How Is the Return Rate Calculated for the Default Portfolios in Income InSight and SmartRisk?

The return rate is driven by the component asset classes in the selected portfolios. For example, a 60/40 US Stock/Bond Default Portfolio will have a 5% capital gain return and a 2% qualified dividend return on the equity portion (60% of the portfolio), and a -.5% capital return and 5.4% ordinary income return on the bond side (40% of the portfolio). 

The blended return, therefore, would be as follows: 

Asset Class

% Portfolio

Asset Return



Equity (SPY)





Bond (VBMFX)





Blended Total Return





The relevant return for any other portfolio could be calculated in similar fashion.   

Note that for Non-Qualified Accounts, assumptions and adjustments should be made due to the tax implications.