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What do the affordability color ratings mean within Path?

We built a rating system to help you understand how well (or poorly) each new goal fits into your current plan, since financial planning is all about understanding how your goals impact your long-term plans.

The rating system has four categories: comfortable, manageable, a stretch, and unaffordable.

Comfortable. If a goal is comfortable, it has little-to-no impact on your planned retirement and other goals. In other words: go ahead and make it happen!

Path also considers goal-specific factors that impact affordability (e.g., when buying a home, we consider your ability to qualify for a mortgage).

Manageable. If a goal is manageable, you can afford it if you adjust your retirement or other goals (maybe a little, maybe a lot). This is a good opportunity to reflect on your priorities and explore how your goals impact each other.

Path also considers goal-specific factors that impact affordability (e.g., when buying a home, we consider your ability to qualify for a mortgage).

A stretch. If a goal is a stretch, it has a significant impact on your retirement and other goals, and may cause you to run out of money too early. You may want to consider adjusting your plan.

Path also considers goal-specific factors that impact affordability (e.g., when buying a home, we consider your ability to qualify for a mortgage).

Unaffordable. If a goal is unaffordable, you may not have the cash to buy within your planned timeline, or the purchase may prevent you from ever retiring. If that doesn’t seem right, make sure you’ve linked all of your accounts and consider adjusting your plan.

Path also considers goal-specific factors that impact affordability (e.g., when buying a home, we consider your ability to qualify for a mortgage).

Please see our methodology for more details.

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Path is a sophisticated personal finance model offered by Wealthfront that allows Clients to plan for the future and explore projections of various possible financial outcomes. The projections in Path are estimates based on Clients’ latest data from linked financial accounts, tolerance for risk, and current investments, as well as assumptions compiled by Wealthfront’s Research team.

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.

Wealthfront Inc., an investment adviser registered with the SEC, prepared this blog post for educational 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.