1. Fidelity 2021 Women & Investing Study
4. Methodology for saving vs. investing on-screen chart from Investing Beyond Your Retirement Plan video. Estimates are based on historical returns. Past performance is not indicative of future results. Assumes initial deposit of $5,000 for traditional savings and conservative investment mix with monthly deposits of $333 for 60 months. The timing of deposits and when you are looking to use the money can impact potential return as well as which savings or investment options may be right for you. Here are some assumptions we are making: 1) The average market return corresponds to the 50th percentile of the returns. Conservative investing mix is based on 20% stocks, 50% bonds, 30% short term investments; 2) estimated/average return rates stayed constant over the course of the goal; 3) no withdrawals occurred from the account during the goal time frame; 4) no fees or taxes were applied; 5) the starting amount and monthly contributions are invested in the model allocation in the stated time period; 6) investments in "traditional savings" and “locked savings" assumes only FDIC insured accounts or certificates of deposits are used. For investing returns, calculations are made by computing the 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10-year average annual returns based on monthly historical performance of stocks, bonds, and short-term instruments from 1926 to 2017, obtained from Ibbotson Associates. Past performance is no guarantee of future results. Returns include the reinvestment of dividends and other earnings. The assets are rebalanced monthly to the stated asset mix. Any chart is for illustrative purposes only and does not represent actual or implied performance of any investment option. Stocks are represented by the Dow Jones Total Market Index from March 1987 to the latest calendar year. From 1926 to February 1987, stocks are represented by the Standard & Poor’s 500® Index (S&P 500® Index). The S&P 500® Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Bonds are represented by the Barclays U.S. Aggregate Bond Index from January 1976 to the latest calendar year. The Barclays U.S. Aggregate Bond Index is a market value–weighted index of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of one year or more. From 1926 to December 1975, bonds are represented by the U.S. Intermediate Government Bond Index, which is an unmanaged index that includes the reinvestment of interest income. Short-term instruments are represented by U.S. Treasury bills, which are backed by the full faith and credit of the U.S. government. The average market return corresponds to the 50th percentile of the returns. Savings returns are calculated using a national average savings account rate from FDIC.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
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