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Capital market assumptions: The tool uses capital market assumptions developed by the CIO and based partly on data concerning the historical performance of the corresponding index proxy or benchmark while taking special events or circumstances into consideration. The asset class assumptions reflect estimates of long-term (25 year) future returns from the asset classes indicated for each portfolio. Each asset class assumption includes estimates of expected return, expected standard deviation and the correlation coefficient among all asset classes. The asset class assumptions were developed following a rigorous process and do not merely assume that historic returns will continue to be realized in the future; instead, they considered multiple factors and analyses, including the following:

  • A close examination of asset class performance over several economic cycles, with the inclusion of recent market movements
  • Consideration of special events or circumstances, with the appreciation that future performance may not necessarily follow past patterns
  • Review of academic research and advanced analytical forecasting and statistical models
Please review the applicable Merrill Guided Investing Program Brochure (PDF) or Merrill Guided Investing with Advisor Program Brochure (PDF) for information including the program fee, rebalancing, and the details of the investment advisory program.

Your recommended investment strategy will be based solely on the information you provide to us for this specific investment goal and is separate from any other advisory program offered with us. If there are multiple owners on this account, the information you provide should reflect the views and circumstances of all owners on the account. If you are the fiduciary of this account for the benefit of the account owner or account holder (e.g., trustee for a trust or custodian for an UTMA), please keep in mind that these assets will be invested for the benefit of the account owner or account holder. Merrill Guided Investing is offered with and without an advisor. Merrill, Merrill Lynch, and/or Merrill Edge investment advisory programs are offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") and Managed Account Advisors LLC ("MAA") an affiliate of MLPF&S. MLPF&S and MAA are registered investment advisers. Investment adviser registration does not imply a certain level of skill or training.

Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.