The NewRetirement software does not model any specific assets such as individual stocks, bonds, mutual funds, etfs, bonds or cash.
Asset allocation is accounted forby entering an optimistic and pessimistic rate of return assumptions for each account. While we can't tell you what rates to enter in your own plan, we can provide this general guidance.
The rates you enter will drive the growth of your portfolio in the Planner and affect many aspects of your plan. If you are looking for a point of reference, you might use you current asset allocation, historical portfolio or fund averages, or your 10 year average annual return. The higher the optimistic rate of return, the more variability you’ll see in the Monte Carlo and vice versa.
Cash Accounts
If you are modeling cash accounts, such as general savings and emergency funds, you may consider a very conservative rate of return aligned with current rates.
Cash Accounts Example
The values in this chart are examples and should not be considered recommendations for your model.
Investment and Retirement Accounts
If you are modeling investment and retirement accounts, you should consider aligning rates of return with your asset allocation in each account.
Retirement Accounts Example
The values in this chart are examples and should not be considered recommendations for your model.
Additional Resources