Why aren't individual investments projected? (Lifetime Planner)

The Lifetime Planner projects the value of your entire portfolio rather than individual investments.

Why individual investments aren't projected

When you plan over a long period (e.g., 40 to 50 years), it’s unrealistic to expect that a particular investment will maintain the same rate of return. For example, if you own a bond with an 8% return maturing in 12 years, there’s no guarantee you can reinvest at the same rate. Likewise, stocks are volatile, and dividends may change.

The long-term planning approach

The Lifetime Planner helps you estimate the average rate of return for all your investments. Once you find a rate of return that works, your goal is to achieve that average across your investments. This approach accounts for the ups and downs of individual investments by considering the overall performance of your diversified portfolio.

Why this approach works

By averaging returns, your plan is more realistic and less dependent on the performance of any single investment. If one investment underperforms, diversification helps balance the average rate of return, making your plan more resilient.

Not Available in Canada

This tool is unavailable for users of our Canadian products.