YCharts’ Transition Analysis tool streamlines the portfolio transition process to enhance your practice’s proposal workflow and ensures any transition plan is mindful of your client’s tax budget.
Getting Started
Transition Types
Transition Calculation
Frequently Asked Questions
Getting Started
How to Create a Transition Analysis
1. Select the Transition Analysis tab within the portfolio (portfolio must be a 'client portfolio').
2. Choose the portfolio you'd like to transition to in the Transition Security section at the top left.
3. Select a transition type in the Transition Type dropdown. Learn more about the transition types here.
4. Select Run.
5. You can save the transitioned portfolio as a model, download a PDF of the report, or archive the transition analysis.
Transition Types
- Full Transition:
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- Identifies and completes all necessary trades to transition from the current client portfolio to the transition security.
- Tax Efficient Transition:
- Sells all losing positions (positions with net losses) based on their cost basis.
- Sells winning positions incrementally, starting with the smallest portfolio positions, until the total amount of sales nets out.
- Ensures the user ends up owing 0 in taxes using this method.
- Custom Transition:
- Allows the user to manually enter transactions by shares or dollars without completing any trades automatically.
Transition Analysis Calculation
Tax Impact
- Calculation: Total Gain x Tax Rate
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- You can find each positions total gain under the Account View subtab within Holdings.
Frequently Asked Questions
Can I add the transition analysis to a PDF report?
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Yes, you can download a PDF report of just the transition analysis by selecting Save As in the top right and then selecting Download PDF. To add into a report via Report Builder, you will want to select Archive from that same dropdown menu, then pull a PDF report that contains the Transition Analysis module.
Why is the Transition Analysis tab not appearing in my portfolio?
- The Transition Analysis tab will not appear in portfolios that are not client portfolios. If your portfolio is a model portfolio, you will want to convert it to a client portfolio and then the tab will appear.
Why is the Tax Impact so high in my Transition Analysis?
- The Tax Impact will be higher than expected if you entered in the total cost basis for each holding instead of the average cost basis per share. It can also be high if you entered a cost basis for any cash holdings greater than $1.