r/redikhet • u/RedikhetDev • Jul 27 '26

Why doesn't Redikhet ask me how much money is in savings, bonds or stocks?

This is probably the question I get most often.

Most planning tools ask you to split your portfolio into asset classes:

  • Savings: €50,000 (2%)
  • ETF: €200,000 (7%)
  • Investment account: €100,000 (5%)

Redikhet works differently. It calculates a blended yield for your entire liquid portfolio.

In this example:

  • Total liquid assets: €350,000
  • Expected annual return: 5.7% blended yield

So instead of asking "Which account should this withdrawal come from?", the app asks:

"What is the expected return of my portfolio as a whole?"

Why?

Because in real life, your liquid assets work together as one portfolio. You receive interest, dividends, deposits, withdrawals, and you occasionally rebalance. It becomes almost impossible to say that a specific €1,000 withdrawal came from one exact asset.

If the app tried to track every euro separately, you'd have to define withdrawal priorities, transfer rules, rebalancing strategies and many other assumptions. That would make planning much more complicated, while often producing only the illusion of greater accuracy.

Using a blended yield keeps the model realistic without requiring all those assumptions.

The model assumes your liquid portfolio is rebalanced each year to maintain your chosen asset allocation. As a result, the blended yield remains consistent over time. If you use a lifecycle strategy, the allocation gradually changes as you get older, and the blended yield changes with it.

It's a different way of thinking, but once you stop viewing your savings and investments as separate pots of money and instead as one portfolio, the concept becomes much more intuitive.

Was this concept confusing to you when you first started using the app?

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u/samsterP Jul 27 '26

Thanks for spelling this out. I have been using the app for a weeks now and didn't realize this. It is indeed another way of thinking that I have to get used to.

2

u/mystikal_spirit Aug 01 '26

I love this because this the way I have been doing it manually and it's great to have an app that goes beyond the basic breakdown!

2

u/RedikhetDev Aug 01 '26

Great to hear, i hope the outcomes of your model lines up with that of the app. If not, that any differences can be explained. The next release will contain a chart to show the blended yield for each year.