The Guardrails Value Add helps clients visualize whether their current spending rate is sustainable. It compares their actual distribution against recommended guardrails, showing when they might want to spend more or pull back.
This article walks through every section of the Guardrails report, explains where each value comes from, and outlines what is automatic vs. customizable.
What Is the Guardrails Value Add?
The Guardrails Value Add is a client-facing report that:
Shows the client's current distribution rate vs. the firm's recommended rate
Provides upper and lower guardrails that signal when to adjust spending
Displays a visual indicator showing where the client sits within those guardrails
Includes a distribution table with portfolio values, rates, and monthly income across four scenarios
It is generated automatically using household account data and firm-level rate settings.
1. Header & Branding
Logo
Pulled from your firm's saved company logo
Editable under Settings → Firm Settings
If no logo is saved, the report displays without one
Branding Color
Uses your firm's branding color
Default color is a dark navy
Controls footer borders and accent elements
Report Title
Default title: "Guardrails"
Can be customized at the firm level
Editable under Settings → Value Adds → Guardrails Settings
2. Reported "As-Of" Date
The Reported As-Of Date reflects the most recent valuation date found across all household accounts.
How it's determined
The system scans all accounts in the household
The latest valid "as-of" date is used
If no dates exist, today's date is used as a fallback
Display format
M/D/YYYY (U.S. format), e.g., "2/4/2026"
This date is fully automatic and cannot be manually edited. To change it, you would need to update the "as-of date" field on accounts within that household.
3. Client Name Line
Pulled from all clients linked to the household
Displayed as: Last, First with superscript ages
For two clients with the same last name: Smith, John⁶⁵ & Jane⁶²
For two clients with different last names: Smith, John⁶⁵ & Doe, Jane⁶²
Deceased clients are automatically filtered out if at least one living client exists
4. Max Distribution Available (Green Callout)
The green highlighted section at the top of the report shows the recommended distribution rate and the monthly income that rate would produce.
Distribution Rate
This is the firm's recommended available distribution rate
Default: 5.4%
Editable under Settings → Value Adds → Guardrails Settings → Available Rate
This rate is the same for all households within a firm
Monthly Income Amount
Calculated as: (Portfolio Value × Available Rate) / 12
Example: A $1,000,000 portfolio at 5.4% = $54,000/year = $4,500/month
Displayed rounded to the nearest dollar with no decimals
5. Current Distribution (Blue Marker)
The blue vertical marker and the bottom-left callout show the household's current distribution rate and monthly income.
How the Current Rate Is Determined
If the household has systematic withdrawals set up on any included accounts, the system calculates the current rate from those actual withdrawals
The formula: (Total Monthly Withdrawals × 12) / Portfolio Value
If no withdrawals are configured, the current rate defaults to the available rate
Where Withdrawal Data Comes From
Each account can have one or more systematic withdrawals with an amount and frequency (Monthly, Quarterly, Semi-Annual, or Annual)
The system converts all withdrawals to a monthly equivalent and sums them across all included accounts
Example: A $2,000/month withdrawal + a $6,000/quarter withdrawal = $2,000 + $2,000 = $4,000/month total
Current Monthly Income
If actual withdrawals exist, the monthly income shown is the real total from those withdrawals
If no withdrawals exist, monthly income is calculated using the available rate (same as the "Available" column)
6. Visual Guardrail Indicator (Colored Bar)
The colored bar provides a visual snapshot of where the client's current spending falls relative to the guardrails.
How to Read the Bar
Green zone (center): The client's distribution rate is within the guardrails — no action needed
Yellow zones (transition areas): The client is approaching a guardrail boundary — worth monitoring
Left red zone ("Too Much Savings / Spend More"): The client's distribution rate is below the lower guardrail, meaning they could afford to spend more
Right red zone ("Not Enough Savings / Spend Less"): The client's distribution rate is above the upper guardrail, meaning they should consider reducing spending
Blue Marker Position
The blue marker shows exactly where the client's current distribution rate falls on the bar
Center of the bar = the available (recommended) rate
Left edge = lower guardrail rate
Right edge = upper guardrail rate
If the current rate is outside the guardrails, the marker will appear in the red zone but won't go off the edge of the bar
7. Distribution Table
The table at the bottom of the report shows four scenarios side by side: Current, Available, Upper Guardrail, and Lower Guardrail.
Portfolio Value Row
Current & Available columns: Both show the same value — the sum of all included account values, rounded down to the nearest $1,000.
