Return Scenarios

Customize Return Sequences for Client Plans

RightCapital gives you granular control over providing excellent advice to your clients. Part of this is the ability to see precisely what we mean by "Fed adverse year followed by modest growth". It also means being able to build your custom scenarios to provide tailor-made advising.

To access return scenarios, navigate to Advisor Portal > Models > Scenarios.

Pre-built scenarios

There are four existing return scenarios. By clicking on the name of each Scenario, the exact values of each asset category in each year are displayed.

1

Bad decade followed by slow growth.

2

Fed adverse scenario followed by modest growth.

3

Strong growth scenario

4

Flat 0% Return

Most scenarios level off after 10 years. Slow growth resolves to a steady 2% growth; moderate growth is 4%; strong growth is 8%.

Create your scenarios

To create your return scenario, click Add Scenario. An item named New Scenario will be added at the bottom of the existing scenarios. Simply click on the title above the return values to change the name. Then, adjust the values of each asset category in each year to build your Scenario. After a scenario has projected returns for all 50 years, asset growth will continue at the rates specified in the final year of the scenario chart.
Don't forget to scroll to the bottom of the page (after year 50) and click Save.
Pro Tip
Use custom Scenarios to illustrate sequence of return risk. Set up one scenario with a big drop in year 1 and consistent returns thereafter, and set up a second scenario with the same returns but a drop in year 10 instead of year 1. You can show your client how it impacts their projection.

Quick Fill

When creating a custom return scenario, the Quick Fill button allows advisors to populate or clear information much more easily.

  1. Interpolate will automatically populate all 0% inputs between beginning and ending values listed. This feature saves time and helps to populate values more quickly.
  2. Clear all will reset all return scenario inputs to 0%.

Where to use return scenarios

Return scenarios are used in the Retirement > Analysis > Comparisons & Retirement Details tabs and the Retirement > Cash Flows module. For more details on the Comparisons & Income tab, click here. For further information on the Cash Flows module, click here.

Once a new scenario has been saved, you can access it using the drop-down menu on Comparisons or Cash Flows:

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