What do you assume about my investment returns?

We personalize our return projections to the specific assets you hold. In brief, our capital markets framework assumes that equities will grow at 5.8% annually and bonds at 2.7% annually, and we use a regression-based factor model to decompose financial instruments into their equity-like and bond-like components that each grow at these rates. For example, we project that an instrument that is exactly equity-like (and has no bond component) will grow at 5.8% per year, while an instrument that is exactly bond-like will grow at 2.7% per year.

For more details on our methodology, please log into your account and review the Path disclosures.