Asset Return Assumptions

Where to input asset return assumptions

Navigate to Advisor Portal > Assumptions to review and update asset return assumptions. Aligning assumptions with your desired outcomes is essential in ensuring tailored advice for each financial plan.

Option to use historical asset return data to set return assumptions in RightCapital

Below are assumptions based on historical index return data that you can reference as you set your return assumptions. These assumptions reflect a geometric return calculated from the return data indicated.

RightCapital provides assumptions based on the last 50 years' return data for equity asset classes. For indices that do not have 50 years of data, RightCapital delivers data back to the earliest date that the index is available.

For fixed-income data, RightCapital provides assumptions based on the last 20 years (as many of these indices do not have 50 years of data).

Please review the data below or use your historical data to set your return assumptions.

Asset Class

Interest

Dividend

Capital Gain

2024 Total Return

Index Data Used

Large Growth

2.00%

9.10%

11.10%

S&P 500 Total Return Index: Dec 1973 - Dec 2023

Large Value

2.00%

9.10%

11.10%

S&P 500 Total Return Index: Dec 1973 - Dec 2023

Mid Cap

2.00%

8.31%

10.31%

Russell Midcap Index: Dec 1995 - Dec 2023

Small Cap

2.00%

8.33%

10.33%

Russell 2000 Index: Dec 1980 -Dec 2023

International Equities

2.00%

6.62%

8.62%

MSCI EAFE Index: Dec 1973 - Dec 2023

Emerging Markets

2.00%

7.45%

9.45%

MSCI Emerging Market Index: Dec 1987 - Dec 2023

Real Estate

2.00%

7.35%

9.35%

MSCI US REIT Index: Dec 2009 - Dec 2023

Government

3.89%

0%

3.89%

10 Year Treasury Bond: Dec 1999 - Dec 2023

Municipal

4.35%

0%

4.35%

Bloomberg Municipal Bond Index: Dec 1999 - Dec 2023

Corporate

4.05%

0%

4.05%

Bloomberg US Aggregate Bond Index: Dec 1999 - Dec 2023

High Yield

6.33%

0%

6.33%

ICE BofA US High Yield Index: Dec 1999 - Dec 2023

International Bonds

4.05%

0%

4.05%

Bloomberg US Aggregate Bond Index: Dec 1999 - Dec 2023

Cash

1.66%

0%

1.66%

3 Month Treasury Bill: Dec 1999 - Dec 2023

Other

2.00%

9.10%

11.10%

Use S&P 500 as Proxy

Option to use forward-looking return assumptions in RightCapital

Many financial institutions provide forward-looking return assumptions. Below is summary information from JP Morgan's Long-Term Capital Market Assumptions. You can review the detailed JP Morgan report here ↗️. Other financial institutions provide long-term capital market assumptions.

Asset Class

Interest

Dividend

Capital Gain

2024 Total Return

Large Growth

2%

5.00%

7.00%

Large Value

2%

5.00%

7.00%

Mid Cap

2%

5.60%

7.60%

Small Cap

2%

5.20%

7.20%

International Equities

2%

7.70%

9.70%

Emerging Markets

2%

6.80%

8.80%

Real Estate

2%

5.50%

7.50%

Government

3.90%

0%

3.90%

Municipal

4.00%

0%

4.00%

Corporate

5.80%

0%

5.80%

High Yield

6.50%

0%

6.50%

International Bonds

4.00%

0%

4.00%

Cash

2.90%

0%

2.90%

Other

2%

5.00%

7.00%

To utilize forward-looking assumptions, click into the fields to modify and enter the preferred data in the Assumptions tab of the Advisor Portal or within the Gear Icon > Settings > Return Assumptions of a specific plan.

Custom asset allocations

Creating your asset return assumptions is easy! Click on the field to modify and enter a new number reflecting your advising philosophy.

As a bonus, RightCapital provides complete control over Inflation assumptions, real estate transaction costs, and assumptions around the costs associated with the death of a loved one.

Considerations to set up your return assumptions

It is essential to set your return assumptions for your clients and review them periodically. Using historical data to set return assumptions provides a systematic approach to factoring the historical experience data into your financial projection. Using a forward-looking approach allows you to incorporate more subjectivity into the projection.

Client-specific return assumptions

Advisors have the ability to adjust return assumptions on the individual client level within a particular client plan. To do this, open the plan and navigate to the Gear Icon > Settings > Return Assumptions tab.
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