Our Assumptions and Methodology

The primary objective of the Fidelity GoSM investment analysis tool (the "tool") is to help provide education on how current savings and estimated future contributions may help to satisfy a future savings goal for your Fidelity GoSM account. Using inputs you provide, we gather general information about a hypothetical scenario and roughly estimate how that scenario may perform over time. The estimated results offered by the tool are not intended to be investment advice or recommendations, and you should not rely on the tool as the primary basis for your saving or investment decisions. The tool is not a substitute for a more detailed plan. The tool's results regarding the hypothetical accumulation of assets are derived from Monte Carlo simulations based on historical market data taking into consideration the range of balance outcomes a portfolio might experience under different market conditions, although the market's past performance does not predict how it will perform in the future. The tool provides results based on how an asset allocation similar to the long-term asset allocation you selected* would perform in the range of simulated market scenarios. In addition, the tool incorporates a management fee assumption to hypothetically illustrate the impact of Account expenses to estimated future balances. For illustration purposes, the tool is applying a hypothetical gross advisory fee of .03% on a monthly basis to approximate the .35% annual advisory fee charged for management of a Fidelity Go account. The tool does not take into account any fees charged by the underlying investments held in an account, and, if considered, such fees would reduce performance.

IMPORTANT: The projections or other information generated by this tool regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Results may vary with each use and over time.

Limitations of the tool

It is important to remember that the tool is not intended to project or predict the present or future value of an actual asset allocation, actual investments, or actual holdings in your Fidelity GoSM Account. Also, the tool should not be used as the primary basis for any investment, savings or tax-planning decisions. This tool makes no assumptions about taxes and displays all results in gross (before tax) format. All calculations and results generated by the tool are generated through Monte Carlo simulations based on an analysis of historical market data. The analysis considers the probabilities of returns that certain asset mixes might experience under different market conditions. The tool assumes a level of diversity within each asset class consistent with a specific market index. Volatility of the stocks, bonds and short-term asset classes is based on the historical annual index data from 1926 through the most recent year-end data available from Morningstar, Inc. Stocks (domestic and foreign), bonds, and short-term are represented by S&P 500®†, U.S. Intermediate Term Government Bond Index, and 30-day U.S. Treasury Bill Index, respectively. Monthly returns assume the reinvestment of interest and dividends. It is not possible to invest directly in an index. All indices include reinvestment of dividends and interest income. All calculations are purely hypothetical and will not affect your actual accounts. Remember, past performance is no guarantee of future results. Performance returns for actual investments will generally be reduced by expenses which may be different from those used in these hypothetical illustrations. Returns also will generally be reduced by taxes.

How calculations work

This tool uses data from a modeling engine which estimates the likelihood of a particular outcome based on an analysis of historical market data. The rounded estimates are expressed in nominal terms (not adjusted for inflation) and are determined by running data through 100,000 pre-generated hypothetical market simulations. Results are estimated at multiple confidence levels ranging from a representation of a weak market to a strong market. For example, a weak market is represented by a 90% confidence level, which means that the displayed level of assets may be accumulated in at least 90% of the historical 100,000 market performance scenarios incorporated into the tool.

The asset projection is based on four data items derived from information provided by you:

  1. Initial balance
  2. Monthly savings amount assumed to be invested at the end of each period (we assume you save and invest the same amount every month). For customer scenarios the simulation will utilize the planned contributions we have on file.
  3. Asset allocation (chosen from among the available set of Investment Strategies). The asset allocation is assumed to be maintained throughout the simulation.
  4. Investment time horizon (how long before you will need your money) or 3 years, whichever is greater.

IMPORTANT: The hypothetical asset projections do not factor in withdrawals from your Account