Important Note -- Equitable Advisors believes that education is a key step toward addressing
your financial goals, and this material is designed to serve simply as an informational and educational
resource. Accordingly, this material does not offer or constitute investment advice and makes no direct
or indirect recommendation of any particular product or of the appropriateness of any particular
investment-related option. Your needs, goals, and circumstances are unique, and they require the
individualized attention of your financial professional. But for now, take some time just to learn more.
Your Financial Plan
Your Plan was generated by eMoney, a web-based analysis system owned and operated by eMoney Advisors,
LLC. Your financial professional is an investment adviser representative of Equitable Advisors, LLC.
As described in more detail below, Equitable Advisors, LLC is not affiliated with or under common ownership,
control or operation with eMoney Advisors, LLC.
The output in your Plan is based on the input and assumptions that you provided and/or selected.
In addition, the account values are based on the most recent information available for download from
the websites of the financial institutions that you identified as administering your accounts.
*Note: If you chose needs analysis services only your financial professional acted not in the capacity
of an investment adviser representative but as a registered representative of Equitable Advisors, LLC,
FINRA member broker/dealer, All references made in this disclaimer to your “Plan” shall mean your needs
analysis plan (“Analysis”) and not a full financial plan. Your Analysis is expressly limited to the
financial issues or “modules” you have selected and is not an all-encompassing comprehensive analysis
of your financial position. As a result, your Analysis is not a “financial plan” and is not investment
advisory in nature. You have determined, with the help of your financial professional, which financial
issues should be addressed to best meet your current needs. The output in your Analysis with respect
to each selected module will be general in nature and will not provide the detail that would generally
be provided in a financial plan or investment advisory relationship. Please ask your financial
professional if you would like more information regarding these distinctions or if you are interested
in receiving a more comprehensive analysis of your financial position, including a financial plan, which
is generally available through Equitable Advisors for a fee.
The Purpose of Your Plan
Your Plan is designed to help you better understand your current financial position, identify your
financial goals and needs, and begin to develop general strategies to accumulate and manage your assets
to meet those goals and needs. The Plan is intended to provide only broad, general guidance and will
not entail any advice, analysis, recommendations or the execution of any purchase or sales of specific
securities or other investment or insurance products recommendations. The quality of the guidance
largely depends on the accuracy and reliability of the information that you have provided. Please review
the Plan carefully to make sure it accurately reflects that information.
Your Plan may cover a broad range of financial issues. Please note, however, that it is not all
encompassing. You have determined, with the help of your financial professional, which financial
planning issues should be addressed to best meet your current needs. Some of the issues you and your
financial professional have discussed are described in more detail than others.
Through the planning process, neither your financial professional(s), Equitable Advisors nor any other
entity involved in the process render accounting, tax or legal advice, and no portion of any fees for
services rendered to you relate to accounting, tax or legal services. If such services are necessary,
they are your responsibility. Your financial professional(s) can work with other professionals you
designate in this regard.
If you receive financial planning or needs analysis services related to a qualified retirement plan
that is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
applicable provisions of the Internal Revenue Code (collectively, “qualified plans”), you understand
that Equitable Advisors and its affiliates and financial professionals are not “fiduciary advisor(s)” as
defined under ERISA or otherwise and will not act as fiduciaries when performing any financial planning
or needs analysis services on your behalf. In addition, Equitable Advisors and its affiliates and financial
professionals are not being paid for any financial planning or needs analysis services from qualified
plan assets and, therefore, are not fiduciaries with respect to any such qualified plan under ERISA or
otherwise. Any participant investment education materials that are provided by Equitable Advisors or its
financial professionals to assist individuals with respect to retirement or their qualified plan assets
will be general in nature and limited, in accordance with Department of Labor Interpretive Bulletin 96-1,
to: (1) general plan information, i.e., information regarding the plan itself and investment options
available under the plan, (2) general financial and investment information, e.g., information and
materials that inform a participant about general financial and investment concepts, (3) general asset
allocation models, including information and materials that provide a participant with models, of asset
allocation portfolios of hypothetical individuals with different time horizons and risk profile, and (4)
interactive investment materials, which may include questionnaires, worksheets, software and similar
material that provides the means for participants to independently estimate future retirement income needs
and assess the impact of different asset allocations. None of the financial planning or needs analysis
services any such individual will receive are intended to constitute an “employee benefit” under ERISA.
