Your Potential Value Add

 

 

Disclosure

Important: The projections or other information generated by this calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investment results will vary for each individual and over time. These hypothetical data do not represent the returns on any particular investment.
 
Notes on risk and performance data: All investments, including a portfolio’s current and future holdings, are subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer’s ability to make payments. While U.S. Treasury or government-agency securities provide substantial protection against credit risk, they do not protect investors against price changes due to changing interest rates. U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations.
 
Value Add percentages for questions 1-3 and 6-7 are takes from the white paper “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha”.  (http://vanguardadvisorsblog.com/2014/03/31/the-value-of-enduring-advice). Percentage value for question 4 (Roth conversions) is derived from an analysis of a pool of existing clients. Percentage value for question 5 (small cap or value companies ownership) is derived from the annualized return data of various asset classes. (http://www.empirical.net/wp-content/uploads/2012/01/Size-and-Value.png)