The rate of return assumptions used in the program and the rate of return generated by the calculator should not be considered as suggesting or guaranteeing any rate of return or level of performance on any product, service or strategy offered by Homestead Advisers or Homestead Financial Services Corp., including any Homestead Fund.
Important
Upcoming goals are generally less than 10 years in the future, and often occur before retirement. This analysis will tell you the monthly savings required to achieve each goal based on your total goal amount and timing. If you change a monthly savings amount, you’ll see how much you’ll over or under fund your goal.
The program assumes you have already made the current months savings on the goal. Therefore, the first savings amount calculated will start the following month. The program assumes your goal amount and savings will increase at the base inflation rate utilized by your financial firm. Because of this, the software inflates your total savings by this rate after each year.
Information that you provided about your assets and upcoming goals are key assumptions for the calculations and projections. If any of the assumptions are incorrect, you should notify your financial professional. Even small changes in assumptions can have a substantial impact on the results shown. The information provided by you should be reviewed periodically and updated when either the information or your circumstances change.
Assumptions and Limitations
All asset and net worth information included is provided by you or your designated agents and is not a substitute for the information contained in the official account statements provided to you by custodians. The current asset data and values contained in those account statements should be used to update the asset information included in program.
The projections or other information generated by this program regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
The return assumptions in this program are not reflective of any specific product, including any product, service or strategy offered by Homestead Advisers Corp. or Homestead Financial Services Corp., including any Homestead Fund. These assumptions do not include any fees or expenses that may be incurred by investing in specific products. The actual returns of a specific product may be more or less than the returns used in this program. It is not possible to directly invest in an index. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations. They should not be considered a guarantee of future performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment.
All results use simplifying assumptions that do not completely or accurately reflect your specific circumstances. This program does not have the ability to accurately predict the future. As investment returns, inflation, taxes, and other economic conditions vary from the program’s assumptions, your actual results will vary (perhaps significantly) from those presented.
All calculations use asset class returns, not returns of actual investments. The projected return assumptions used are estimates based on average annual returns for each asset class. The portfolio returns are calculated by weighting individual return assumptions for each asset class according to your portfolio allocation. The portfolio returns may have been modified by including adjustments to the total return and the inflation rate. The portfolio returns assume reinvestment of interest and dividends at net asset value without taxes, and also assume that the portfolio has been rebalanced to reflect the initial recommendation. No portfolio rebalancing costs, including taxes, if applicable, are deducted from the portfolio value. No portfolio allocation eliminates risk or guarantees investment results. The rate of return assumption used in the program and the rate of return generated by the calculator should not be considered as suggesting or guaranteeing any rate of return or level of performance on any product, service or strategy offered by Homestead Advisers Corp. or Homestead Financial Services Corp., including any Homestead Fund.
This program does not provide recommendations for any products or securities. This program does not provide legal, tax, insurance, or accounting advice. Before making decisions with legal, tax, insurance, or accounting ramifications, you should consult the appropriate professionals for advice that is specific to your situation. The results displayed may vary with each use and over time.
Risk Inherent in Investing
Investing in fixed income securities involves interest rate risk, credit risk, and inflation risk. Interest rate risk is the possibility that bond prices will decrease because of an interest rate increase. When interest rates rise, bond prices and the values of fixed income securities fall. When interest rates fall, bond prices and the values of fixed income securities rise. Credit risk is the risk that a company will not be able to pay its debts, including the interest on its bonds. Inflation risk is the possibility that the interest paid on an investment in bonds will be lower than the inflation rate, decreasing purchasing power.
Cash alternatives typically include money market securities and U.S. treasury bills. Investing in such cash alternatives involves inflation risk. In addition, investments in money market securities may involve credit risk and a risk of principal loss. Because money market securities are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency, there is no guarantee the value of your investment will be maintained at $1.00 per share, and your shares, when sold, may be worth more or less than what you originally paid for them. U.S. Treasury bills are subject to market risk if sold prior to maturity. Market risk is the possibility that the value, when sold, might be less than the purchase price.
Investing in stock securities involves volatility risk, market risk, business risk, and industry risk. The prices of most stocks fluctuate. Volatility risk is the chance that the value of a stock will fall. Market risk is chance that the prices of all stocks will fall due to conditions in the economic environment. Business risk is the chance that a specific company’s stock will fall because of issues affecting it. Industry risk is the chance that a set of factors particular to an industry group will adversely affect stock prices within the industry.
International investing involves additional risks including, but not limited to, changes in currency exchange rates, differences in accounting and taxation policies, and political or economic instabilities that can increase or decrease returns.
IMPORTANT: The projections or other information generated by iBlocks regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.