Use their guidelines https://www.moneyreadyapp.ca/forum/topic/128-2023-projection-assumption-guidelines or your own judgement.
I think I get it now. The versatility of the TM tool was confusing me... :-)
Long-Term Financial Planning (10+ years): what I'm doing:
- Create holding pots (TFSA-CAN-1, TFSA-CAN-2, RRSP-CAN-1, RRSP-CAN-2, RRSP-USA-1, RRSP-USA-2, LIRA-CAN-2 LIRA-USA-2) 1:me, 2: spouce.
- My broker (TD Webbroker) breaks down accounts by currency (CAN, USA) AND only provided Asset Allocations by account, thus the extended (from above currency-converged) pot list to allow me to easily enter that info for each TM ACCOUNT
- Click the "Change all investment rates of return at once" button to set the % per year return fields:
- (Income yield, Dividend yield, Capital appreciation growth rate, Capital distribution yield, Return of Capital distribution yield)
- Set values:
- CAN Accounts: (Income yield = 3.5% (HISAs & GICs), Dividend yield = 3.20%, Capital appreciation growth rate = 6.20% - 3.20% = 2.80%)
- USA Accounts: (Income yield = 3.5% (~ same), Dividend yield = 3.20%, Capital appreciation growth rate = 6.50% - 3.20% = 3.30%)
using these inputs from 2023 Projection Assumption Guidelines and Google:
-
-
- Canada_Equities: 6.20%
- Canada_Fixed Income: 3.2%
- US_Equities: 6.50% (Foreign developed market equities - proxy for U.S. equities)
- US_Fixed Income: 4.5% (Google) - seems high, so using Canada Dividend yield of 3.20% above for USA Accounts.
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Short-Term Portfolio Management (<2 years): TBD: later or use Wealthica/Wealthscopr Add-On tools:
- Import detailed holdings via Wealthica
- Analyse, rebalance, adjust holdings based on generated reports, etc...
Thanks again for great support!