Learn how to efficiently manage and edit a client’s lifestyle assets data
The Lifestyle Assets card is designed to capture personal assets that cannot be represented as monetary accounts. This includes tangible items such as real estate, vehicles, valuable collectibles, or any other physical objects of significant value.
Accessing the Lifestyle Assets Card
To access the Lifestyle Assets Card, navigate to the client’s Current Data page and locate the Financial Data section. This is where you can view, manage, and update all lifestyle asset details for the client.
Lifestyle Assets Card Properties
To add a new Lifestyle Asset, simply click the "+ Asset Type" button in the bottom left of the card.
To the right of each Lifestyle Asset is a More Data icon that allows you to specify more details about the Lifestyle Asset.
The input fields under the Information tab are generally consistent across all asset types, with two key exceptions:
- Principal Residence Toggle: For residences, a Yes/No toggle is available to indicate whether the property is a principal residence. This information is essential for tax purposes.
- Market Value vs. Purchase Date: Existing assets include a Market Value field, while future assets replace this with a Purchase Date field.
Input Guidelines:
- Description Field: Enter a name that will serve as a reference for the asset throughout the application, such as in reports, calculations, or the user interface.
- Market Value, Purchase Amount, and expected Growth Rate: Fill these fields as accurately as possible for the best financial planning results.
- If the asset depreciates over time (e.g., a boat listed as personal-use property), you can enter a negative value for the growth rate to reflect this.
Lifestyle Asset entries allow you to add both Personal Use Property and Listed Personal Property (LPP). The key difference is that LPP generally appreciates in value over time, unlike most other personal use properties.
LPP includes any interest in or rights to the following types of items:
- Prints, etchings, drawings, paintings, sculptures, or similar works of art
- Jewellery
- Rare folios, manuscripts, or books
- Stamps
- Coins
Since LPP is a category of personal use property, capital gains or losses from selling LPP items are calculated in the same way as for other personal use property.
Note: LPP gains do not include gains from selling or donating certified Canadian cultural property to a designated institution.
Asset Sale
If the client intends to sell the asset in the future, the sale date can be specified as a calendar date, age, or event (e.g., retirement). If the client plans to retain the asset indefinitely, there is no need to modify the fields under the Asset Sale tab.
The Direct Proceeds feature allows proceeds from the sale of a lifestyle asset to be allocated to multiple destinations.
- To add destinations, click the "+ Proceeds Destination" button.
- Use the up and down arrows to adjust the order of items in the list.
- You can reorder both the secured liabilities in the top section and the proceeds destinations in the bottom section.
If proceeds are not directed to a Liability or Account, they will default to cashflow. If the client is pre-retirement, the proceeds will be assumed to be spent. If the client is retired and has set the Retirement Goal to assume all surpluses are spent, the proceeds will again be assumed to be spent.
Note: A non-registered account should always be placed at the end of the list, as any remaining proceeds will automatically be distributed to this account. If it is not last, any liabilities listed after the non-registered account will be ignored, as no further funds will be available for distribution.