IMPORTANT INFORMATION: This calculator is a tool that has been designed to provide educational information as you consider your financial goals. All projections, financial goal information, and probability of achieving outcomes are hypothetical in nature based on a range of inputs and assumptions, and they do not reflect actual investment results and do not guarantee future results. The outcomes from the calculator may vary per use and over time as assumptions and inputs change.

Methodology – Probabilistic projections using Monte Carlo simulation

This tool provides hypothetical, monthly retirement spend projections and portfolio growth based on a range of inputs including: current investment amount, up to a 30 year investment time horizon, savings rates, risk profile, expected inflation rates, and fees associated with proposed ETF investments, and the recommended asset allocation with expected return and volatility for a moderate risk portfolio. A moderate risk portfolio is defined as a globally diversified 60/40 portfolio where approximately 60% of the portfolio is invested in higher risk asset classes, such as US and non-US equity securities, and 40% of the portfolio is invested in lower risk asset classes, such as US and non-US fixed income securities and cash. As a proxy for exposure to these asset classes, the tool uses hypothetical investments in ETFs and cash. With respect to US equity securities, the tool uses hypothetical investments in ETFs that pursue, among others, US Large Cap, US Small/Mid Cap, and Non US Developed Markets strategies. With respect to US and non-US fixed income securities, the tool uses hypothetical investments in ETFs that pursue, among others, Investment Grade Fixed Income strategies.

All projections and estimates are generated using a Monte Carlo simulation, which is a statistical modeling technique for forecasting a range of potential future outcomes based on multiple inputs and assumptions. The expected market returns and volatility (Capital Market Assumptions) are varied in each simulation and are based on the moderate risk model portfolio. Other inputs vary according to specific assumptions (such as an assumed inflation rate), but the assumptions don’t change across simulations. See the inputs used in these calculations below.

The Monte Carlo calculations will always use a minimum of 2,000 and a maximum of 10,000 simulations if convergence isn’t met before 10,000 simulations. The convergence level helps to determine when sufficient simulations have been run to ensure the outcomes fall within an acceptable range.

The tool uses the following as an estimate for the range of potential future outcomes:

• Optimistic growth estimate: projected growth that assumes “good” market performance, defined for purposes of this tool as 33% of the time you are estimated to have this amount or higher
• Conservative growth estimate: projected growth that assumes “poor” market performance, defined for purposes of this tool as 66% of the time you are estimated to have this amount or higher

Investment time horizon: The graph illustrates how a potential investment could grow over a 30year period.

Fees and rebalancing: The calculations and estimates assume an initial investment and monthly contributions are fully invested in the target allocation and do not incorporate factors related to portfolio rebalancing such as drift, transaction costs and possibly tax consequences in selling holdings. All outcomes are inclusive of the current fund fees associated with the moderate risk portfolio asset. Additional fees such as management, advisory and program fees are not incorporated in the estimated outcomes.

Additional Disclosures: