In this article, we'll go over the income stream tab and how to use it.
The Income Stream tab is next to the Performance tab. Here, you can add scenarios to show your client the evolution of their portfolio's growth.
Just like the performance graph, the Income Stream tab does not make previsions for the future, but simulations of the growth of an investment that would have been made a certain number of years ago. You can toggle the time period and the data in the graph will reflect the returns.
Base scenario:
On CapIntel, the dividends are reinvested in the portfolio by default. There are two columns in the Calendar year section: Value Reinvested and Average Monthly Income. Since distributions are reinvested in this case, the Value Reinvested includes the distributions and the Average Income is equal to 0.
The next section, Source of Distributions, has no data since nothing has been collected.
To add a new scenario, click on the + sign in the top left corner of the portfolio information. It will open a new tab for you to configure it.
You can choose the Type (1) , withdrawal or deposit, the Amount in dollars or percentage (2) and the Frequency (3). You can choose either Monthly or Yearly. If you choose to collect the distributions instead of reinvesting them, tick the Harvest all distributions box.
Harvesting distributions:
Here is a scenario where only the dividends are collected.
In the Calendar Year section, the Average Monthly Income shows the value of the dividends collected monthly and the Value with Dist. shows the value of the portfolio at the end of the year, after the dividends collection.
In the Source of Distributions section, we can see that Principal is always equal to 0% and Distribution to 100%, since only distributions are collected, and the original value of the portfolio is left to grow.
Withdrawal:
Here is a scenario with a yearly 4% withdrawal.
In the Calendar Year section, you can see in the Average Monthly Income column that a monthly income has been calculated based on the 4% collected yearly. The client withdraws between $320 and $352 per month.
The Source of Distributions sections shows where the money of the withdrawal comes from: for the year 2022, 92.20% of the $352.24 collected monthly come from the Principal, and 7.80% come from the distributions.
Deposit:
Here is a scenario with a monthly $200 deposit.
In the calendar Year section, you can see that the Average Monthly income is equal to 0, since there are no withdrawals, and the Value with distribution column takes the deposit into account.
Since there is no withdrawal, the Source of Distributions section has no data in it.
The Graph:
All the scenarios are shown in the graph, in dotted lines. If you hover over the lines, a tooltip will show you the different scenarios.