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Learn MoreThese changes do not apply if your home office provides us with your own custom data or has previously defined a different historical data span.
Most notably, we’ve changed the “CPI” index has been changed to use 30 years of data instead of 77. See below for more on how this will impact your financial plans.
We’ve also:
Updating your indices will cause a meaningful change to this rate which in turn will create changes to your cash flow and Monte Carlo results. You should review previously built cases before presenting to clients to see if you are comfortable with the new results. You can accept these updates and then change the inflation rate back to its prior rate for clients where you deem appropriate.
Expect to see a reduction in the baseline CPI rate from 3.76% to 2.65% and a reduction in the Ibbotson 30-day US Treasury Bill of 3.74% to 1.25%.
No – as always, you manually initiate the update to index data. Also, all indices can be changed back manually if you wish to continue to using the former growth characteristics.
To revert back, after updating, simply navigate to your Investment Assumptions and select Model Portfolios then Market Indices. From here you can click on the Consumer Price Index and manually update the Rate of Return, Mean Rate, and Standard Deviation to the previous percentages.
The updates to historical data were largely driven by feedback from advisors like you. Additionally, the updated indices are better aligned with current market conditions and projected future growth.
Click here for a breakdown of how to update your market indices on a global level or for a single client.