We make 3 key assumptions to forecast how much you need to save and whether you are on track:
1- Your long-term expected annual rate of increase in income. This is key to forecast what your monthly payments will be over time.
2- Your long term estimated tax rate. This is key to estimate what your tax liability will be.
3- Your long-term expected annual rate of return on your savings. This is key to model what your minimum monthly savings amount should be at any point in time.
You can modify these assumptions as follows:
1- From your dashboard, go to “My Tracking” on the left-hand side.
2- Scroll down to the bottom of that page and click on “Update my assumptions”.
3- Click on the 3rd tab labeled “Update Assumptions”.