February 22, 2023 Personal Wealth White Papers Financial Planning Assumptions (Market Capitalization Weighted Portfolio) Published: February 22, 2023 Introduction This guide is intended to provide Canadian financial planners with our best estimates of future assetclass returns and volatilities to produce financial projections for their clients. This document assumesthat investors hold a broadly diversified portfolio of publicly traded Canadian fixed-income and globalequity, including developed and emerging markets. These estimates are valid uniquely in the context ofan investor who purposely avoids concentration in one or a few securities or sectors. Our investmenthorizon is 30 years. Key inputs are highlighted in green for users of the Naviplan financial planningsoftware. We also have added an appendix to provide users of Naviplan with data presented in a morecompatible format. Table of Contents 1. Introduction 2. Q1 2023 Improvements to Methodology 3. Expected Inflation 4. Primary Residence5. Asset Class Expected Returns 6. Expected Standard Deviations 7. Expected Correlations 8. Composition of Asset Class Returns 9. Portfolio Expected Returns 10. Appendix: Financial Planning Assumptions – Naviplan Input Format This report was written by the Research team at PWL Capital Inc. The ideas, opinions, and recommendations contained in this document are those of the authors and do not necessarily represent the views of PWL Capital Inc. Download Financial Planning Assumptions (Market Capitalization Weighted Portfolio)