Upper Guardrail column: The portfolio value that would push the client into the upper guardrail. Calculated as: Current Portfolio × (Upper Rate / Available Rate). Example: $1,000,000 × (6.0% / 5.4%) = $1,111,000
Lower Guardrail column: The portfolio value that would trigger the lower guardrail. Calculated as: Current Portfolio × (Lower Rate / Available Rate). Example: $1,000,000 × (4.8% / 5.4%) = $889,000
Distribution Rate Row
Current: Calculated from actual withdrawals (see Section 5), or defaults to the available rate if none exist. Displayed with 2 decimal places.
Available, Upper Guardrail, and Lower Guardrail: These are your firm's configured rates. Defaults are 5.4%, 6.0%, and 4.8% respectively. All three are editable under Settings → Value Adds → Guardrails Settings.
Monthly Income Row
Current: The actual monthly withdrawal total from systematic withdrawals, or the calculated amount using the available rate if no withdrawals exist.
Available, Upper, and Lower columns: All calculated using the same formula: (Portfolio Value × Available Rate) / 12
Important: All three non-current columns use the available rate for income calculations — not their respective guardrail rates. This is by design. The guardrail rates indicate when to adjust spending, but the income column shows what spending looks like at the recommended rate for each portfolio scenario.
8. Account Inclusion & Exclusion
The Guardrails report only includes investable accounts that represent long-term savings and retirement assets. Cash accounts and certain special-purpose accounts are excluded.
Which Accounts Are Included?
Included account types generally fall into:
Brokerage and individual investment accounts
Retirement accounts (Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, Rollover IRA)
Employer plans (401k, 403b, 457b, TSP, Pension)
Annuities (all types)
Trust accounts
Health Savings Accounts (HSAs)
Which Accounts Are Excluded?
Cash accounts — These represent operating cash, not retirement savings:
Checking accounts
Savings accounts
Money market accounts
Certificates of deposit (CDs)
Cash accounts
Education accounts — These are earmarked for education expenses:
529 plans
Coverdell ESAs
Educational savings accounts
Custodial accounts — These belong to minors:
UTMA and UGMA accounts
Guardianship and conservatorship accounts
Inherited accounts — These have different distribution rules:
Inherited IRAs (Traditional, Roth, etc.)
Inherited 401(k), 403(b), 457(b)
Beneficiary IRAs
A Note on HSAs
Health Savings Accounts are currently included in the Guardrails portfolio value. HSAs can hold investments and grow tax-free for retirement healthcare expenses, so the system treats them as investable rather than as savings accounts.
Why doesn't my portfolio number match what I see elsewhere?
The most common reasons for a discrepancy:
Cash accounts are excluded — Checking, savings, and money market accounts are not included in the portfolio value shown on this report
Education and custodial accounts are excluded — 529s, ESAs, and UTMA/UGMA accounts don't factor into the guardrails calculation
Inherited accounts are excluded — Inherited IRAs and beneficiary accounts have different distribution rules and aren't part of the standard guardrails analysis
Values are rounded — Portfolio values are rounded down to the nearest $1,000
9. Firm-Level Configuration
All guardrail rates are configured at the firm level, meaning every household in your firm uses the same rates.
Configurable Settings
Setting | Where to Edit | Default |
Report Title | Settings → Value Adds → Guardrails Settings | "Guardrails" |
Available Rate | Settings → Value Adds → Guardrails Settings | 5.4% |
Upper Guardrail Rate | Settings → Value Adds → Guardrails Settings | 6.0% |
Lower Guardrail Rate | Settings → Value Adds → Guardrails Settings | 4.8% |
Disclaimer Text | Settings → Value Adds → Guardrails Settings | Default disclaimer |
Rate Defaults
If no custom rates are configured, the system uses these defaults:
Available Rate: 5.4%
Upper Guardrail: 6.0%
Lower Guardrail: 4.8%
These rates apply to all households within the firm. Individual household overrides are not currently supported — rates are firm-wide.
10. Footer & Disclaimer
Footer
Displays firm contact details:
Address
Phone number
Website
These are pulled from Settings → Firm Settings and separated by dots.
Disclaimer
The disclaimer is built dynamically and includes lead advisor names
Custom disclaimer text is editable under Settings → Value Adds → Guardrails Settings
If no advisors are assigned to the household, the disclaimer will explicitly state: "NO ADVISORS ASSIGNED"
In Summary
The Guardrails Value Add is:
Automatically generated from household account data and systematic withdrawals
Rules-based and consistent — the same rates apply to every household in your firm
Firm-customizable — title, rates, and disclaimer can all be adjusted in Settings
Transparent by design — every value can be traced back to a specific data source or configuration
If a number on the report doesn't match what you expect, the most likely explanation is account exclusions (cash, education, custodial, or inherited accounts), or the rounding of portfolio values to the nearest $1,000.