You might’ve noticed some changes in your dashboard. Perhaps your projected retirement savings have shifted or your recommended trades have changed. Maybe you just noticed that your dashboard loaded more quickly. These changes aren’t accidental. We’ve enhanced both our Monte Carlo simulations and fund analysis to help give you a better understanding of your retirement investments with us.
Here’s an overview of how the changes could impact you.
Fund analysis changes
Our fund analysis helps drives our portfolio diversification analysis in the dashboard and rebalancing decisions for Managed Service clients. We’ve enhanced our analysis of ETFs and other funds by analyzing their underlying holdings instead of assigning them to a single asset class. This gives us better insight into blended funds, or those that don’t fit neatly into one asset class.
Note, we haven’t changed the asset classes used in our target portfolios. Instead, we’ve changed how we map funds to our asset classes. We’re using even more information when analyzing funds.
What changes might you see? With this new level of detail, Managed Service clients may see trades in their accounts while Educational Service users may see slight adjustments to their recommendations. Before taking any action, there may be trading fees or taxes that these recommendations could cause.
Monte Carlo simulations changes
Our dashboard uses Monte Carlo simulations to help project likely outcomes for long-term investments. Below are enhancements to our Monte Carlo simulations that will give you a wider range of outcomes:
Using forward looking returns, correlations, and inflation rates provided by BlackRock, instead of historical returns
Increasing the number of scenarios in our simulator, from 2,500 to 6,000
Simulating rebalances quarterly, rather than annually, for Managed Service clients
Lengthening the time horizons of our simulations, from 20 to 50 years
For more information regarding our Monte Carlo simulation update, please go to our methodology page.
Want to learn more about what’s changed for you and your account? Log in and take a look at your projected retirement income and savings rate.
Disclaimer: The views expressed are for informational purposes only and are not intended to serve as a forecast, a guarantee of future results, investment recommendations or an offer to buy or sell securities by FutureAdvisor. All expressions of opinion are subject to change without notice in reaction to shifting market, economic, or political conditions. The investment strategies mentioned are not personalized to your financial circumstances or investment objectives, and differences in account size, the timing of transactions and market conditions prevailing at the time of investment may lead to different results. Clients may lose money. Past performance is not indicative of future results. Investments in securities involve the risk of loss. Any tax strategies discussed should not be interpreted as tax advice and do not represent in any manner that the tax consequences detailed will be obtained. Clients should consult with their personal tax advisors regarding the tax consequences of investing. FutureAdvisor does not provide personalized financial planning to investors, such as estate, tax, or retirement planning.