Your Plan is based on the information you have provided. However, your financial professional has not
independently verified this information, and your financial professional is not responsible for any
incorrect information you have provided. Please review this information carefully and, before you accept
this Plan, discuss any questions you may have with your financial professional.
This Plan provides you with an overview of certain aspects of your financial situation, needs and goals,
as determined by information you have supplied. This Plan is not meant to be all-encompassing; it is meant
to be an estimate of your current situation. For instance, the Plan may not reflect all your holdings or
transactions, their cost, or proceeds received by you.
A Few Words About Assumptions
None of us can know what the future will bring. To engage in any meaningful financial planning or
needs analysis, however, it is necessary to make some “assumptions” about what might occur, including
how much we will be able to save, how our investments and the economy will perform, what things may cost
in the future, etc. The quality of this Plan is dependent on numerous assumptions about the future, many
of which you have supplied or selected. Your financial professional assisted you in selecting certain
assumptions. Please carefully consider the impact of your selections on your Plan and carefully review
your choices with your financial professional if you have any questions or concerns prior to accepting
It is highly unlikely that all of the assumptions in your Plan will turn out to be correct regardless
of how they are selected or where they appear. Indeed, it is quite likely that many will prove to be
incorrect. That is why this Plan comes with no guarantees. Even small changes in actual results compared
to Plan assumptions can have significant consequences, particularly over long periods of time. As a result,
there is no assurance that you will attain any of the results illustrated in this Plan, or even if you do,
that you will meet the objectives you have identified.
Calculations, Illustrations, and Estimates
Your Plan contains numerous calculations, illustrations and estimates. These include, among other
things: hypothetical illustrations of potential income or expenses; estimates of asset accumulation or
growth; and estimates of benefits under government programs (e.g., Social Security), pension plans or
insurance or other contracts. These, too, are assumptions about what may or may not happen in the future.
They are not predictions nor are they guarantees. For example, no one knows what the future of Social
Security will be or whether a company that is obligated to pay a benefit will have the financial ability
to do so when the time comes. In addition, whether and to what extent you will actually realize any of
the benefits that are illustrated in the Plan typically depends on whether you satisfy eligibility and
other requirements. If you do not, and there are many reasons why you might not, there will likely be
a gap in your Plan. Again, the calculation, illustration or estimate of any asset or benefit in this
Plan provides no assurance or indication that it will be realized or that you will meet any eligibility
requirements. Also, unless otherwise specified, your financial professional did not analyze any insurance
or other contract, pension or other benefit plan, asset or investment, and any such analysis is typically
beyond the scope of this Plan. Accordingly, nothing in this Plan is intended to be an express or implied
endorsement of the adequacy or quality of any such contract, plan, asset or investment, or of the financial
strength of any issuer or any other party.
The Social Security benefit function in eMoney does not automatically calculate a Social Security benefit
for a non-working spouse. Further, it does not automatically calculate a Social Security benefit for a
dependent child of an eligible retiree. If Social Security is "estimated from income" for the working
spouse, your financial professional must "manually specify" the non-working spouse's benefit. Failure to
account for the aforementioned benefits could lead to an overestimation of the amount needed to achieve
the retirement goal or life insurance need.
The eMoney system currently does not calculate the taxation of Social Security benefits as legislated.
Benefits are fully taxed without consideration of MAGI thresholds, which may result in a higher estimated
tax than would otherwise be applicable. Please ask your financial professional for more information on
how this may affect your plan.
Alternative Minimum Tax (AMT)
The Alternative Minimum Tax calculations provided by eMoney are cursory estimates that are not intended
to be relied upon as accurate calculations of the actual AMT tax that may be due. This system only
allows adjustments for itemized deductions and incentive stock options. Other adjustments and preference
items, such as depreciation recovery, tax-exempt interest, intangible drilling costs, mining exploration,
farm losses, passive losses, etc., cannot be entered and accounted for due to input limitations. Please
consult your tax advisor for an accurate calculation of your AMT.
