Tailor Growth and Inflation Expectations to Align with Your Firm's Outlook
Tolerisk allows you to customize key economic assumptions—such as inflation rates and investment return expectations—to better reflect your firm's strategic outlook or specific client circumstances.
How to Update Capital Market Assumptions
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Log in to your Tolerisk account.
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Click on the hamburger menu in the top-right corner.
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Select the Defaults tab from the dropdown menu.
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Navigate to the Capital Market Assumptions section.
Here are some things to note about this section -
- The inflation rate and both types of tax rates will be the default value in every risk assessment, but can be easily manually updated for each Tolerisk Pro assessment. (The Tolerisk EZ assessment does not offer this level of granularity).
- Inflation Rate is used to adjust Monthly Expenses, Social Security, and other cash flows that have the option to increase annually by inflation.
- The Growth Rate Spreads are percentages that will be subtracted from historical annual growth rates throughout the site when index data is used. These spreads for Stocks and Bonds can be used to account for the cost of investing, as well as to control the capital markets assumptions. For example, your clients may have a cost of investing of 1.5% annually, and you may want to make historical growth rates on bonds 0.50% more conservative than historical rates. In this case, you would use 2% for the Fixed Income spread.
- Only admin users can make changes to this section.
This video will walk you through the process of adjusting your capital markets assumptions-