Page 5: Estimated Portfolio Value

This page of the QPP Contents Guide goes over Page 5 of the Portfolio Report, the main body of QPP. This guide will describe what the inputs and outputs mean. Also, default settings, if any, are given. Furthermore, links to articles illustrating the specific features will be given.

NOTE: Quantext is not a registered investment advisor.  No information in this document should be taken as advice to buy or sell any asset.  Any and all information obtained from Quantext is on an "AS IS" basis. Please note that the numbers/tickers used in the QPP screen shots and examples are for illustrative purposes only and are not to be taken in any way as advice.

Figure 5: This shows QPP’s page 5 and is based on the revised example, the $1 million dollar portfolio at the person’s age of retirement.

General Information about this page: This page lays out the 50th (median), 20th and 80th percentiles for the portfolio in the years show in the left hand column. These projections are showing the probable long term behavior of the portfolio.

Year: This is the year of consideration.

Age: The age of the owner of the portfolio.

Median Portfolio Value: This is the average (50th percentile) value of the portfolio in that year.

80th Percentile Value: This means that in 80% of the projected scenarios the portfolio has this much or less in it in the given year. In 20% of the possible outcomes the portfolio has more. One can think of this as the rosier future.

20th Percentile Value: This means that in 20% of the projected scenarios the portfolio has this much or less in it. In 80% of the possible outcomes the portfolio has more. This is an indicator of what a grimmer future might hold.

Baseline Portfolio Draw: This column shows what is being drawn from the portfolio each year, in inflated dollars. Notice, in the screen shot above, that our example has the person retiring in 2008. In 2008, no money is drawn from the portfolio. In 2009 we see the first draw. Though we have set the annual draw at $50,000 on page 1 of QPP, the first draw appears as $51,500. This is because of the 3% inflation that we are assuming. (The inflation rate is adjustable on page 1 of QPP.)