Consolidated Reporting (Financial Plans Only) The consolidated report is provided for informational purposes as a courtesy to you. All reports should
be reviewed in conjunction with your fact summary and this Disclaimer page. Additionally, this report
may not reflect all holdings or transactions, their costs, or proceeds received by you. It may contain
information on assets that are not held at the broker/dealer with whom your financial representative is
registered. As such, those assets will not be included on the broker/dealer’s books and records. It is
important to compare the information on this report with the statements you receive from the custodian(s)
for your account(s).
Consolidated reporting provided via eMoney Advisors, a third party data aggregator under contractual
agreement with your Financial Professional. This consolidated report is based on custodian(s) and/or
Financial Professional provided account detail and is provided for information purposes only and as a
customer courtesy. Account information contained within this report has been provided by the custodian
directly, your Financial Representative or, in the alternative, via third party data provider, and may
include assets that Equitable Advisors does not hold on your behalf (“held away” assets) and therefore are not
included on Equitable Advisors books and records. In most instances, “held away” assets may be non-verifiable by
Equitable Advisors and may not be covered by SIPC. The accuracy of the information contained in consolidated
reports cannot be guaranteed. You are encouraged to review and maintain your official account statement(s)
(“source documents”) provided by your account custodian(s). These source documents may contain notices,
disclosures and other important information and may also serve as a reference should questions arise
regarding the accuracy of the information in this consolidated report. We encourage you to compare source
documents to consolidated reports and contact your Financial Professional immediately if discrepancies occur.
Always refer to these source documents for lending, legal or tax purposes.
Valuation of Assets
As noted above under "Consolidated Reporting," the accuracy of the valuation of assets in your Plan
report is not guaranteed. Further, the values shown in an Analysis report for your assets are based on
information supplied by you. No independent effort to validate these values has been made, and nothing
in the Plan should be construed as evidencing any opinion or guarantee of the accuracy or reasonableness
of any such values. Some assets, including assets for which there is no ready and active market, are
particularly difficult to value. Some examples of such assets are closely held businesses, interests
in partnerships or other non-publicly traded securities, many collectibles, some stock option contracts,
etc. The absence of a ready and active market also makes these assets difficult to liquidate (and/or
reduces the amount that you might realize) in the case of an emergency or other need. Also, it is
particularly difficult to estimate what these assets might be worth in the future since historical
data may be unavailable or even less reliable than for publicly traded stocks or bonds. While you are
free to include such assets in your Plan (and a growth rate you specify to estimate their future value
will be utilized), you should be particularly cautious when selecting values and growth rates for such
assets and in relying on such assets to meet future needs.
Life Expectancy Assumptions
More people are living into their nineties and beyond and while average life expectancy temporarily dropped
due to the worldwide pandemic, the long term forecast is for continued increases. While no financial plan or needs analysis
can guarantee that you will not outlive your money, the life expectancy assumptions that you make (e.g.,
in retirement planning) should take into account demographic trends. Please review the life expectancy,
as well as other assumptions used to create your Plan, carefully before you accept delivery of the Plan.
In general, the longer the life expectancy you select, the more assets your Plan will show you will need
to accumulate in order to maintain a given standard of living in retirement.
If your financial professional is providing only needs analysis services please note that the life
expectancy assumptions and related information in your Analysis are solely for the purpose of helping
calculate your insurance needs and are not to be used for any other purpose, including but not limited
to any evidentiary purpose in a legal proceeding.
A final thought on life expectancy: With increasing longevity may come increased medical and related
costs such as long-term care. Long-term care coverage may help address certain of these related costs,
particularly during retirement. You are encouraged to consider such coverage as part of your planning
Human Life Value
Please note that the Human Life Value Analysis is solely for the purpose of helping calculate life
insurance needs and is not to be used for any other purpose, including but not limited to determining
damages in a legal proceeding based on the death of a client or any other individual.
