Net worth projection
A net worth projection is a multi-year forecast of total assets minus total liabilities, given current accounts, contribution rates, and reasonable growth assumptions. For personal CFO use cases, the projection is what makes 'where will I be in 5 years' a real answer.
Why it matters
Most consumers see a static net-worth snapshot when they bother to look (Mint, Personal Capital, banking apps). The static number is rarely actionable: "I have $X today" does not tell anyone whether they are on track for retirement, a house, college tuition, anything specific.
A net-worth projection turns the snapshot into a trajectory. Given current account balances, monthly contribution rates, debt payoff schedules, and reasonable growth assumptions, the projection forecasts net worth over 1, 5, 10, 30 years. Three numbers turn into a curve.
The math is not complex. The components are:
- Asset growth. Investment accounts grow at assumed long-term return rates; cash savings grow at the savings rate.
- Liability paydown. Mortgage, student loans, credit cards pay down on their amortization schedules.
- Cash flow. Monthly contributions add to investment accounts; debt payments shrink liabilities.
- Adjustments. One-time inflows (bonus, sale of an asset), one-time outflows (down payment, medical event).
The honest disclosures:
- Returns are not guaranteed. A 7% historical-average assumption is fine for planning; it is not a prediction. Projections should show ranges, not point estimates.
- Inflation matters. Most projections show nominal dollars; inflation-adjusted is the more meaningful number for long-term planning.
- Tax treatment varies. Pre-tax vs after-tax accounts have different growth math. Good projections separate them.
How Ajeris handles this
Ajeris's financial plan engine generates net worth projections from the user's connected accounts (Plaid-wired) and stated goals. The math is in-house and deterministic; the agent narrates the projection in natural language.
Users can ask "what changes if I save an extra $200/month?" and the agent re-runs the projection with the new assumption. The output is range-based (best case, expected, worst case) and inflation-adjusted by default.
