasterPlan fills out a lot of the items for you. If you don't care about these fields, or they don't apply, just leave them as they are and tab past them.
Although they are not vital, you will probably find it useful to fill out some of the additional fields.
Interest Rate: If you expect the savings account to earn any interest, fill in the interest percentage. Since MasterPlan asks you for a percentage, you don't need to type the %. You only need to type the % sign when you can choose to enter either a dollar figure, or a percentage.
Percent Taxable: If the interest will be taxed, enter the percentage. Normally this is 100. MasterPlan will automatically tax the growth of the account for the rest of the current year and for all of the years thereafter (unless it is a qualified retirement asset).
Reinvest to Age: If the client is going to reinvest the interest through life expectancy, type in the life expectancy. This means that the interest will show up as taxable (if it is taxable), but MasterPlan will add the amount earned to the existing account balance. The interest will not show up as Cash Flow.
However, if the clients are taking the interest earned as cash flow, leave the Reinvest to Age at 0, or else type the age at which they will switch over to take it as cash flow.
Annual Ongoing Contribution and Contrib. Escalation: If the clients are going to continue to contribute to this asset, fill out these items. If the contribution is going to keep pace with inflation, you might type in the inflation rate as the Contribution Escalation %.
Click on Save and Close. If you want do not want to add another savings account, you can close the list.
