- cashflowDateCashflow date of the goal - this is the date (year is ignored) on which infusions/withdrawals would be realized for the goal. This parameter is optional. If not passed or value is null, the algorithm would consider the first reallocation date as the cashflow date. Scheduled cashflows should be planned for a date prior to the 29th of any month.
- lossThresholdLoss threshold value – the wealth amount that the investor does not want to end up below at the end of the goal tenure. This is an optional parameter. If not passed or value is ‘null’, the GOE algo would calculate the loss threshold. If a number value is passed, GOE would consider that amount as the loss threshold. If loss threshold is not available, this needs to be passed as ‘null’, and GOE
- getPathShow ideal portfolio path over time. If getPath parameter is set to False, the portfolio path would not be returned in the response payload.
- reallocationFreqGoalReallocationFreq
- goalAmountDefines the target wealth value associated with the goal at end of goal tenure. The application accepts up to 7 digits of precision, but it might make sense to cap it at 2 decimal places.
- initialInvestmentDefines the initial investment amount to the goal.
- currentWealthCurrent wealth when the GOE is being called or executed. At the time of initial onboarding, currentWealth == initialInvestment. At subsequent re-allocation dates, currentWealth would be the portfolio account value at the time.
- startDateDefines the start date of goal.
- endDateDefines the end date of goal.
- goalPriorityGoalPriorityDefines the importance a goal holds for a specific user. Order of priority is Need > Want > Wish > Dream. goalPriority can be from 1 to 4 levels. However, note that Goal priority defines the target probabilities and the loss threshold values. For example, goals with a higher priority (e.g. Need) would have a higher target goal probability (85%) with a higher (aggressive) loss threshold value (slightly more than IW value) in the current set-up. This needs to be re-mapped based on the number of goal-priority levels, in case of a change.
- currentPortfolioIdDisplays the current portfolio index that the goal is allocated to; if GOE is getting executed for the first time, it should be null.
- infusionsCash flows from the user, recurring payments yearly. The length for this parameter is dynamic depending on the goal tenure, start date and end date. The reference will always be on the created date. So, the first infusion will be on the first day of the goal followed by infusions every year/month followed by the last infusion/withdrawal on the last day of the goal.
- riskProfileGoalRiskProfileDefines the user’s risk profile – does not vary by goal for each investor. Generally, GOE is configured for three Risk Profile levels (‘Conservative’, ‘Moderate’ and ‘Aggressive’), but it can be customized for 1, 3, 5 and 7 levels of risk profiles. Note that Risk Profiles are mapped to portfolio access. For example, in the current set-up, a ‘Conservative’ investor has access to portfolios 1-8 (or 50% Equity) while an ‘Aggressive’ investor has access to all the portfolios in the suite (up to 90% Equity). This mapping would change based on the client preference and hence needs to be established along with the label names associated with the risk profiles.
- scenarioTypeDetermines the type of the scenario, the suggested portfolio and the wealth glide path is created accordingly. ‘regular’ for regular goals accumulation goals where cash flows are positive (contributions) and with a typical target wealth ‘retirement’ for scenarios where a decumulation period is included: 1. Scenarios with an accumulation period (and an initial wealth) & positive cash flows followed by a decumulation period with withdrawals (negative cash flows) with or without an inheritance 2. Scenarios with an initial wealth followed by a decumulation period with or without an inheritance
- infusionTypeGoalInfusionTypeIndicates the frequency of cash flows – determines the cash flow array corresponding to the ‘infusions’ parameter. This parameter is provided to account for real-world investors who might put in monthly infusions as opposed to yearly infusions. Monthly infusions would be smaller in value (and hence easier to commit to) vs. yearly infusions.
- currentAgeCaptures the current age of the investor.
- retirementAgeCaptures the retirement age of the investor.
- considerMortalityDefines whether the probability of mortality should be accounted for while calculating the probability of reaching the goal and the allocation advice
- currDate
- riskOverrideThis is an optional parameter to disable GOE’s default de-risking logic. Default de-risking logic: For retail capital accumulation goals, GOE would consider portfolios up to 50% Equity exposure in case the goal tenure is 3 years or shorter. For retirement goals (starting at one year left in accumulation and for goals in retirement), GOE would consider portfolios with up to 65% Equity exposure. The default value is set to False. When set to False, GOE considers the default de-risking logic. When set to True, GOE will not consider the default de-risking logic and will consider the risk profile of the participant for portfolio access.
- calibrateRecommendationsSetting this parameter to true will ensure that GOE runs a calibration logic for the recommendations so that incorporating The recommendations would result in reaching the goal probability target (for example, 85% for a Need priority). This is an Optional parameter and is set to ‘false’ as a default.
- reallocateIf the client wants GOE to reallocate between the scheduled re-allocation dates, this should be set to ‘true’.
- engagedParticipantThis is an Optional parameter that applies only to retirement use cases which specifies whether a participant is engaged or unengaged with a default value of true. If the “currentAge” and the “retirementAge” are passed, they will be used to determine the de-risking criteria; If set to true GOE will de-risk 5 years before retirement and if set to false GOE will de-risk 1 year before retirement as per the default admin configuration settings.