Your Estate Analysis (Financial Plans Only)
Your Plan may include a cursory estate analysis, which is designed to illustrate hypothetical costs
of settling your estate as it is currently arranged. It may also describe some of the more popular
general estate planning techniques that may help reduce those costs. Your financial professional may
choose to utilize an estate analysis in order to determine your potential exposure to estate taxes.
Please note that estate planning, particularly for high wealth persons, is a highly individualized and
personal process, and there is no one right answer or approach. Also, each planning technique has
requirements that your Plan will not address but that must be met under the tax law in order to be
effective. The estate analysis in your Plan is cursory and is intended to provide only broad general
guidance that may be helpful in informing your thinking about your estate planning needs and in discussing
those needs with your personal tax, accounting and legal advisors. Neither this Plan nor Equitable Advisors,
LLC, our financial professionals or any other party that assisted in preparing or delivering your Plan
provide tax, accounting or legal advice. You are strongly encouraged to seek such advice from your personal
tax, accounting and legal advisers.
As you review your estate analysis, keep in mind that all of the calculations, illustrations, estimates,
assumptions and other aspects of the analysis are subject to the same limitations and qualifications as
the rest of your Plan and as described throughout this Introduction. Please note that the actual costs of
settling your estate are dependent on, among other things, the timing of your death (and, in the case of
joint estates, the timing of the death of your spouse), the type and value of assets that are in your estate
at death, and tax and other laws then in effect, none of which are currently known. Accordingly, it is not
possible to accurately predict the actual costs of settling your estate. In fact, those costs may (and
typically will) be substantially different than any illustrated costs. It is also not possible to predict
the savings that may result from various planning techniques. As a result, you may wish to periodically
update this analysis as your circumstances or the law changes and you are strongly urged to review your
estate plan with your tax, accounting and legal advisers.
Rates of Return
Be aware that, regardless of the rate used in your Plan, it is likely that your actual rate of return
will be different than your selected expected return. There is no assurance that the expected return
will be met. If your actual return is higher than the rate you have selected, you will likely accumulate
more assets than the Plan estimates, all other things being equal. Conversely, if it is lower, you will
probably accumulate less, meaning that you may have to save more or longer to meet your goals.
Also be aware that the targeted rates of return assume that you will promptly make adjustments to your
portfolio to conform to the models suggested and that those adjustments will not trigger taxes, penalties,
or other costs that would reduce the amount available for reallocation. If you do incur taxes, penalties
or other costs (which is beyond the scope of the Plan to identify), your capital available for
reinvestment will be reduced by such amount, which will likely reduce the amount you will accumulate
over time, all other things being equal.
If you have requested a needs analysis only, you have selected certain assumptions about the average
rates of return you may realize on your investments. Be aware that, regardless of the rate used in your
Analysis, it is likely that your actual rate of return will be different than your selected expected
return. You are strongly cautioned not to select overly-optimistic rates of return for your investments
and assets, as this could generate assumed gains in excess of gains you are likely to achieve and could
affect other parts of your Analysis. Please be sure to discuss any questions you have regarding rates of
return with your financial professional prior to selecting any assumptions.
Your Asset Allocation Analysis (Financial Plans Only)
Generally, your Plan may include an asset allocation analysis, which is intended to provide general
guidance in determining an appropriate asset allocation strategy or strategies. Each asset allocation
strategy is based on the general planning objectives you have identified and your attitudes about risk as
measured by your responses to our risk tolerance questionnaire. An asset allocation proposal will be
illustrated for your financial goals. Like the Plan, the quality of the asset allocation analysis is
dependent upon the accuracy and reliability of the information you have provided. Also like the Plan it
comes with no guarantees. The suggested asset mixes illustrated in the analysis are based on the concepts
of Modern Portfolio Theory, which applies the use of strategic asset allocation which seeks to construct
an optimal portfolio taking into consideration the degree of risk appropriate for you. Properly allocating
your investment dollars among various asset classes can potentially reduce the variability in returns
associated with single investment types and may smooth out returns over time. Diversification does not
guarantee a profit or protect against loss in a declining market.
