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The basics
Inflation & returns sets the plan’s shared assumptions for stock growth, dividends, bonds, and cash. An account can follow those assumptions or use its own rates and custom curves.
Price growth and dividends are separate inputs. Do not enter a total-return estimate as growth and then add its dividend yield again.
Illustrative numbers
Read a return estimate before entering it
Illustrative total-return estimate7%
Dividend component2%
Price-growth componentAbout 5%, before timing effects
Entering 7% growth plus 2% dividends describes a higher return than the original 7% estimate. Fees and tax treatment then change the amount the household keeps.
Calculation transparency
How it works in MoneyWhatIf
- 01
Shared growth and dividend rates can be fixed or drawn as custom curves. Account-level schedules can change the return source over time.
- 02
Cash accounts have their own return assumption. Cash not assigned to an account uses the cash-flow setting for unallocated money.
- 03
Taxable dividends use the selected qualified share; the remainder is ordinary income. Tax-sheltered accounts follow their account kind’s treatment.
- 04
An account’s yearly fee reduces its modeled balance. Market Simulator and Plan Resilience change the market path for linked holdings; an account using its own fixed assumption may not move with that path.
Keep in mind
Model limits
Assumed returns and curves are scenarios, not forecasts of individual securities.
The illustrative split above explains the inputs; compounding and dividend timing mean the annual calculation is more precise than simply adding percentages.
This explanation documents the planning model. It is educational, not individualized tax, legal, Medicare, or investment advice.
Where it appears
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The words behind it
Related financial terms
Plain-English definitions, with 2026 figures and worked examples, from the financial terms glossary.