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.
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