In due time, the trust will enter a distribution phase. How much income can the portfolio safely generate? To what extent should demands for income distributions influence portfolio design? How will the spending policy work under adverse economic and market conditions? How should the trust balance the interests of income beneficiaries with the interests of remaindermen?
Our powerful analytical tool, WealthCaster®, models portfolio spending and wealth transfer strategies under thousands of economic scenarios. WealthCaster® manages two types of risk:
- Bankruptcy Risk: the possibility that trust distributions will exhaust all assets.
- Opportunity Risk: the chance that spending policy will reduce both trust aset accumulation and distributions to income beneficiaries below attainable levels.
Our analysis will help determine what distributions the trust’s assets can support, while maintaining portfolio integrity. We will:
- Compare the effectiveness of alternate portfolio designs and spending policies.
- Calculate the probability that the trust will achieve specific accumulation goals.
- Illustrate the impact of applicable tax regimens, expenses and fee schedules.
WealthCaster® shows how spending decisions affect the eventual value of your portfolio. With WealthCaster®, you can be confident that the trust appropriately balances income objectives and accumulation goals.