By Derek Moore
Within the ZEGA website you can launch the growth simulator.
We’ve now added the ability to add a spouse to get a more complete picture of how assets will progress over a lifespan. Within the growth simulator you can input things like their age, current assets, annual savings rates, retirement dates, and estimated rate of return along with risk tolerance.
You can even input when they will begin drawing social security and then the system will estimate the annual benefit or put in a manual estimate.
This section is brand new and enables you to build a hypothetical portfolio using categories like growth, aggressive alpha, alternative appreciation, hedged equity, and conservative.
Each of those builds in assumptions for hypothetical annual returns and you can adjust the percentages. Then you visually can see in both pie chart form and within a risk vs return efficient frontier graph. This helps to align what investors want or need vs potential portfolios.
You can even download it into a PDF.
Planning For Future Income and Expenses
Another benefit of the simulator is the ability to input future expenses or income in the year or years they will occur.
You can specify a range such as side hustle earning x dollars in 2025-2030. Or maybe that really cool aunt or uncle who plans to give you some money. Or the dreaded expense of college (assuming your son or daughter doesn’t get a full ride to Harvard).
Try it out today and let us know what you think!