May 10, 2020


  • Default Rate Updates
    As you know, the economy has been dramatically altered by the Coronavirus. In particular, long-term interest rates as well as the projected inflation rate have dropped substantially. In light of this, we've decided to reduce MaxiFi Planner's default nominal rate of return and inflation rate assumptions, which control the assumed real return on regular assets, retirement accounts, 529 accounts, and reserve accounts. These assumptions are also used to calculate what you'll earn from annuitizing all or some of your retirement account holdings. Our default values had been 2.5% for inflation and 3.5% for the interest rates, giving a real interest rate close to 1%. We have now changed all values to 1.25% for a real interest rate of 0%. You will find more detailed information and help regarding these settings on the "Safe Returns/Inflation" tab. Briefly, we base the safe return rates on the 30-year nominal Treasury bond yield. To determine long-term inflation expectations we now subtract the 30-year Treasury Inflation-Protected Securities (TIPS) yield from the Treasury bond yield.
  • Housing Contingency (Premium/PRO Only)
    Contingency settings are now available for Primary and Vacation homes, allowing you to adjust your housing situation in case of unexpected death of a spouse or partner.
  • Improved some error messages related to past and future dates in Social Security filing date entry.