Why does an account’s balance change by more or less than its expected return?
Where to find it: TIME MACHINE results → click the year
The change in an account’s balance includes deposits, withdrawals and fees as well as investment growth. A 4% return assumption does not mean the year-end balance must be exactly 4% above the starting balance.
Open the detailed TIME MACHINE report for the account and year. Compare the starting and ending balances with deposits, withdrawals, distributions and fees. Use the same dollar view throughout; a today’s-dollar balance also reflects the inflation adjustment.
Then review the investments’ return components. Capital appreciation, interest and dividends can all contribute to total return. Check whether a dated rate, long-term switch, future allocation or market scenario applies in that year. Distributions withdrawn from the account can explain a flat balance even when the investments produced income.
If growth is unexpectedly absent, check that the holding has a value, applicable yields and the intended valuation date, and that it has not been marked Ignore.