My client has some savings in a CD account earning a fixed rate of return. What’s the best way to model it?
One thought on “Modeling a fixed rate of return in cash flow based planning”
On the “Assets For Cash Flow” screen, when you enter a new investment account or update an existing one (by double clicking the account name in orange color), you have a radio button to either use a fixed rate of return on the account or have it driven from its underlying asset allocation model. If you choose the “fixed rate of return” option, then the Wealth Planner will not ask you to provide the asset allocation for the account.
On the “Assets For Cash Flow” screen, when you enter a new investment account or update an existing one (by double clicking the account name in orange color), you have a radio button to either use a fixed rate of return on the account or have it driven from its underlying asset allocation model. If you choose the “fixed rate of return” option, then the Wealth Planner will not ask you to provide the asset allocation for the account.