Asset classification information may be included herein. Such information may be derived from one or
more publicly-available sources, which are generally believed to be reliable. The asset allocation analysis
identifies the “current” diversification of your portfolio by asset class. The actual risk / return profile
of your assets may be different than what we have assumed. Your analysis may also provide a recommended
reallocation which illustrates an asset allocation model that statistical models suggest will better align
potential portfolio risk and potential return, in light of your risk tolerance. The asset allocation
methodology used is provided by Ibbotson Associates. Ibbotson Associates developed the inputs for broad asset classes (expected
returns, standard deviations and correlation coefficients) using historical data, current market information
and capital market expectations. The asset class inputs are then used to develop model portfolios through
the statistical techniques of Mean-Variance-Optimization and Re-sampling. The Ibbotson Associates models tend to
overweight domestic "value" equities over "growth" equities reflecting domestic "value" equities’
superior historical risk adjusted returns. Domestic "value" equities represent publicly traded stocks that
are generally considered to have lower price to book (P/B) and price to earnings (P/E) ratios and a higher
dividend ratio than "growth" equities. Keep in mind, other investments not considered may have
characteristics similar or superior to those being analyzed.
A word of caution:
The return and principal value of any investment in stocks will fluctuate with changes in market conditions.
Bond investments are subject to interest rate risk so that when interest rates rise, the prices of bonds
can decrease and the investor can lose principal value. High-yield debt securities have a greater risk of
default and are more risky than investment-grade debt securities. High yield bonds are also subject to a
high degree of credit and market risk.
Stocks of small and mid-size companies have less liquidity than those of larger companies and they are
subject to greater price volatility than the overall stock market. Smaller company stocks involve greater
risk than is customarily associated with more established companies.
International securities carry additional risks, including currency exchange fluctuation and different
government regulations, economic conditions and accounting standards. The value of a portfolio’s investment
in foreign securities may fall, due to adverse political and social developments abroad. These risks are
generally greater for investments in emerging markets than in more developed countries. Focusing on one
economic sector increases the vulnerability to any single, political or regulatory development.
In addition to the general risks involved in real estate investing, REIT investing entails other risks
such as credit and interest rate risks.
Alternative investments can be illiquid, may disproportionately increase losses and may have a potentially
large impact on portfolio’s investments.
The asset allocation analysis does not take account of the potential costs of reallocating assets
(including, among others, tax consequences of liquidating existing assets, surrender or withdrawal charges,
and commissions or fees to purchase new investments). These costs can be substantial and may outweigh the
benefits of any reallocation - something that is beyond the scope of the Plan to identify. You should make
sure that you understand all of the costs (which may require that you consult with your legal, accounting or
tax advisors) before reallocating existing assets. The targeted return, risk, and other figures used in both
the “current” and “proposed” asset allocation are based in part on the historical returns, risk and
relationships of asset classes, as measured by various indices. Please note that using historical data has
limitation and past performance does not guarantee future results. The performance of an unmanaged index
is not indicative of the performance of any particular investment. Individuals cannot invest directly in
an index. Past performance is not indicative of future results. The projections utilize return data that
do not include fees or operating expenses, are not available for investment, and are shown for illustrative
purposes only. The current economic environment, interest rate and dividend yield, as well as various
subjective factors, are also used to calculate the targeted return figures. Ibbotson Associates uses the current
interest rate, which is the coupon or interest from fixed income instruments as a percentage of the price
paid for the respective instrument and the historical dividend yield, which is the dividend paid by various
equity investments over a certain time period as a percentage of their market price to as inputs to
calculate the targeted return figures.
The targeted figures and the data used to develop them are based on broad asset classes and not on any
particular investment, the performance of which can vary widely from that of an asset class. Of course,
there is no guarantee that any of these targets will in fact be realized in the future on either the
portfolio or any particular investment. Similarly, no asset allocation can protect against all risks
and there is no risk assurance that if you reallocate your assets that you will increase your return or
decrease your risk. The tax rate applied to derive the After Tax Targeted Rate of Return is based upon
the information you have provided.
