Option #3

Option #3 is designed to compare a client’s average Portfolio Rate of Return to their Required Rate of Return.

• Portfolio Rate of Return – This value is calculated by RazorPlan to demonstrate a static Rate of Return for the life of the analysis. This Portfolio Rate of Return will provide the same results as the Rates of Return entered through Data Entry. For example, you can enter 4 different Rates of Return for each of the available Risk/Return areas; Pre-Retirement and Post-Retirement, Registered and Non-Registered assets. The software would then calculate the static Rate of Return required to produce the exact same results at the end of the analysis.
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• Required Rate of Return – Based on the same calculation for Portfolio Rate of Return above, Required Rate of Return demonstrates the static Rate of Return required to eliminate future excesses or deficiencies at the end of the analysis.

Depending on whether the client is in an excess or deficiency situation, the difference between Portfolio Rate of Return and Required Rate of Return represents the change needed to balance the clients’ future Retirement Income Needs.

*The software will not recommend a negative return for clients with more liquid assets than required.

!Actual content may vary depending on client situation.