Asset Accounts

You can add unlimited Asset accounts as well at track individual Holdings of a Parent or Brokerage account.

To add a new Asset account, click on the + button in Total Assets card. You can add either a Manual account or Synced Account (if applicable).

Lets go ahead and add a Manual account. The Add Asset drawer opens where you can enter the following settings to get started:

Asset Details

  1. Title (required) - enter a title for the Asset account

  2. Description or Goal - if you want you can enter an optional description or goal for the account

  3. Add Holdings (only if applicable) - only used if tracking sub accounts within a Parent account (ie; individual stocks or bonds within a Brokerage account)

  4. Asset Type (required) - select Consumer, Depreciating, Appreciating or Cash Flow per the dominant characteristic of the Asset. Reference TWF Money Quadrant training and Asset Cheat Sheet PDF.

Select the Asset Type either Consumer or Depreciating (possible Tier 1), Appreciating (Tier 3) or Cash Flow (Tier 2). See TWF Money Quadrant training. Affects Capital Allocation (ND2 ratios) and Debt Payoff modules. Does not affect Compound Return module or Balance Sheet calculations.

After selecting the Asset Type, other settings become available to complete.

  1. Asset Sub-type (required) - Select the Asset Sub-type. Use Portfolio as default or for any asset that does not fit other options.

Securities can be used for individual stocks, bonds, options or derivatives contracts. Units can be used for real estate rentals, private money lending notes or virtually any asset type you can think of. Zero Value Asset can be used for social security, disability, pension or annuity income (ie; income sources with no underlying sellable asset). Affects Compound Return module.

Asset Value

  1. Current Value (required) - enter the current market value or balance of the asset. Once this setting is entered, you can save the asset or continue entering more data (highly recommended).

The current balance or fair market value of the Asset. Auto calculated when Security or Unit selected as Investment Type. Note: If asset is an options contract, multiple by 100 to calculate correct value. Short positions will be reflected as negative balance values until closed.

  1. Annual Appreciation - enter the expected average annual growth of the underlying asset. For example, capital gains growth (not income received - use Current Yield instead).

Annual Appreciation is the expected percentage increase GROWTH in the base price or balance of the asset.

  1. Additional Contribution - if you plan to add more capital to this asset you can enter the amount and frequency here.

Additional Contribution is a lump sum added (based on period selected) to this specific asset only.

Asset Income

  1. Current Yield - enter the expected average annual yield (cash flow) of the asset. For example, dividends, interest, rental income, etc.

Current Yield is the current annual percentage yield of INCOME (distribution, dividend, rent, interest, etc) of the asset. NOTE: If Securities is selected as Asset Sub-type, you'll see Annual Dividend/Coupon field. Enter the current nominal $ amount paid annually by your security and the Current Yield will be automatically calculated (based on Annual Dividend/Coupon divided by Price).

  1. Yield Growth Rate - if applicable, enter the expected average annual yield growth rate (increase in cash flow) of the asset. For example, dividend paying 5% per year is Yield, but if dividend is also increasing by 5% per year then that is Yield Growth Rate.

Yield Growth Rate is the expected annual percentage increase in the Current Yield. For dividend growth stocks make sure both Annual Appreciation and Yield Growth Rate are used.

  1. Distribution Frequency - select the frequency of the income distributions received from the asset.

The Distribution Frequency option will determine how often income from existing assets will be received as well as the rate of compounding (if Compound/DRIP selected). For reinvestment, the Compound Return calculator uses a monthly computational cycle regardless of which Distribution Frequency is selected. This allows for purchase of new assets on a monthly basis by applying the amounts entered into Monthly Income fields (Wealth Account, Debt Accelerator, Debt Calculator Rollover, Monthly Unearned Income) so funds are not sitting waiting to be invested if a longer Distribution Frequency is selected.

  1. Reinvest Income - select whether or not to reinvest the income. If yes, there are 3 options: 1) Compound/DRIP, 2) Into other assets, or 3) Into debt payoff

Select Compound/DRIP to allow income generated from this asset to be reinvested into purchase of more of the SAME asset according to the selected Distribution Frequency. The verbiage “purchase of new assets”, has a slightly different meaning depending on which Investment Type is selected. For Portfolio, the amount is simply added to the balance whereas for Securities and Units, new individual assets are purchased. Select 'Into other assets' to allow income generated from this asset to be reinvested into purchase of OTHER assets on your balance sheet. Must check 'Use income from non DRIP Accounts' in MOAC Advanced Options.

Additional Options

  1. Cost Basis - option field to log your original or total costs basis of the asset. This field will auto update for individual positions (Holdings) when brokerage syncing used.

The original acquisition costs of the asset. Alternatively use to track total all in costs over time. This field is currently not tied into any module.

  1. Volatility Ratio - an optional field to log an estimated or historical volatility metric for the asset

The estimated average volatility of the asset. This field is information only and not currently not tied into any module.

  1. Tax Rate - an optional field to log an estimated or historical tax rate for the asset

Tax Rate value if entered, will calculate based on income received from the asset and will add a Tax column to the Compound Return results table showing the tax paid for the year.

  1. Reference URL - an optional field to log any additional notes or reference related to the asset

An optional reference field to store a URL or other helpful info about the asset.

  1. Liquidation Priority - an optional field to select a liquidation priority (used during balance sheet restructuring)

An optional field to help prioritize non productive assets scheduled for liquidation. This field is currently not tied into any module.

  1. Exclude from Annual Withdrawal - removes this asset from MOAC Annual Withdrawal calculations when checked.

Check to remove this Asset account from Compound Return module Annual Withdrawal calculations.

  1. Exclude from Compound Return - removes this asset from MOAC when checked

Check to remove this Asset account from the Compound Return module.

  1. Exclude from further investment - removes this asset from receiving new capital (either ND1 Budgeting money or Income from other T2 assets) in MOAC when checked.

Check to prevent this Asset from receiving additional funds from other assets including Earned Income or Wealth Account money from ND1 budgeting ratios in Compound Return calculations.

Save or Cancel - you must hit the Save button to save any changes you've made, or hit Cancel to exit without saving changes. This is to ensure accidental changes are not saved and that positive action is required on your part to make the changes.

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