Stock Options (Financial Plans Only)
Please note that the stock option reports are hypothetical in nature. The calculations are based on
the current value of the selected option’s underlying stock and a projected growth rate that you have
selected for purposes of this report. The actual growth, if any, will typically not follow a steady
growth pattern as depicted in your stock option report.
Note that it cannot be predicted what value, if any, the options will have at the time you may exercise
them. If the underlying stock is below the strike price of the option on the expiration date, the options
will expire without value.
Your financial professional may choose to utilize the time value of your stock options in the Plan,
as opposed to their intrinsic value. Please ask your financial professional if you would like more
information regarding this distinction and how it may affect your stock option calculation (if any).
In addition, please note that the exercise of options may result in a taxable event. You should consult
with your tax adviser regarding possible tax implications before deciding when and how to exercise any
We Do Not Provide Legal, Accounting or Tax Advice
Please be advised that this document is not intended as legal or tax advice. In addition, U.S.
Treasury Regulations require us to inform you that “any tax information provided in this document is
not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding
penalties that may be imposed on the taxpayer. The tax information was written to support the promotion
or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular
circumstances from an independent tax advisor.”
Having a Plan is Just the Beginning
Although clients who take the time to develop a plan may be better equipped to meet their financial
goals than those who do not, having a plan is only the beginning. Of equal, if not greater importance,
is taking steps to implement the plan. Your Plan will in no way obligate you to purchase any products
or take any specific actions through your financial professional, Equitable Advisors, eMoney, or any other
party. However, if you do choose to implement your plan (with or without the help of your Equitable Advisors
financial professional), you should consider putting your Plan into action with a sense of urgency. In
part, this is because of the power of compounding interest. Also remember that financial planning or
having a financial needs analysis is not an “once-in-a-lifetime” event. It is an ongoing process.
Make sure to review your Plan regularly and update it as appropriate. It is recommended that you do so
at least once a year, as well as any other time that your personal circumstances or external factors
If you choose only to have financial needs analysis and not a complete financial plan please remember
that your Analysis is expressly limited to the financial issues or “modules” you have selected and is
not a comprehensive “financial plan” or investment advisory in nature. The output in your Analysis with
respect to each selected module will be general in nature and will not provide the level of detail that
would generally be provided in a financial plan or investment advisory relationship.
Implementation and Conflicts
Should you wish to implement your Plan through your Financial Professional, both the firm and the
Financial Professional may receive compensation in the form of fees, commissions or sales credits on
any of the products purchased or sold as part of implementing your Plan. Any product specific
recommendations will be made in the Financial Professional’s capacity as a registered representative
and not in an advisory capacity. Upon delivery of the Plan, the advisory relationship created by the
planning services engagement will terminate. You are under no obligation to implement this plan at
Equitable Advisors and you should be aware that the commissions will vary by product and may create an incentive
for your Financial Professional to recommend one product over another. Sales of proprietary products may
provide additional compensation to Equitable Advisors and/or financial professional(s),
Securities offered through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors in MI & TN).
Investment advisory products and services offered through Equitable Advisors, LLC, an investment advisor registered with
the SEC. Annuity and insurance products offered through Equitable Network, LLC and its insurance agency
subsidiaries. Equitable Network, LLC does business in California as Equitable Network Insurance Agency of California,
LLC and, in Utah, as Equitable Network Insurance Agency of Utah, LLC and, as Equitable Network Insurance Agency of
Puerto Rico, Inc.
Equitable Advisors and its financial professionals are compensated differently for the sale of various products.
Sponsors may provide additional compensation to Equitable Advisors which may create an incentive for financial
professionals to recommend one product over another. Please feel free to ask questions regarding our
obligations to you and your rights, including any conflicts of interest.
Equitable variable life insurance and annuity products are issued by Equitable Financial Life Insurance
Company (NY,NY) and co-distributed by Equitable Advisors, LLC and Equitable Distributors, LLC. Equitable Financial Life
Insurance Company, Equitable Advisors and Equitable Distributors are affiliated companies located at 1290 Avenue of
the Americas, NY, NY 10104.
