Every RightCapital account will include four "default" return scenarios, which are pre-built and available for use within each client plan:
A bad decade of volatile performance, leveling off to reflect slow growth for the remainder of the scenario.
Years 1-10 of the scenario are modeled after the S&P 500 index (equity) and Bloomberg Aggregate Bond Index (fixed income) from the year 2000 through 2009.
Years 11+ reflect 2% equity, 1% fixed income, and 0.25% cash returns (slow growth)
A four year hypothetical recession, leveling off to reflect modest growth for the remainder of the scenario.
Years 1-4 of the scenario are loosely modeled after the type of stress tests released by the Federal Reserve each year, to test the solvency of large financial institutions.
Years 11+ reflect 4% equity, 2% fixed income, and 0.5% cash returns (modest growth)
A good decade of mostly positive performance, leveling off to reflect strong growth for the remainder of the scenario.
Years 1-10 of the scenario are modeled to reflect positive market performance with fluctuating year-to-year returns. This is an original scenario developed by RightCapital.
Years 11+ reflect 8% equity, 4% fixed income, and 1% cash returns (strong growth)
Eliminates equity, fixed income, and cash returns for the duration of the scenario.
Return scenarios are able to be applied in several places within a client plan:
- When comparing two plans in the Retirement > Analysis > Comparisons tab
- When analyzing retirement details for a proposal, in the Retirement > Analysis > Retirement Details tab
- When curating a stock plan proposal in the "..." More Menu > Stock Plans > Analysis tab
- Optionally, return scenarios can be turned on within the Retirement > Cash Flows, by navigating to the Gear Icon > Settings > Methodology page, and checking the 'Allow display of scenario-specific cash flows' setting.
