What are the primary limitations of the Investment Checkup?

The Investment Checkup is limited to the data you have aggregated and the profile information you have entered. There may be other important financial or personal information which is not considered. Examples include potential inheritance, or health issues. Also, you may have aggregated assets which we are unable to classify. These are excluded from the analysis of the Checkup. Due to these issues, the Checkup may not provide a full picture of your financial situation and/or goals.

 

The Allocation section is focused on high level asset class analysis only. Depending on the specific investments you own, your returns may deviate significantly from the representative asset class, especially if you have concentrated positions. For example, there is a big difference between owning only short term bonds or only long term bonds. Similarly, the Alternatives asset class is intended to represent a diversified mix of Real Estate Investment Trusts (REITs) and commodities. If you own all REITs, all gold, or other alternative investments such as options, this asset class may not correctly model your holdings.

 

Much of the analysis does not include taxes or fees, which can have a material impact. It is not possible to invest directly in an index without incurring expenses, which will lower the actual return.

The Investment Checkup analysis bases its predictions on historical data. Asset classes including stocks, bonds and alternatives may yield substantially lower actual returns in the future, including negative returns. 


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