Are Not Deposits of Any Bank;
Are Not FDIC Insured;
Are Not Insured by Any Federal Government Agency;
Are Not Bank Guaranteed;
May Go Down In Value.
An index is a group of securities with similar investment characteristics combined to create a
benchmark against which performance of a specific security is measured. An index does not represent
any single asset but rather an entire group of assets. One cannot invest directly into any index.
Indices are unmanaged and returns assume the reinvestment of all dividends. Past performance is no
guarantee of future results.
A model portfolio is made up of a mix of asset classes and those asset classes are tied to appropriate
A recommended portfolio is derived from the completion of a risk tolerance questionnaire with scoring
that is associated to a model portfolio.
Simple average, equal to the sum of all values divided by the number of values.
Rate of Return:
The average annual return for the number of years shown.
A statistical measure of the volatility based on the distribution of a set of data from its mean (average value). Example: A portfolio with an average return of 10% and a standard deviation of 15% would return a result between -5% and +25% the majority of the time (68% probability or 1 standard deviation), almost all the time the return would be between -20% and +40% (95% probability or twice the standard deviation). If there were 0 standard deviation then the result would always be 10%. Generally, more aggressive portfolios have a higher standard deviation and more conservative portfolios have a lower standard deviation.
Large Cap Growth -
The benchmark used for Large Cap Growth is the Russell 1000 Growth Index. This index measures
the performance of the large-cap growth segment of the U.S. equity universe. It includes those
Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Large Cap Value -
The benchmark used for Large Cap Value is the Russell 1000 Value Index. This index measures the
performance of the large-cap value segment of the U.S. equity universe. It includes those Russell
1000 companies with lower price-to-book ratios and lower expected growth values.
Mid Cap -
The benchmark used is the Russell Midcap Index which measures the performance of the mid-cap
segment of the U.S. equity universe. The Russell Midcap Index is a subset of the Russell 1000®
Index. It includes approximately 800 of the smallest securities based on a combination of their
market cap and current index membership.
Small Cap -
The benchmark used is the Russell 2000 Index. This index measures the performance of the
small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell
3000® Index represents approximately 8% of the total market capitalization of that index. It includes
approximately 2,000 of the smallest securities based on a combination of their market cap and
current index membership.
International Stocks -
The benchmark used for International Stocks is the MSCI EAFE Index: This index tracks non-U.S.
stock funds (EAFE refers to Europe, Australasia, and Far East). The EAFE Index is an aggregate of
21 individual country indexes that collectively represent many of the world’s major markets.
Taxable Debt Asset Classes:
Aggregate Bonds -
The benchmark used for Aggregate Bonds is Barclays Capital Aggregate Index. This index is a
Market-value-weighted performance benchmark for investment-grade fixed-rate debt issues,
including government, corporate, asset-backed, and mortgage-backed securities, with maturities of
at least one year.
Aggregate Muni -
The benchmark used is the Barclays Municipal Bond Index. This index is a broad-based, total return
index. The Index is comprised of 8000 actual bonds. The bonds are all investment-grade, fixed-rate,
long-term maturities (greater than two years).
Other Asset Classes:
Cash Equivalents -
The benchmark used for Cash Equivalents is the Citigroup U.S. Domestic 3 Month Treasury Bill
Index which is government guaranteed and offers a fixed rate of return. Return and principal of
stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term
fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S.
Alternative Investments -
The benchmark used for Alternative Investments is the Credit Suisse/Tremont Hedge Fund Index.
This index is broadly diversified, encompassing 481 funds across ten style-based sectors, and
representative of the entire hedge fund industry.
Domestic REITs (Real Estate Investment Trusts) -
The benchmark used for Domestic REITS is the FTSE NAREIT Equity REIT Index. This index is a
Market-capitalization-weighted index that includes healthcare and net lease REITs but excludes real
estate operating companies. There is no minimum size or liquidity requirement for an equity REIT to
be included in this index.