For more than 80 years, Transamerica has been helping people feel better about retirement. Today, that means much more than just money.
The way we see it, our interest goes beyond our clients’ retirement accounts.
For more than 80 years, Transamerica has been helping people feel better about retirement. Today, that means much more than just money.
The way we see it, our interest goes beyond our clients’ retirement accounts.
IMPORTANT INFORMATION: Managed Advice® provides a participant with an asset allocation mix of funds available within the plan. The asset allocation mix will be automatically rebalanced and reallocated, managing risk and return as participants’ settings and goals change over time. Additional fees and terms and conditions apply to the Managed Advice® service. Participants will continue to bear the fees of the underlying investment options in the Managed Advice® account. Managed Advice® portfolios are subject to the same risks as the underlying asset classes in which they invest. The higher the portfolio’s allocation to stocks the greater the risk. Managed Advice® utilizes models, algorithms and/or calculations ("Models"), which have inherent risks. Models may incorrectly forecast future behavior or produce unexpected results resulting in losses. The success of using Models depends on numerous factors, including the validity, accuracy and completeness of the Model’s development, implementation and maintenance, the Model’s assumptions, factors, algorithms and methodologies, and the accuracy and reliability of the supplied historical or other data. If incorrect data is entered into even a well-founded Model, the resulting information will be incorrect. Investments selected with the use of Models may perform differently than expected as a result of the design of the Model, inputs into the Model, or other factors. The principal value of the portfolio is never guaranteed. Investment return and principal value will fluctuate with market conditions, and participants may lose money.
The Managed Advice® service is offered through Transamerica Retirement Advisors, LLC (TRA), an SEC registered investment advisor. Transamerica Retirement Solutions and TRA are affiliated companies. Morningstar Investment Management Associates, LLC®, a wholly-owned subsidiary of Morningstar, is an SEC-registered investment advisor that serves as an independent financial expert and provides the underlying investment advice and portfolio management methodology for the Managed Advice® service. Morningstar is not affiliated with any Transamerica companies. Please see the Managed Advice® agreement for more information on the terms and conditions that apply. Please see additional important disclosures at the bottom of this page.
Please download and review the Transamerica Customer Security Policy.
Please download and review the Transamerica Retirement Advisors, LLC. Form CRS.
IMPORTANT INFORMATION: About Probability Illustrations, Limitations, and Key Assumptions
The probability illustrations generated from the engine are based on “Monte Carlo” simulations of 500 possible investment scenarios for a given time period and assume a range of possible returns. The illustrations are generated according to models developed by Morningstar Investment Management LLC, a leading independent provider of asset allocation, manager selection, and portfolio construction. The Your Retirement Outlook® graphic reflects the difference between the model’s estimated annual income (which corresponds to a 70% probability level of income in the investment scenarios simulated) and your annual income goal.
When forecasting the probability of achieving your income goal, the model employs different returns for different asset classes, based on Morningstar Investment Management’s capital market assumptions developed using historical and forward-looking data. Forecasts of expected return, expected standard deviation and correlation among asset classes based on Morningstar Investment Management LLC's proprietary equity, fixed income, currency and risk models. Current assets are assigned to asset classes based on Morningstar Categories, and fees and charges inherent in investing are incorporated with an average fee assumption for each asset class. The benchmarks used for modeling the various asset classes are below. Return assumptions are updated annually; these updates may have a material impact on your projections. Return assumptions are estimates not guarantees. The returns you experience may be materially different than projections. You cannot invest directly in an index.
Lower Risk/
Volatility | Asset Class Cash Alternatives Short Term Bonds Aggregate Bonds Foreign Bonds Direct Real Estate High Yield Bonds TIPS Long Term Bonds Large Cap Value Equity Large Cap Equity Mid Cap Value Equity Mid Cap Equity International Equity Commodities Mid / Small Cap Value Equity Large Cap Growth Equity Mid / Small Cap Equity Small Cap Value Equity Small Cap Equity Mid Cap Growth Equity Mid / Small Cap Growth Equity REITs Small Cap Growth Equity Emerging Markets Equity | Benchmark BofA ML US Treasury Bill 3 Month USD BarCap US Govt/Credit 1-3 Yr TR USD Barclays Capital US Agg Bond TR Barclays Global Aggregate Ex USD TR NCREIF Transaction Based Index Barclays Capital US Corporate High Yield TR Barclays Capital Global Inflation Linked US TIPS TR Barclays Capital US Govt/Credit Long TR Russell 1000 Value TR Russell 1000 TR Russell Mid Cap Value TR Russell Mid Cap TR MSCI EAFE GR Bloomberg Commodity TR Russell 2500 Value TR Russell 1000 Growth TR Russell 2500 TR Russell 2000 Value TR Russell 2000 TR Russell Mid Cap Growth TR Russell 2500 Growth TR FTSE NAREIT Equity REITs TR Russell 2000 Growth TR MSCI EM GR | |
Higher Risk/
Volatility |
Unless you choose otherwise or your employer supplies different information, the probability illustrations assume retirement at the age at which you qualify for full Social Security benefits and an annual retirement income goal of 80% of your projected final working salary. Social Security estimates are based on the Social Security Administration methodology and your current salary. The probability illustrations also assume a consistent contribution percentage and asset allocation (no future changes or rebalancing unless you are subscribed to a managed account or a target date asset allocation service), annual inflation of approximately 2%, and annual salary increases based on a calculation that incorporates multiple factors including a salary growth curve and inflation. Mortality assumptions are based on the Society of Actuaries tables.
The engine utilizes models, algorithms and/or calculations ("Models"). The Models are subject to a number of limitations. Returns associated with market extremes may occur more frequently than assumed in the Models. Some asset classes have relatively limited histories; for these classes the Models use historical data for shorter time periods. The Model does not consider other asset classes such as hedge funds or private equity, which may have characteristics similar or superior to those used in the Model. Capital market assumptions are forecasts which involve known and unknown risks, uncertainties, and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance, or achievements expressed or implied by those projections for any reason. Additionally, Models have inherent risks. Models may incorrectly forecast future behavior or produce unexpected results resulting in losses. The success of using Models depends on numerous factors, including the validity, accuracy and completeness of the Model’s development, implementation and maintenance, the Model’s assumptions, factors, algorithms and methodologies, and the accuracy and reliability of the supplied historical or other data. If incorrect data is entered into even a well-founded Model, the resulting information will be incorrect. Investments selected with the use of Models may perform differently than expected as a result of the design of the Model, inputs into the Model, or other factors.
There is no guarantee that your income goal will be achieved or that the aggregate accumulated amount will ensure a specified annual retirement income. Results may vary with each use and over time.
IMPORTANT: The projections or other information generated by the engine regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Moreover, even though the tool’s estimates are statistically sound based upon the simulations it runs, the tool cannot foresee or account for every possible scenario that may negatively impact your financial situation. Thus you should monitor your account regularly and base your investment decisions on your time horizon, risk tolerance, and personal financial situation, as well as on the information in the prospectuses for investments you consider.
Transamerica has licensed the Morningstar® Wealth Forecasting EngineSM from Morningstar, Inc., which is used by Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc, in the services it provides to participants. Morningstar and Morningstar Investment Management are not affiliated with Transamerica. The Morningstar name and logo are registered marks of Morningstar, Inc.
PT 6132-MAO (04/18)