Transcript
This training explains how to adjust investment growth assumptions over time by stepping down growth rates or changing asset allocation at retirement. This approach helps advisors model more conservative investment behavior as clients transition from accumulation to retirement.
Learning Objectives
By the end of this training, you will be able to:
Apply a stepped growth rate to an investment account.
Adjust growth assumptions at a specific life event, such as retirement.
Modify asset allocation growth using step timing.
Verify changes in the Investments view.
Step 1: Step Down a Fixed Growth Rate at Retirement
Navigate to Savings & Investments.
Open the investment you want to adjust (e.g., a Tax-Free Investment).
Go to the Growth section.
Review the current growth rate (e.g., 5%).
Turn on Steps and click Add Step.
In the Growth settings:
Enable stepped growth.
Enter the new growth rate (e.g., 3.5%).
Go to the Timing section:
Select Retirement as the step event.
Click Done to save the step.
Click Done again to save the investment.
This ensures the investment grows at a lower rate once the client reaches retirement.
Step 2: Step Down Growth by Adjusting Asset Allocation
Open the next investment account (e.g., an Employer-Sponsored Plan).
Navigate to the Growth section.
Confirm the account uses a Custom Portfolio.
Turn on Steps and click Add Step.
In the Growth settings:
Enable Asset Allocation.
Adjust the allocation to reflect a more conservative portfolio.
Go to the Timing section:
Set the step event to Retirement (e.g., age 65).
Click Done to save your changes.
This method allows growth to adjust automatically based on the new asset mix rather than a single fixed rate.
Step 3: Verify the Changes
Navigate to Your View → Investments.
Review the pre-retirement growth rates:
These may show values such as 5.79% or 4.05% (growth net of fees).
Scroll forward to the retirement year.
Confirm that growth rates decrease at retirement, reflecting the stepped assumptions.
Best Practices
Use stepped growth rates to model more realistic post-retirement investment behavior.
Apply steps consistently across investment accounts for clearer client messaging.
Tie growth changes to meaningful life events (e.g., retirement) rather than arbitrary years.
Always review the Investments view to confirm timing and accuracy.
Getting Support
If you have questions or need assistance:
Click the client’s name in the top right corner.
Select Request Support.
Enter your question and share client access.
Key Takeaways
Stepped growth rates allow for more realistic long-term projections.
Advisors can adjust growth using either fixed rates or asset allocation changes.
Timing steps to retirement helps align modeling with client behavior.
Visual verification ensures confidence in your assumptions and recommendations.