 Download Latest Version
 Request KeyCode
 Training Videos
 FAQ's
 User Guides
 Tech Support
 Download Court Forms
 Modify Professional Listing
 Renew Subscription
Did You Know...
Family Law Software can calculate child support guideline amounts in 21 states.
Search all help content: 

Question: How can I show investment returns on a diversified portfolio with components of current income, appreciation, and capital gains? Answer: Let's illustrate this with an example. Suppose that there is $10,000 invested, and you expect 1% interest income, 2% dividend income, 0.5% capital gains income, and 4% appreciation. Here are the steps to take: 1. Divide the investment into three assets, one asset for each category of current income. In this case, we will make the asset values $3,000, $3,000 and $4,000 (roughly equal, adding up to the $10,000 total). 2. Enter those three assets in the software. 3. For each asset, specify and appreciation of the overall appreciation rate you expect. In this case, that would be 4%. 4. Calculate the dollar amount of income you expect from the current income investments. In this case, that would be $100 of interest income, $200 of dividend income and $50 of capital gain income. 5. Enter that dollar amount for each asset, and specify the appropriate tax category. a. Dividend Investment, Value: $4,000. Net Cash Flow: $200. Tax Category: Dividend. b. Capital Gain Investment. Value: $3,000. Net Cash Flow: $50. Tax Category: Capital Gain. c. Interest Investment. Value $3,000. Net Cash Flow: $100. Tax Category: Interest. All of these investments would have an appreciation rate of 4.0%. You will then have the following results: 1. The entire investment will appreciate at 4%, as desired. In short, you will have modeled the investment situation you wish. 