In the course of planning over an entire life cycle, we typically have a higher risk tolerance the younger we are and our tolerance for risk lowers as we age. This makes sense: when we are young and are full of human capital, we are able to weather hits to our portfolios much more easily than if we have only a few more years (or no years at all) left in the workforce. For a lot of folks, this means being more stock/equity heavy in our asset allocation early in life and introducing more and more fixed income (bonds) as time goes on. So how can we reflect this shift to a lower-earning, but more dependable asset allocation within the Planner?
As of November 2021, you can do so by making use of the future rate change feature within My Plan > Accounts and Assets.
How to change the rates of return for an existing account
Step 1: Navigate to My Plan > Accounts and Assets
Step 2: Open the Savings section
Step 3: Press the edit (✎) icon of the account you wish to edit
Step 4: Press "Model a rate change in the future +"
Step 5: Decide at what age you would like to change your asset allocation
Step 6: Enter your new rates of return. This can either be a decrease (representing an adoption of a more conservative portfolio) or even an increase (a more aggressive portfolio)
Step 7: Press "Save"