We’re thrilled to announce the launch of our new fully dynamic personalized benchmark! As with before the strategic asset allocation benchmark is derived during your wealth planning process. The efficiency of the benchmark portfolio is now greatly increased.


Here’s what makes it stand out:

Comprehensive Optimization: It accounts for all tradeoffs within and between your goals, savings requirements, and investment strategies.

Personalized Risk Assessment: You’ll reveal your unique lifetime risk aversion by selecting your most preferred lifetime probability distribution of Net Worth—one that achieves all your lifetime goals and savings preferences

Real-World Basis: The most preferred planning and investment strategy is built using your actual current net worth and future lifetime probability distribution of net worth. This is based on your own money and personal choices, not a hypothetical questionnaire with gambles that places you in a generic risk bucket without considering the expected compensation in each.

Downside Risk Visibility: The lifetime probability distribution of net worth includes the downside risk of running out of money before the end of retirement, complete with a specific date and probability.
Tax-Efficient Design: The dynamic personalized benchmark incorporates sub sector bond and stock ETFs that can be combined to replicate the complete bond and stock markets. These components are also designed to be optimally placed for tax location between taxable and tax-deferred accounts.

Optimal Investment Weights: The weights for each bond ETF, stock ETF, and money market fund (cash) are determined by each investment’s contribution to your lifetime expected net worth and risk of net worth. This is achieved using asset pricing models and what the market is currently offering for the future—not relying on historical averages that don’t reflect the current economic environment.
Adaptive to Market Changes: Additional dynamics come from evolving market conditions. For instance, after the 2008-2009 financial crisis, the Federal Reserve maintained an extremely low-interest rate environment for at least a decade. During that time, bonds with longer maturities (higher duration) didn’t provide enough yield to compensate for increased interest rate risk. Anyone holding long-term bonds suffered significant losses in 2022 when interest rates rose rapidly to combat inflation. There was high correlation, minimal diversification, and bonds weren’t acting as a hedge. For the decade prior to 2022, our optimization model excluded intermediate and long-term bonds. Instead, with our decomposition of the bond market, allocations went to money market funds, short-term government bonds, and short-term corporate bonds under those conditions. When the yield curve sufficiently steepens, intermediate and long-term bonds will receive allocations. This approach to dynamic asset allocation is proactive rather than reactive.

Easy Re-Optimization: As markets shift their expected returns and risks, re-optimization is straightforward. All the immediately updated account and market data from our providers is available when you log into WealthFluent.

Customization Options: The 15 funds we provide for constructing the strategic asset allocation benchmark aren’t your only choices. You can customize your own benchmark by deleting any existing funds and adding new ones, or start from scratch by adding securities to create a truly unique benchmark.


This new benchmark innovation empowers you to make informed, personalized decisions that align with your financial journey. If you have any questions or would like a demo, please don’t hesitate to reach out.