Guardrails and Buckets: updated calculations

We updated the math behind the Guardrails and Buckets Value-Add reports to align with the Kitces methodology and the Matthew Jarvis spreadsheet conventions used widely in the industry. This update was deployed to production on April 16, 2026.

What changed

Guardrails income bands are now anchored on the client's current monthly income (±10%), rather than derived from a portfolio-based ratio.

Guardrails portfolio thresholds use the Kitces formulas: Upper Portfolio = annual income ÷ lower rate; Lower Portfolio = annual income ÷ upper rate.

Buckets calculations brought to full parity with Guardrails.

Why this matters

In cases where a client's actual withdrawal rate was meaningfully below your firm's available rate, the previous math could produce a lower-guardrail income figure that didn't behave as the methodology intends. The updated calculations resolve this.

If you generated Guardrails or Buckets reports before April 16, the numbers may differ if regenerated today. Existing saved snapshots retain their original values; new generations use the updated math.

Other updates

Settings UI: rate inputs now accept 2-decimal precision.

New default rates for new firms: upper 6.48%, lower 4.32% (±20% of 5.4%).

Portfolio amounts now round to the nearest $10K; available monthly income rounds down to the nearest $10.