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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.

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Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.

Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.