Today I'm happy to announce changes in the RATES/YIELDS/CURRENCIES section.
These mostly apply to advanced users who enter and follow their individual investments.
1. Setting default expected rates of return by asset classes.
If you've used this feature before you'll notice we have expanded the asset classes considered.
The rates entered will now be used to automatically set expected rates of return when investments are first entered, or first imported from Wealthica.
The defaults have been set to the FP Canada long-term recommendations but you can change those defaults and save them.
You can use them to change the default rates for all your investments at once at any time. You can now also opt-out any investment you never want changed by this feature.
2. Setting Long-Term future expected rates of return.
This allows you to set the TIME MACHINE to switch to long-term rates of return by asset class starting a given number of years in the future for all your investments.
This is an important new feature that permits simultaneous short-term and long-term financial planning.
It allows you to plan for shorter-term goals like buying a house, in conjunction with longer-term goals like retirement (or a later stage in retirement).
Many of my users are investors who follow their investments closely, including short-term investments with much higher or lower rates of return than the FP Canada™ projected long-term rates.
They want the rates to reflect their own expected returns for the short term, and see those reflected in the short-term projections.
However, by allowing long-term projected rates to start from a later date, we can also obtain a reasonable long-term financial plan.
3. The Withdrawal Optimizer now allows changes in future rates.
The motivation to implement varying rates in the Withdrawal Optimizer came about because of the new feature to automatically switch to long-term rates in the TIME MACHINE.
You can now optimize any TIME MACHINE run that uses that feature, anywhere you have set future rates manually in the Rates table,
and it even runs with market-crash scenarios and market simulations (although the usefulness of this on such simulations is doubtful).
Please see the expanded RATES/YIELDS/CURRENCIES section (7.1) of the eBook for details. Let me know if you have questions.
Happy holidays everyone!
