Planning Assumptions

Our typical assumptions are:


  • 3.5% for inflation on income and expenses before age 60 and 3% thereafter
  • 3% for property and business growth
  • 0% for cash
  • 7% on investments before retirement and 6% thereafter
  • 4% inflation on college costs
  • 7% for college savings
  • 2% increases on Social Security benefits after they start
  • Life expectancy of age 95


You may specify any of these for your the growth rate category and/or realization model for taxation on nonqualified accounts. It’s best to have the plan be more conservative than the results your clients achieve.


You will find the planning assumptions outlined in each report right after the current financial position section to provide clarity as to what is reflected in the projections that follow.